Deutsche Börse plans new office building in Eschborn

11 January 2008

Deutsche Börse is planning to move its staff, currently based in Frankfurt-Hausen, to the neighboring town of Eschborn. This was decided by the Executive Board of Deutsche Börse AG on Friday. A modern new building is to be built by summer 2010, which Deutsche Börse will then rent. As early as the second quarter of 2008, around 1000 staff are to move temporarily to an existing building in Eschborn. The move will mean a significant reduction in the company’s trade tax burden and in its building occupancy costs. The company’s registered office will remain in Frankfurt, as will the trading floor of the Frankfurt Stock Exchange, located in the Alte Börse in Frankfurt City Centre.

Deutsche Börse anticipates that this move will lead to a further reduction in its tax rate. The relocation, along with the takeover of International Securities Exchange ISE and the effects of the corporate tax reform in Germany, are expected to result in a tax rate of between 25 and 27 percent in 2010. The company expects to achieve a tax rate of under 30 percent already for 2008, compared with the previous estimate of 31 to 33 percent.

As a result, Deutsche Börse will be able to achieve a significant improvement in future earnings despite the costs incurred particularly in connection with the relocations and the planning work for the new building.

“The reduction in the tax rate constitutes a further structural measure aimed at strengthening our international competitiveness. It is part of a strategy to improve our market position, which has already optimized our capital structure and improved our cost efficiency. This optimization goes hand in hand with the obvious advantages a new cutting-edge building can offer staff”, said CEO Reto Francioni.

The lease agreement for the current office building in the Hausen district of Frankfurt, which Deutsche Börse has occupied since 2000, will expire in 2010. The new building will be tailored to the needs of Deutsche Börse. It is to meet the latest building and information technology requirements and be decidedly more energy-efficient than the old building. Overall, the new improved building will thus lead to a reduction in building occupancy costs from 2010. The initial plans for the new building are already on the drawing board.

Deutsche Börse Group has around 3000 staff worldwide, the majority of whom are based in Germany and Luxembourg. Other key locations are Chicago, London, New York and Zurich. The Group also has representative offices in Hong Kong, Moscow, Paris, Singapore and Tokyo, and plans to open a representative office in Beijing.

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