• Sales up 14%
• EBIT up 17%
• Profit for the period Euro 9.0 million

Hamburg, 10 August 2005 – In the first half of financial year 2005 Deutsche EuroShop (ISIN: DE0007480204) realised an EBIT of Euro 28.4 million (prior-year period: Euro 24.3 million). The profit for the period increased by 8 % – currency-adjusted by 30% – to Euro 9.0 million compared to the first six months of financial year 2004 (Euro 8.3 million).

Revenue up 14%
Revenue rose by 14% from Euro 30.7 million in the first half of 2004 to Euro 35.2 million in the period under review. Adjusted for the revenue contributions from the newly opened centers and the Italian shopping center sold in July 2004, revenue was up 1%.

Slight decline in expenses
Whilst other operating income (Euro 0.9 million) was down Euro 0.7 million on the first half of 2004 (Euro 1.6 million), other operating expenses dropped by Euro 0.3 million to Euro 7.3 million.

17% rise in EBIT
Earnings before interest and taxes (EBIT) rose by Euro 4.1 million from Euro 24.3 million to Euro 28.4 million (+17%). In currency-adjusted terms, earnings were up Euro 5.5 million (+24%).

Net interest expense impacts net finance costs
Net interest expense deteriorated by Euro 3.1 million compared with the first half of the previous year to Euro 15.5 million. This was primarily due to higher interest expenses for the newly opened properties. In contrast, income from investments improved to Euro 2.4 million. Measurement gains and losses, i.e. income and expense from the measurement of financial instruments and properties, only include the investment expenses incurred in relation to operational shopping centers during the period under review. In the first half of 2004, the expense was Euro 1.2 million higher than the period under review (Euro 0.3 million), due to the cost of expansion measures in the Rhein-Neckar-Zentrum, which must be recognised as expenses under IFRS. All in all the net finance costs amounted to Euro -13.9 million, an increase of Euro 1.7 compared to the first six months of 2004.

Consolidated profit for the period rises 8%
Profit from ordinary activities (EBT) was up Euro 2.4 million year-on-year at Euro 14.5 million. After the deduction of taxes and minority interest in earnings, profit for the period amounted to Euro 9.0 million or Euro 0.58 per share. This was up Euro 0.7 million or 8% on the first half of 2004. In currency-adjusted terms, earnings rose by 30%.

Outlook
The results for the first six months of 2005 are in line with the forecast for the full year. It is still the plan to lift revenue to Euro 68-72 million in 2005. Currency-adjusted earnings before interest and taxes (EBIT) are slated to increase to Euro 53-56 million. Currency-adjusted earnings before taxes (EBT) are expected to reach Euro 28-30 million, excluding measurement gains and losses.

From today's viewpoint, the Executive Board is optimistic to announce positive news in the second half of the year with regard to further acquisitions. A portfolio expansion of Euro 100 to 150 million is planned for 2005.

The pre-letting rate at City Arkaden Klagenfurt, the last shopping center currently under construction, is now over 85%. The topping-out ceremony will take place on 14 September 2005, with the opening planned for spring 2006.

The Executive Board continues to expect to pay a dividend of at least Euro 1.92 for financial year 2005 as well, and to generate the necessary cash flow for this of over Euro 30 million.

Webcast of the conference call
Deutsche EuroShop will webcast its English conference call on Wednesday, August 10, 2005, at 10:00 a.m. CET live on the Internet. The webcast can be accessed at the Company's website at Investor Relations.

At the same internet address the complete Interim Report is available as PDF file and as interactive online version.

Deutsche EuroShop’s key data (IFRS)