Gothenburg, July 19, 2005

Income from property management improved and CEO changeover in Castellum

Rental income for the period January - June 2005 amounted to SEKm 942 (SEKm 915 corresponding period previous year).

Net income after tax for the period amounted to SEKm 546 (443) equivalent to SEK 13.32 (10.80) per share.

Income from property management improved by 7% to SEKm 379 (353) equivalent to SEK 9.24 (8.61) per share.

Lars-Erik Jansson, CEO, retires at the year-end and is replaced by the present Deputy CEO, Håkan Hellström.

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 Jansson.

"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 70

Håkan Hellström, CFO/deputy CEO, phone +46 31 60 74 00 / mobile +46 705-60 74 56