Interhyp achieves record results in 2005

Mortgage volume more than doubled - earnings increase significantly

(Munich, 28 March 2006) Interhyp AG, Germany's largest residential mortgage broker, presents record figures in its annual financial statements for 2005.

Closed mortgage volume rose by 127% to €3.022 billion (2004: €1.322 billion), on the back of 18,273 successfully brokered mortgages with an average volume of around €165,000. Net revenues grew by 137% to €39.4 million (2004: €16.6 million), and earnings before interest and taxes (EBIT) increased by a factor of 6.8 to €12.9 million. Thus, at 32.9%, the EBIT margin relating to net revenues is already in the targeted range beyond the 30% mark (2004: 11.5%). As the result of an extraordinary tax effect, annual net income totalled €13.0 million.

"In addition to the key financials, numerous other significant milestones attest to the dynamism at Interhyp in 2005: In addition to formulating new brand identities for Interhyp and Prohyp, we opened the first Interhyp branches mid-year, and in September carried out a very successful IPO," explained Robert Haselsteiner, founder and CEO of Interhyp AG. Marcus Wolsdorf, co-founder and CEO of Interhyp, added: "We are very proud that both customers and capital market participants are placing equal trust in our business model. Our rapid growth and acceptance in the capital market underline the ongoing transition in German mortgage distribution towards the mortgage broker model."

The intermediary business, Prohyp, is also reaping the benefits of the trend towards independent mortgage advice, expanding closed mortgage volume by 197% in 2005 to €830 million (2004: €279 million). Prohyp thus contributed 27.5% to the overall volume of closed mortgages, and increased its net revenues by 216% to €8.9 million (2004: €2.8 million).

By the end of the year, Interhyp employed a workforce of 269, of whom 149 are mortgage advisors. In 2006 Interhyp plans to add between 20 and 25 mortgage consultants per quarter.

Management targets a mortgage volume of around €4.8 billion with net revenues of roughly €60 million and an EBIT of around €21 million in the current year. Building on its existing presence in Frankfurt, Hamburg, Cologne and Munich, Interhyp plans to open branches in Berlin in April  and Stuttgart in June. A branch in Dusseldorf is also scheduled to open in the second half of 2006.

About Interhyp AG:
With €3 billion in new residential mortgage volume in 2005, Interhyp is Germany’s leading independent residential mortgage broker. Interhyp combines the power of the Internet with high quality mortgage advice and the cost benefits of a direct distribution model to provide borrowers with rates which are on average 0.5% below those of traditional branch-based retail banks.

Interhyp AG shares are listed at Frankfurt Stock Exchange (SDAX) with the code IYP and the ISIN: DE 00005121701.

Press contact:
Christian Kraus, SVP Corporate Communications
Telephone +49 89 20 30 7 13 01
e-Mail: christian.kraus@interhyp.de