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Madison Property AG: Pre-sales affected by challenging market environment

Madison Property AG  / Key word(s): Change in Forecast

06.03.2012 10:15

Dissemination of a Corporate News, transmitted by DGAP - a company of
EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.

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Madison Property AG: Pre-sales affected by challenging market environment

Berlin/Frankfurt, March 06, 2012 - Due to lower than expected pre-sales in
the third quarter of the financial year 2011/12, it is likely that Chinese
property developer Madison Property AG (ISIN DE000A0V9KR3 / WKN A0V9KR /
Ticker MPD) will not meet its guidance for the full financial year. Up
until now, the guidance envisaged a turnover of RMB 1.0 billion (about EUR
104 million) and a net profit margin of 12 to 14%.

After having secured pre-sales of around 60% of the full year sales target
in the first half of the financial year 2011/2012, Madison Property
registered an additional pre-sales of less than 10% of the full year sales
target during the recent third quarter. This decrease in pre-sales resulted
from the enforced macro-control measures for the real estate market
implemented by the Chinese government. Although no signal of easing of such
measures have been noticed yet by the company, the upcoming meetings of the
National People´s Congress and the CPPCC National Committee held in March,
could lead to some degree of easing. As the construction of the real estate
projects is progressing as planned and a relaxation of the challenging
market environment might still occur, the management team is still trying
to achieve its annual targets and has decided not to publish a detailed new
guidance for the full year 2011/2012.

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Information and Explaination of the Issuer to this News:

About Madison Property AG

Madison Property AG is a German stock corporation under the laws of Germany
with its legal seat in Berlin. It is the holding company of Madison
Property Group Limited which operates as a large-scale property developer
with its local subsidiaries in China, mainly in the Shandong Province and
the municipality of Chongqing. Founded in 1998, Madison already completed
and successfully sold 17 projects/project phases. It is focused mainly on
residential properties with high quality and travel as well as leisure
properties. Madison is recognised as a Class I property developer by the
People´s Republic of China Ministry of Housing and Urban-Rural Development
and can therefore undertake projects nationwide without limitation on the
construction scale.

For further information please contact:

Kirchhoff Consult AG

Sebastian Bucher
T: [phone]
F: [phone]
E-Mail: [e-mail]

or visit www.madison-property.com

Disclaimer

This publication constitutes neither an offer to sell nor a solicitation to
buy securities of Madison Property AG.

This document is not an offer of securities for sale or a solicitation of
an offer to purchase securities in the United States. The shares of Madison
Property AG (the ´Shares´) have not been registered under the U.S.
Securities Act of 1933, as amended (the ´Securities Act´) and may not be
offered or sold in the United States unless registered under the Securities
Act or pursuant to an exemption from such registration. There will be no
public offering of the Shares in the United States and the Shares will not
be registered under the Securities Act.

This document is only being distributed to and is only directed at (i)
persons who are outside the United Kingdom or (ii) to investment
professionals falling within Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 (the ´Order´) or (iii)
high net worth entities, and other persons to whom it may lawfully be
communicated, falling within Article 49(2)(a) to (d) of the Order (all such
persons together being referred to as ´relevant persons´). The Shares are
only available to, and any invitation, offer or agreement to subscribe,
purchase or otherwise acquire such securities will be engaged in only with,
relevant persons. Any person who is not a relevant person should not act or
rely on this document or any of its contents.

06.03.2012 DGAP´s Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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