10.04.2008

C-QUADRAT Investment AG has closed the 2007 financial year with a recordconsolidated result which shows that its fund management is sound and helpinginvestors to seek better opportunities. The figures below speak forthemselves.

All divisions have shown growth: Fee and commission income 2007: EUR47.4 million (+21%); Operating profit before depreciation 2007: EUR6.5 million (+23%); Profit before tax 2007: EUR 6.9 million (+19%); Netprofit: EUR 5.7 million (+20%).

Vienna/Frankfurt, 1. April 2008. For the sixth year in succession,C-QUADRAT Investment AG (ISIN AT0000613005) considerably increased its annualresult year-on-year and looks back on its most successful year since the companywas founded in 1991. The path of profitable growth was pursued in 2007. Feeand commission income in financial year 2007 was pushed by 21% to EUR47.4 million. Net income (fee and commission income minus fee and commissionexpenses) increased by as much as 36% to EUR 21.1 million. Operating profitbefore depreciation in the C-QUADRAT Group moved up by 23% to EUR 6.5 million,Profit before tax by 19% to EUR 6.9 million. Net profit for the year totalledEUR 5.7 million in the 2007 financial year, up 20% year-on-year. Bothdivisions, Asset Management and Brokerage & Advisory, contributed equally tothis earnings upturn.

Fee and commission income in the Asset Management division rose by 24%

The Asset Management division generated significant organic growth. Theincome of this division increased by 24% to EUR 24.8 million. This upturn wasdriven by higher assets under management. In addition to the home market ofAustria, these were primarily acquired in Germany. In the previous year on thisimportant market of the future, C-QUADRAT not only initiated activities in theAsset Management division for institutional clients but also distributedC-QUADRAT products to end consumers via indirect distribution channels. As earlyas November 2007, more C-QUADRAT funds were sold in Germany than in Austria forthe first time.

Fee and commission income in the Brokerage & Advisory division upby 18%

The Brokerage & Advisory division, which covers the mediation ofsecurities and consultancy services, also contributed to the positive trend. Theincome of this division increased by 18% to EUR 22.6 million. This growth wasdriven primarily by the assets of the Absolute Plus Group which were relevantfor earnings for the whole of the reporting year for the first time in2007. The Absolute Plus Group specialises in the mediation of hedge funds andalternative investments to institutional customers.

Operating profit before depreciation 23% higher

Due to the positive trend in the two divisions, operating profit beforedepreciation increased 23% year-on-year.

For the first time and as scheduled, amortisation was taken on customerportfolios resulting from the acquisition of the Absolute Plus Group. For thisreason the depreciation and amortisation figure moved up sharply from EUR1.1 million in 2006 to EUR 2.8 million (+152%).

Profit before tax rises by 19% to EUR 6.9 million

In the reporting year, income from associates increased by 282% to EUR1.9 million (2006: EUR 0.5 million). A key associate contributing to thisresult was the asset management company, ARTS Asset Management GmbH.

The overall financial result rose by 96% to EUR 3.2 million (2006: EUR1.6 million). A contribution here was with income originating from the dormantparticipation in the Vienna branch of PRIVATINVEST Bank AG (a company of theAllianz Group). With this positive financial result, profit before tax waspushed 19% higher to EUR 6.9 million (2006: EUR 5.9 million).

Net profit: +20% to EUR 5.7 million

Overall, the company concluded the financial year with a record result.Despite difficult market conditions, net profit improved by 20% to EUR5.7 million (2006: EUR 4.7 million).

2008: Focus on Germany, further income and earnings growth planned

The C-QUADRAT Investment AG product pipeline is well filled with innovativeproducts. In 2008, the focus of sales activities will be Germany. In thismarket, a boom in sales of fund products is anticipated for 2008. “We nowoperate in 6 European markets with some 154 million potential customers. Oursales network has been expanded to over 35,000 advisors across Europe. Salesactivities are well-distributed across both retail and institutional customersand we deploy a balance across all the distribution channels available to us. In2008 we want to increase our fee generating assets further, thus pushing ourincome and Group results in a dynamic fashion. Further acquisitions are also notexcluded,” commented company founder and Executive Board member AlexanderSchütz on the strategy for 2008. “Many of our products demonstrated theirquality impressively over the last few weeks. Sales partners and customers haveseen that we fulfil what we promised. We have a good positioning and –despite volatile markets – look optimistically into the future.”

C-QUADRAT Investment AG’s Annual Financial Statements are available forimmediate download at www.c-quadrat.at .

C-QUADRAT- the fund company – is an independent asset manager operatingacross Europe. Founded in 1991, the company has had is own asset managementcompany with a bank license since 2003 and has been listed in the PrimeStandard of the Frankfurt Stock Exchange since November 2006. With its activityas asset manager, analysis and the management of investment funds as well asdesigning structured products, the C-QUADRAT team has made a name for itselfacross Europe. Innovative investment strategies for institutional investorsround off the product offering. Numerous internationally operating banks,insurance companies and financial service providers rely on the expertise ofC-QUADRAT.