Terra Firma

• Deutsche Annington pays approx. 7 bn euros including debt and provisions
• DAIG and Viterra now have a combined portfolio of about 230.000 flats

Dusseldorf, 17th May 2005 – DAIG Group acquires Viterra from E.ON AG for approx. 7 bn euros. Viterra is a leading private housing company with a portfolio of about 150,000 flats. The transaction is subject to clearance from antitrust authorities as well as approval by the E.ON supervisory board.

"Viterra and DAIG will become a leading company in Germany with respect to size, sector experience and performance. We are very well positioned to further strengthen that position", says Dr Volker Riebel, Chairman of the Management Board of DAIG. "We are committed to safeguarding tenants’ rights which have always been central to our business approach."

DAIG is owned by Terra Firma, the European private equity firm. In addition, Citigroup Property Investors (CPI) has made a significant minority investment in DAIG and will support the growth of the combined business together with Terra Firma. Terra Firma Managing Director, David Pascall, adds: "Viterra is an excellent company. Terra Firma and CPI are experienced long-term investors and we see great potential for growth for the new Group in the coming years."

DAIG and CPI plan to grow the company through investments and will continue to offer tenants the opportunity to buy their flats at attractive prices. Since 2002, DAIG has sold more than 10,000 flats primarily to tenants. This tenant privatisation programme is the most successful of its kind in Germany and will continue to be a key feature of the new Group.

DAIG has acknowledged the "Voluntary Self-Undertaking" ("Freiwillige Selbstverpflichtung") of Viterra to ensure that unit-by-unit sales of flats are conducted in a socially-acceptable manner, so that Viterra can continue current practice under new ownership. The rights of the Viterra employees, especially with regard to all employment-related rights and entitlements, and all prevailing works council agreements remain fully intact without limitations.

www.deutsche-annington.com About DAIG, Terra Firma, and Citigroup Property Investors

Deutsche Annington Immobilien Gruppe (Düsseldorf) employs some 450 staff and is a leading German housing company. The nationwide portfolio has about 80,000 flats and is based on the acquisition of 64,000 railway flats in 2001. In September 2003, DAIG acquired a majority stake in HEIMBAU AG and its 10,000 flats in Kiel. In addition, 4,500 former RWE company flats were acquired in December 2004.

Terra Firma is a European private equity firm. The current fund has concluded the acquisitions of Waste Recycling Group Limited, the landfill sites of Shanks plc, Odeon Cinemas Group (all UK) and UCI Cinemas (Europe), and of the motorway service provider Tank & Rast (Germany).

Citigroup Property Investors ("CPI") is the real estate investment management business of Citigroup, the leading global financial services company. A unit of Citigroup Alternative Investments, CPI offers institutional and individual investors the opportunity to invest with it in a series of private and public market real estate investment strategies. With more than 75 professionals, CPI manages $7 billion in real estate capital commitments through our New York, Los Angeles, London and Hong Kong offices.