Gagfah S.A. : Gerhard Zeiler to Become New Chairman of GAGFAH S.A.

Press Release: March 06, 2014
GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg

ISIN: LU0269583422
Frankfurt Stock Exchange (Ticker Symbol: GFJ)
Regulated Market (Prime Standard)

Gerhard Zeiler to Become New Chairman of GAGFAH S.A.

- Change comes in the context of the repositioning of the company and the increased freefloat

- Number of Fortress-affiliated Board Members reduced to two from formerly three

- Current Chairman Jonathan Ashley intends to resign from the Board on March 25

Luxembourg, March 06, 2014 - GAGFAH S.A. and Gerhard Zeiler have agreed for Mr. Zeiler to become new Member and Chairman of the Board of Directors of GAGFAH S.A. Austrian-native Gerhard Zeiler is an internationally renowned media manager and currently serves as President of Turner Broadcasting System International, a Time Warner Company. Prior to his current position, Mr. Zeiler held leading positions within the RTL Group, Europe's leading entertainment network, and between 2003 and 2012 was the CEO of RTL Group and Member of the Executive Board of Bertelsmann Group.

Gerhard Zeiler commented: "I am truly excited to join GAGFAH S.A. as Member and Chairman of the Board. I think GAGFAH's turnaround last year was impressive by any standard, and there is tremendous opportunity for this company in the time ahead. I am looking forward to adding my experience for the benefit of shareholders and all other stakeholders."

Within the past few months, several important strategic decisions have been taken to sharpen GAGFAH's strategy back more onto the operating business and to reposition the company as an independent, leading listed player in the German residential sector. The recent milestones include the portfolio strategy with a focus on the 30 largest cities, the development of a EUR250 million value-enhancing investment program, the initiation of an operational improvement program and the selling of a total of 35 million GAGFAH shares by Fortress in the second half of 2013, reducing their stake from more than 60% down to about 41%.

In light of these developments, the Board of Directors feels that now is the right time to make the change within the Board, and Mr. Zeiler's joining the Board reduces the number of Fortress-affiliated Board Members from three to two, as Mr. Zeiler will succeed Fortress affiliate Jonathan Ashley, who intends to resign from the Board on March 25, 2014. Mr. Ashley played an important role in the company's turnaround in 2013, most namely through his support and expertise in last year's refinancings.

Contact
GAGFAH S.A.
Investor Relations
Rene Hoffmann
2-4, rue Beck
L-1222 Luxembourg
Tel.: +352 266 366 21
rhoffmann@gagfah.com
www.gagfah.com
R.C.S. Luxembourg B 109.526

Media
Dirk T. Schmitt
+49 175 721 4836
dschmitt@gagfah.de

About GAGFAH S.A.

GAGFAH S.A. is a joint stock corporation organized under the laws of the Grand Duchy of Luxembourg qualifying as a securitization company under the Luxembourg Securitization Law of March 22, 2004. The core business of GAGFAH S.A.'s operating subsidiaries is the ownership and management of a residential property portfolio located in Germany.

GAGFAH is a leading owner and operator of residential real estate in Germany. Our portfolio includes about 144,000 own residential units that are mostly located in the large German cities and their respective commuter belts. We believe that our size, our significant presence in the key residential markets and our scalable operating platform make us one of the leading providers of affordable housing for low- to medium- income households in Germany. Our operating subsidiaries are full-scale service providers for a broad range of property and facility management services.

Our objective is to generate shareholder value through sustainable and growing cash flows, increasing net asset value and sustainable dividends by efficiently managing our portfolio, carrying out value-enhancing property investments, pursuing accretive growth opportunities, and realizing value through selected asset sales.