03.10.2008 – 17:03

AIG International Real Estate GmbH&Co. KGaA

euro adhoc: AIG International Real Estate GmbH & Co. KGaA
other
AIG International Real Estate announces additional dispositions from portfolio, expects record profits for Q3 and full year 2008

  Disclosure announcement transmitted by euro adhoc. The issuer is responsible
  for the content of this announcement.

03.10.2008

PRESS RELEASE

AIG International Real Estate announces additional dispositions from 
portfolio, expects record profits for Q3 and full year 2008

Frankfurt am Main, October 3, 2008 - AIG  International  Real  Estate
announces additional dispositions from portfolio, expects record 
profits for Q3  and  full year 2008, cash on hand rises, will suspend
new investments, and  will  seek  to return cash to investors through
dividends or share repurchases over the  medium term.

AIG International Real Estate GmbH & Co. KGaA (the  "Company",  and  
along  with its consolidated subsidiaries, the "Group") announced 
today  the  sale  of  four additional  properties  from  the  Group  
portfolio  in  Japan  and  the   final distribution from another 
investment in Europe that  was  sold  earlier  in  the year.  The 
four investments sold, with closing dates between  September  26  and
September 30, were Chaymachi, Oyamacho, and the two remaining 
properties in  the Forest Green portfolio.  Proceeds to the Group 
from these sales are expected  to be  approximately  EUR  8  million 
gross  of  Japanese  withholding  taxes  and substantially all of 
these proceeds are expected to be  received  by  the  Group during 
October.  In addition, the Group received an additional EUR  1.5  
million relating to the sale of its Metropole investment in 
Copenhagen, Denmark.

Following the receipt of the Metropole proceeds, and  initial  
proceeds  of  EUR 1.3 million from the Japanese exits, the Group's 
cash  on  hand  (including  USD 2.9  million  of  restricted  cash)  
is  in  excess  of  EUR  26  million,  with approximately  EUR  6  
million  in  additional  proceeds   from   the   Japanese investments
expected to be received during October.

Without including the exits discussed above (which will be booked in 
the  fourth quarter), the Group expects to report gross income of 
more than EUR  21  million for the third quarter alone and more than 
EUR 34 million  for  the  first  three quarters. Net income for the 
first three quarters is expected to  be  more  than EUR 20 million, 
which would represent earnings of more than EUR 4.50 per  share, and 
would be more than twice the net income recorded by the Group  in  
any  full calendar year since the Company's IPO in 2002.  Additional 
income generation  in the fourth quarter is expected to be strong due
to the gains  generated  by  the sales  described  above  and  due  
to  further  expected  gains   generated   by distributions from the 
Group's Marina Boulevard  investment  in  Singapore  and, 
potentially, from additional exits.

Although the Group will continue  to  make  follow-on  investments  
in  existing properties and to pay additional amounts into investment
funds  as  these  funds call commitments, the Group has decided to 
make no additional investments  until further notice.  This measure 
will allow the Group  to  further  strengthen  its liquidity.  
Consistent with its commitments to existing investments  and  funds, 
the Company will seek to return cash to shareholders over the next 
six  to  nine months in the form of either a dividend or a repurchase
of  outstanding  shares by the Company.  The Company's management 
will continue  to  monitor  investment cash flows during the fourth 
quarter and expects to make a further  announcement before the end of
the year regarding any expected  dividend  payments  or  share 
repurchase programs.

Contact:
AIG International Real Estate GmbH & Co. KGaA
Andrew Fletcher
Phone: +49 (0)69 9711 3225
E-Mail:  andrew.fletcher@aig-ire.de

Share Data:
WKN:        634421
ISIN:       DE0006344211

Stockmarkets:    official dealing/prime standard: Frankfurter Wertpapierbörse
                       free trade: Berliner Wertpapierbörse, Baden-
Württembergische Wertpapierbörse,            Bayerische Börse, Bremer

Wertpapierbörse (BWB)

end of announcement                               euro adhoc

Further inquiry note:

AIG International Real Estate Gmbh & Co. KGaA
Nicole Gauchat
Telefon: +49(0)69 97 11 32 25
E-Mail: nicole.gauchat@aig-ire.de

Branche: Financial & Business Services
ISIN: DE0006344211
WKN: 634421
Index: CDAX, Classic All Share, Prime All Share
Börsen: Börse Frankfurt / regulated dealing/prime standard
Börse Berlin / free trade
Börse Stuttgart / free trade
Börse München / free trade