Summit Germany Limited ("Summit" or the "Company")

New Lease Agreements

Summit Germany Limited, the AIM-listed German commercial property investment company is pleased to update its shareholders that in two of its properties, the following progress has been made:

Following Summit's announcements on 30th January 2008 and on 22nd July 2008, according to which one of its tenants in two of its properties had gone into receivership, and that it had acquired the bank debt which financed the acquisition of the properties for a profit of €5m, the Company has signed a new triple-net lease for one of the properties. 

The new lease agreement is for an eight year period and will contribute an average net rental income of €300k p.a. In addition, the company will be compensated by the receiver with approximately €500k which includes €360k for collection of the bank guarantee related to the property and a total of €140k in cash. The new rental income together with the compensation will be equal to the rental income from this property prior to the insolvency of the original tenant.

In addition, Summit has let the majority of vacant space in its Rostock properties by signing a new lease agreement for 2,670 sqm with a governmental health insurance company. The ten year lease will contribute an average net rental income of € 507k p.a. The basic rent is €13.8 per sqm per month with additional annual charges to the tenant of 3% fixed indexation and 8% for facility management. The required investment is approximately €1m. The average rent per sqm per month of this property prior to the new lease was €8.3. 

John Lamb, Non-Executive Chairman, commented:

" The ability of Summit's Asset Managers has again been proven. In spite of the current uncertainty in the investment market, our team is still able to enhance rental income which is so crucial. 

 " We continue to maximise the upside potential of our properties by generating strong, additional cash flows and improving our average rental levels. Looking ahead, the future for the Group remains solid and we look forward to updating shareholders at the half year results."

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Date: 5th September 2008 

For further enquiries contact:

Summit Germany

John Lamb, Chairman

07802 440 714

Fairfax I.S. plc

Jeremy Porter

020 7598 5368

City Profile

William Attwell

020 7448 3244

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