EUROPACE: Transaction volume reaches around €200 million per sales day for the first time in the second quarter of 2017

Press release

• Total volume of transactions rises by 12.5 per cent compared with the first half of 2016

• GENOPACE and FINMAS sub-marketplaces generate disproportionately strong growth

• Overall market for mortgage finance expands only slightly year on year

According to Deutsche Bundesbank, the overall market for mortgage finance in the period January to May 2017 expanded by just 3 per cent to €98.4 billion, compared with €95.5 billion in the prior-year period. This was the case even though the market had suffered significantly in April and May of last year due to the flawed introduction of the Mortgage Credit Directive. "We expect the overall market volume for June to be lower than in the same month of last year," explains Ronald Slabke, Chief Executive Officer of Hypoport AG. "Given that there is a huge amount of demand in the housing market, this is a clear signal to politicians that a great deal more needs to be done for the private housing market."

In this market environment, EUROPACE maintained its growth trajectory and generated a transaction volume* totalling €24.0 billion in the first six months of 2017 (H1 2016: €21.4 billion, increase of 12.5 per cent).

"Taking into account that there were fewer sales days - defined as the number of working days plus half of the number of 'bridging days' (days falling between public holidays and weekends) - in the second quarter of 2017, our transaction volume per sales day rose to €199 million (Q2 2016: €176 million; Q1 2017: €187 million). EUROPACE is continuing to gain market share rapidly," adds Ronald Slabke.

The growth of the EUROPACE marketplace is still being driven by increases achieved by neutral mortgage finance distributors and by EUROPACE's success in becoming an established technology- based advisory solution for regional banks. In the first half of 2017, the FINMAS volume rose to €1.1 billion (H1 2016: €0.7 billion, increase of 58 per cent), while the volume of business concluded via

GENOPACE grew to €0.6 billion (H1 2016: €0.5 billion, increase of 32 per cent). "The German banking sector is rapidly expanding its use of digital technologies for mortgage finance," says Ronald Slabke. "EUROPACE offers the ideal sales solution for every bank and savings bank, regardless of whether they aim to grow through greater use of third-party distributors, online, in their own branches, through the sale of their own products and services or through the brokerage of third-party products."

On the product supplier side, the Sparkasse-Group and the institutions in the cooperative financial network continue to benefit disproportionately from EUROPACE's growth and are taking market share from private banks. In the first half of 2017, they generated increases of 52 per cent to €2.5 billion (H1 2016: €1.6 billion) and of 22 per cent to €1.6 billion (H1 2016: €1.3 billion) respectively.

* All figures on the volume of financial products processed include cancellations and, consequently, cannot be compared directly with the revenue figures shown, which exclude subsequent cancellations. Neither the revenue nor the earnings generated by Hypoport can be directly extrapolated from the transaction figures given above.

The Hypoport Group is a technology-based financial service provider. The business model is based on its three mutually supporting business units: Private Clients, Financial Service Providers, and Institutional Clients. All three units are engaged in the distribution of financial services, facilitated or supported by finance-technology ('fintech'). As a wholly-owned subsidiary of Hypoport, Europace AG develops and operates the web-based EUROPACE financial marketplace, which is Germany's largest platform for mortgages, building finance products and personal loans. A fully integrated system links about 400 partners - banks, insurers and financial product distributors. Several thousand users execute some 35.000 transactions worth a total of up to €4 billion on EUROPACE every month.

The Hypoport subsidiary Dr. Klein Privatkunden AG is an independent online distributor of financial products. This firm's specialists provide private clients with a full range of advisory services around mortgage finance, insurance and retirement planning. DR. KLEIN Firmenkunden AG has been a major financial service partner to housing companies and commercial property investors since 1954. Hypoport AG is headquartered in Berlin, employs about 870 people and is listed in the Prime Standard of the Frankfurt Stock Exchange. At the end of 2015 Hypoport was admitted to the SDAX.

Hypoport AG ISIN DE 0005493365

Michaela Reimann WKN 549336

Head of Investor Relations & Public Affairs Stock exchange symbol HYQ Tel: +49 (0)30 42086 1936

Email: ir@hypoport.de www.hypoport.com