Consolidated loss of some 50 million euros in financial year 2007/2008 due to deteriorated stock market trend

Announcement consistent with § 15 WpHG (German Securities Trading Act)
Deutsche Beteiligungs AG, WKN 550 810 / ISIN DE0005508105

Deutsche Beteiligungs AG expects to post a consolidated loss of approximately 50 million euros for financial year 2007/2008 (1 November to 31 October), as shown by an initial unaudited calculation in conjunction with the annual closing.

The loss is due to the recent deterioration of valuation multiples on the capital markets. These multiples constitute a major basis for enterprise valuations that Deutsche Beteiligungs AG performs in conformity with the IFRS. Changes to these valuations are recorded through profit or loss at each quarter. The consolidated loss would lead to a decline in net asset value per share of about 3.65 euros to approximately 18.00 euros per share; shares in Deutsche Beteiligungs AG were traded yesterday for 10.15 euros (Xetra closing quotation).

The impact of current capital market conditions on the results of Deutsche Beteiligungs AG is particularly evidenced by the value of its quoted investment in the portfolio, Homag Group AG. This investment is valued at its stock market quotation at each closing date. Over the course of the financial year, the price of Homag shares fell from 28.14 euros to 9.07 euros. That equates to a negative valuation effect on the consolidated result of about 48 million euros, of which 22 million euros are attributable to the fourth quarter (1 August to 31 October). At 31 October 2008, the multiples used to value portfolio companies operating in the mechanical and industrial engineering sectors were 40 percent lower than the ones that were relevant a year ago; these multiples have plunged particularly sharply since the credit market crisis began to peak in mid-September. The portfolio companies have been affected to differing degrees by current cyclical changes and implications of an upcoming recession. In total, they still made good progress in 2008. This, however, did not compensate the negative impact of the deterioration in valuation conditions.

The expected consolidated loss for financial year 2007/2008 primarily stems from unrealised value changes; it has no effects on the Company’s high level of liquidity totalling some 105 million euros.

The Board of Management
Frankfurt am Main, 7 November 2008