Growth in income from property management and good net leasing but continued write downs on properties

  • Rental income for the period January - June 2008 amounted to SEKm
   * Net income after tax for the period amounted to SEKm 49 (674),
     equivalent to SEK 0.30 (4.11) per share.
   * Income from property management improved by 7 % to SEKm 473
     (442), equivalent to SEK 2.88 (2.70) per share.
   * The investments amounted to SEKm 1,582 (1,492) of which SEKm 870
     (995) refer to acquisitions and SEKm 712 (497) new construction,
     extensions and refurbishments.

Income from property management for the period, i.e. net income
excluding changes in value and tax, amounted to SEKm 473 (442),
equivalent to SEK 2.88 (2.70) per share. The improvement is 7% and is
due to higher rental income and the effect of investments made but
has also been limited by increased interest rate costs.

The net leasing amounted to SEKm 62 (58).

In order to show the uncertainty seen on the real estate market the
required yield in the internal valuation has been increased also in
the second quarter. The value of the properties have been reduced
with SEKm -467 (374) in total. The changes in value on derivatives
amounted to SEKm 60 (120). Net income for the period was SEKm 49
(674), equivalent to SEK 0.30 (4.11) per share.

"The net leasing and pace of investment continued to be on a high
level in Castellum. Furthermore Castellum has during the second
quarter, increased the long term credit facilities with
SEK 2 billions to secure the possibility for a continued high pace of
investments in an interesting market situation." comments Castellum's
CEO, Håkan Hellström

Enclosure: Interim Report January - June 2008

Castellum is one of the major listed real estate companies in Sweden.
The fair value of the real estate portfolio amounts to approx. SEK 29
billion, and comprises 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, Mälardalen and Eastern Götaland.
Castellum is listed on OMX Nordic Exchange Large Cap.

For further information, please contact
Håkan Hellström, CEO, phone +46 31 60 74 00 / mobile +46 705-60 74 56
Ulrika Danielsson, Finance Director, phone +46 31 60 74 00 / mobile +
46 706-47 12 61

www.castellum.se

Castellum AB (publ) discloses the information provided herein
pursuant to the Securities Markets Act and/or the Financial
Instruments Trading Act.