Increase scope of cash equity

In response to strong demand, Bau-Verein zu Hamburg Aktien-Gesellschaft has passed a resolution to increase the scope of the cash equity issue by making additional use of its authorized capital:

Acting with the approval of the Supervisory Board, Bau-Verein zu Hamburg Aktien-Gesellschaft - WKN 517 900 (hereinafter referred to as "Bau-Verein") passed a resolution to increase the cash equity issue previously resolved and announced on February 13, 2006 by an additional 1,000,000 shares to a new total of up to 4,000,000 new shares from its authorized capital with pre-emptive shareholder subscription rights. As a result, Bau-Verein´s share capital will increase by up to € 12,000,000 from a current € 50,819,982 to up to € 62,819,982. The issue price is unchanged at € 4.75 per new share. The subscription rate is one-for-four. If the new shares are not fully subscribed by the existing shareholders, the remaining issue will be offered to investors for subscription in the form of a private placement.

The subscription period for the new shares is expected to run from February 22, 2006 until March 8, 2006. Trading in the subscription rights will be excluded. The new shares are to be listed after the completion, approval and admission of the listing prospectus, which is expected for the end of May 2006. The shares will be fully dividend-entitled as of January 1, 2006.

As a result, Bau-Verein will receive proceeds of around € 19 million from the
equity issue.

The Management Board

Hamburg, February 16, 2006