Deutsche EuroShop AG / Key word(s): Capital Increase 04.11.2010 08:31 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Not for release, publication or distribution in the United States, Canada, Japan or Australia - Rights issue with a ratio of 1:8 for the financing of the acquisition of shopping centers approved Hamburg, November 4, 2010 - The management board of Deutsche EuroShop AG, Hamburg (ISIN DE0007480204), has resolved to increase the registered share capital of the company by up to EUR 5,736,822 by issuing for cash up to 5,736,822 new ordinary registered shares, corresponding to approximately 12.5 % of the current registered share capital, by way of a partial use of authorized capital. A committee of the supervisory board formed for this purpose has consented to the resolution of the management board. The new shares will be offered to existing shareholders by means of indirect subscription rights at a ratio of 1:8, meaning that shareholders will be entitled to subscribe for one new share for each eight existing shares held. In order to ensure an even subscription ratio, one of the existing shareholders has agreed to waive its subscription rights with respect to two existing shares held by it. The subscription price is EUR23.00. The subscription period begins on November 8, 2010 and is expected to end on November 22, 2010. The new shares will have full dividend entitlement for the fiscal year 2010. The rights offering is directed exclusively to existing shareholders of the company. Trading in the subscription rights will not be provided for. Any new shares that are not subscribed for in connection with the rights offering can be acquired exclusively by existing shareholders by means of a supplemental subscription at the subscription price. Binding offers to acquire shares in such supplemental subscriptions must be delivered during the subscription period. To the extent that, due to a large number of supplemental subscriptions, it is not possible to allocate to each shareholder all of the additional shares that it wishes to purchase, offers to purchase additional shares will be filled pro rata based on the number of additional shares sought by each shareholder in proportion to the total volume of supplemental subscriptions, until the entire volume of the capital increase has been allocated. The company intends to use the net proceeds of the offering of up to EUR132 million to finance its acquisition of the Billstedt-Center Hamburg and further shopping center investments. The total investment volume for the Billstedt-Center Hamburg amounts to approximately EUR 160 million, of which up to EUR 80 million is to be financed by long-term debt. KG CURA Vermögensverwaltung G. m. b. H. & Co., Hamburg, which is controlled by members of the Otto family, is obligated on the basis of a framework agreement with the company to acquire up to a total of 1,147,364 new shares at the subscription price by exercising its subscription rights and delivering a binding supplemental subscription offer. The new shares are to be admitted to trading on the Regulated Market and the sub-section of the Official Market with further post-admission obligations (Prime Standard) of the Frankfurt Stock Exchange without publication of a prospectus. The Joint Lead Managers for the transaction are COMMERZBANK Aktiengesellschaft and DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Frankfurt am Main. Deutsche EuroShop AG Management Board This publication constitutes neither an offer to sell nor the solicitation of an offer to buy securities. In particular, this document constitutes neither an offer to sell nor the solicitation of an offer to purchase securities in the United States. The subscription rights and the shares in Deutsche EuroShop AG (the 'Securities') may not be offered or sold in the United States or to or for the account or benefit of 'U. S. persons' (as such term is defined in Regulation S under the U. S. Securities Act of 1933, as amended (the 'Securities Act')) absent registration or an exemption from registration under the Securities Act. The Securities have not been and will not be registered under the Securities Act. Any public offering of securities in the United States must be made by means of a prospectus that may be obtained from the issuer and that contains detailed information about the company and management as well as financial statements. There will be no public offering of the Securities in the United States. 04.11.2010 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Deutsche EuroShop AG Oderfelder Straße 23 20149 Hamburg Deutschland Phone: +49 (0)40 413 579-0 Fax: +49 (0)40 413 579-29 E-mail: ir@deutsche-euroshop.de Internet: www.deutsche-euroshop.de ISIN: DE0007480204 WKN: 748020 Indices: MDAX Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Hamburg, München, Düsseldorf, Berlin, Hannover, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------