Gothenburg July 18th, 2007 

Growth in Castellum’s income from property management 6%

Rental income for the period January – June 2007 amounted to SEKm 1,094 (SEKm 984 corresponding period previous year). 

Net income after tax for the year amounted to SEKm 674 (668), equivalent to SEK 4.11 (4.07) per share. 

Income from property management improved by 6% to SEKm 442 (417), equivalent to SEK 2.70 (2.54) per share. 

Net leasing has continued its strong trend during the period and amounted to SEKm 58 (41). 

The level of investments has remained high during the period and was SEKm 1,492 (834). 

Income from property management for the period, i.e. net income excluding changes in value and tax, amounted to SEKm 442 (417), equivalent to SEK 2.70 (2.54) per share. The improvement amounts to 6%. 

During the period changes in value on properties and derivatives amounted to, respectively SEKm 374 (325) and SEKm 120 (168). After deduction for tax of SEKm 262 (242) net income for the period was SEKm 674 (668), equivalent to SEK 4.11 (4.07) per share. 

During the period investments totalling SEKm 1,492 (834) were made, of which SEKm 995 (361) were acquisitions and SEKm 497 (473) new construction, extensions and refurbishment. Further, 2 (7) properties were sold for a total of SEKm 6 (126) which gave SEKm 2 (29) in realized result. 

"The project portfolio has a positive development with many major and minor projects which in the long run will improve income from property management" comments Castellum’s CEO, Håkan Hellström. "In the short term we now see negative effects of increasing market interest rates" adds Håkan Hellström. 

Enclosure:

Half-year Report January – June 2007

Castellum is one of the major listed real estate companies in Sweden. The fair value of the real estate portfolio amounts to over SEK 26 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 in Stockholm.

For further information, please contact
Håkan Hellström, CEO, phone+46 31 60 74 00 7 mobile +46 705-60 74 56