Income from property management improved and CEO changeover in Castellum

  • Rental income for the period January - June 2005 amounted to SEKm

Income from property management for the period, i.e. net income
excluding changes in value and tax, amounted to SEKm 379 (353),
equivalent to SEK 9.24 (8.61) per share. The improvement is 7% and
has been achieved chiefly through a larger real estate portfolio and
lower interest rate levels.

During the period 24 properties (21) were sold for a total of SEKm
428 (417), which exceeded fair value with SEKm 61 (83) and the book
value according to earlier accounting principles by SEKm 197 (169).
During the period investments totalling SEKm 736 (869) were made, of
which SEKm 499 (713) were acquisitions and SEKm 237 (156) investments
in existing properties.

"I'm merely stating the facts that the rental market in our market
areas show a continued positive improvement. However, there must be
an improved labour-market in order for the rental market to really
get going" comments Castellum's CEO, Lars-Erik Jansson.

Lars-Erik Jansson, the present CEO, will retire as at December 31,
2005 and leaves the Board of Directors at the same date. As new CEO
from January 1, 2006 the Board of Directors has appointed the present
Deputy CEO Håkan Hellström.

"After 12 incredible years in Castellum, the last five as CEO, I will
retire at the year-end. Castellum has had a strong development during
these years and it is with great joy I pass on to Håkan Hellström who
has been with the company since the start" comments Lars-Erik

"With a well functioning strategy, a good organization and strong
finances, I'm looking forward to continue the development of
Castellum" comments Håkan Hellström.

Enclosure: Interim Report January - June 2005

Castellum is one of the major listed real estate companies in Sweden.
The value of the real estate portfolio amounts to approx. SEK 20
billion, and comprises mainly commercial properties. The real estate
portfolio is owned and managed by six wholly owned subsidiaries with
strong local roots in five growth regions: Greater Gothenburg, the
Öresund Region, Greater Stockholm, Western Småland and Mälardalen.
The Castellum share is listed on Stockholmsbörsen's O-list.

For further information, please contact
Jan Kvarnström, Chairman of the Board, mobile +49 1609 060 1899
Lars-Erik Jansson, CEO, phone +46 31 60 74 00 / mobile +46 705-92 06
Håkan Hellström, CFO/deputy CEO, phone +46 31 60 74 00 / mobile +46
705-60 74 56