Reported via StockWise to the Copenhagen Stock Exchange on 28 February 2007 In August 2006, the Supervisory Board decided to strengthen the information to the shareholders and the market with newsletters (Q1 News and Q3 News) for the quarters in which the Group does not publish announcement of interim or full-year financial performance. Accordingly, the following is a short briefing about the Group's activities in the first quarter of the financial year 2006/07 and subsequently: General Meeting Keops A/S held the Annual General Meeting on 26 January 2007 in Keops Huset. For the first time, the General Meeting was also filmed and broadcast live on the Company's website. The Supervisory Board Chairman Jørgen Basso Larsen made a verbal review which was adopted by the General Meeting. The General Meeting also unanimously adopted the annual report presented for 2005/06, the Supervisory Board's recommendation not to distribute dividends as well as other recommendations made by the Supervisory Board. New Supervisory Board After the General Meeting, the newly elected Supervisory Board constituted itself, so that it now consists of: • Executive Officer Steen Hundevad Knusen (new election), Chairman • Director Skarphédinn Berg Steinarsson (re-election), Vice-Chairman • Director Jørgen Basso Larsen (re-election) • General Manager Eiríkur S. Jóhannsson (re-election) • Professor Thomas Plenborg (new election) • CEO Jesper Eigen Møller (new election) Status of six-point plan In December, Keops' Supervisory Board adopted the so-called six-point plan, the purpose of which is to consolidate, focus and increase professionalism of Keops and thereby ensure a solid foundation for the Group's continued development. The implementation of this plan comprises: • strengthening of corporate governance • consolidation • geographic and product focus • separation of Development into an independent unit • simplifying and focusing the organisation • preparation of a five-year strategy In December 2006 and January 2007, a number of steps were taken to achieve improved compliance with guidelines of good corporate governance. Most recently, after the election of the new Supervisory Board, an audit committee has been appointed, which is to ensure that financial reporting, risk management and control environment meet relevant standards and rules. The audit committee consists of: • Director Jørgen Basso Larsen • Professor Thomas Plenborg As a part of the consolidation, a number of the Group's property portfolios have been designated as ready for sale. There is contact to a number of interested acquirers, and the sales process follows the determined plan. If sale is realised as planned, the cash flow proceeds at Group level are expected to be of a size exceeding the Parent's external interest-bearing debt as previously informed in notice to the stock exchange no. 286 dated 14 January 2007. In connection with the geographic and product focus of the Group's activities, Keops' Spanish residential project has been sold. This sale releases a three-digit million figure in favour of Keops, and the selling price is based on Keops' total investment in the project plus a satisfactory return. The continued work on the project and 13 employees were transferred to the acquirer in the beginning of 2007. By the beginning of 2007, the business area Development has been separated into a more independent unit, which i.a. results in adjustment of the organisation to be equipped for future challenges and a physical separation of this business from the rest of the Group during 2007. In this connection, it has been decided that the remaining part of Keops Group will move to new headquarters in Holte after the summer of 2007. As a part of the general simplifying and focusing of the Group, the organisation has been strengthened and structured in a simplified manner in January 2007. Preparation of a five-year strategy for the Group has also been initiated with the involvement of a number of the Group's key employees. Asset Management By the end of the first quarter of 2006/07, Keops Asset Management handles the operation of the Group's property companies in the Nordic region with a total of 497 properties at a total carrying amount of DKK 21.7 billion at 31 December 2006. Among these are the properties in two portfolios acquired in the first quarter of 2006/07: Firstly, the so-called Nordic Light portfolio with 37 commercial properties located in Norwegian, Swedish and Finnish provincial towns and with the Nordea group as largest tenant. The Group acquired this portfolio in October 2006 at approx. DKK 1.6 billion including costs. Secondly, the so far largest portfolio acquired by the Group, i.e. the Sverige III portfolio, which consists of 172 commercial properties located across Sweden. This portfolio was acquired in November 2006 at approx. DKK 5.4 billion including costs. In order to ensure the continued strategic management and financial control of the growing number of property companies in the Group, the organisation has been strengthened, especially Keops Asset Management in Sweden, where several new employees were employed in the first quarter. Investment After a period of handling very large acquisitions of property portfolios for the Group, in the first quarter of 2006/07, Keops Investment has focused on mediation projects. A total of three projects have been mediated at a project total of DKK 629 million. In the first half of the second quarter of the period, further six property investments have been marketed with a project total of DKK 1.3 billion. Among these are two hotel properties located in Northampton and Cardiff, which means that after a few years' pause, Keops is again active on the British property market. Development - briefly on selected projects Hillerød Port The bank, Sydbank, moved in on 1 February 2007, the bank, Svenska Handelsbanken, will be moving in during the spring, and a conditional agreement has been concluded with the Danish National Courts Administration as to renting the remaining areas on a 20-year lease. Moving in is expected on 1 February 2008. Furthermore, the first hole has been dug for the new construction of Hillerød Port, which will be an entirely new office building of approx. 1,600 sqm. The project has been sold in advance. Næstved Kaserne A conditional agreement has been concluded with the Danish National Courts Administration as to renting the refurbished barracks, Næstved Kaserne, on a 20-year lease. The tenancy is of approx. 6,000 sqm., and moving in is expected on 1 May 2008. Holbæk Rådhus Kim Utzon Arkitekter have drawn the new town hall of Holbæk, where the digging of stage 1 was initiated around the turn of the year, and the construction is expected completed on 1 December 2007. Galleri K In Galleri K, the last rental agreements have been concluded on i.a. letting out of the basement floor. RO's Torv The expansion of RO's Torv proceeds as planned. After completed refurbishment, the centre will accommodate 96 shops, 84,000 square metres and 1,200 parking spots. Christianshave, Hillerød In Christianshave, all 61 owner-occupied flats have been sold, and the first residents moved in on 1 February 2007. The residents of 2nd stage will be moving in on 1 March 2007, 3rd stage on 1 May 2007. Project total of approx. DKK 175 million. Mølledammen, Kokkedal The last residents will be moving into Mølledammen during February 2007, after which the project with a total of 72 flats has been sold and handed over. Now, only establishment of miscellaneous outdoor areas remains, such as square, parking and planting. Project total of approx. DKK 160 million. Outlook Management maintains the most recently reported expectations of Keops Group's total consolidated profit before tax for this financial year. Expectations of profit before tax for 2006/07 accordingly constitute DKK 500-700 million. The expectations of profit include value adjustments of properties and debt of a total of DKK 170 million. Please address questions relating to this Notice to Head of Communications Susanne Lindø on tel. +45 3341 0000.