• Revenues total € 3.33 million
• Consolidated net income after three months of € 0.35 million

Munich, June 2, 2008 – Fair Value REIT-AG, to date Germany's only "upstream REIT", published its quarterly report for the first three months of the current fiscal year today. The company recorded revenues in the first quarter of 2008 totaling € 3.33 million. Of this total, € 2.45 million stemmed from the fully consolidated majority participations in five closed-end real estate funds. A further € 0.87 million resulted from Fair Value's portfolio of directly held properties. Net rental income totaled € 2.76 million. A comparison with Q1 2007 is not meaningful, as the company only commenced its operating activities at the start of the fourth quarter of 2007.

Fair Value REIT-AG also records further sustained income from its minority participations in a current total of eight closed-end real estate funds (associated companies). This income from equity-accounted participations totaled € 0.42 million in the period under review and was carried under the financial result. A special feature of the first quarter was the expense from the market valuation of interest rate hedges in the amount of € 0.95 million (Fair Value's proportion: € 0.87 million). After taking minority interests and the net interest expense into account, the financial result in the first quarter was € -1.52 million. In total, Fair Value REITAG thus recorded consolidated net income (IFRS) of around € 0.35 million in the first quarter of 2008. Earnings per share thus totaled € 0.04.

Frank Schaich, Fair Value REIT-AG's CEO is very pleased with the company's results: "Our business is growing on track. We have been able to lift our rental income substantially compared to Q4 2007. Consolidated net income in the first quarter of 2008 of € 1.2 million after adjustment for the market valuation of interest rate hedges confirms that our portfolio generates sustained earnings." The Managing Board is forecasting a further increase in earnings after the completion of an office property at Düsseldorf airport in July 2008. "The excellent location in the direct proximity of the terminal means that rentals are progressing rapidly. This will create the basis for our further growth," Frank Schaich went on to say.

Fair Value's positive growth can also be seen on its balance sheet. Compared to December 31, 2007, the company's total assets have increased by around € 3.91 million to € 234.27 million as a result of the incurred acquisition costs for the office property in Düsseldorf. As of March 31, 2007, Fair Value REIT-AG had equity of around € 95.0 million. Net Asset Value (NAV) per share totaled € 10.10, up slightly by € 0.06 compared to December 31, 2007.

The full Q1 report will be published today on the Web site www.fvreit.de in the Investor Relations section.