In the first quarter of the 2007/08 financial year, the Arcandor Group rigorously continued its operating and strategic realignment. The three operating segments, Thomas Cook, Primondo and Karstadt were further successfully developed on the basis of their clearly defined strategy in terms of content and schedule.

Based on the 2007 calendar year (pro forma), group sales already rose to approximately €20 billion, compared to €13 billion in the previous year. This corresponds to growth of more than 50%. This growth increase is an impressive indicator of the success of the Arcandor Group’s rigorous realignment. Moreover, following the disposal of the Highstreet business share amounting to 49%, the Group will once again be free of net financial liabilities, providing it with various options for further developing the operating business models.

The sales performance in the first quarter of the 2007/08 financial year was satisfactory overall in the operating segments. The booking figures for Thomas Cook Group plc developed well. As in the previous quarter, Primondo increased sales according to plan, thus continuing its recovery. Karstadt reported a decline in sales. This is due to the radical repositioning and the special effects resulting from VAT and the absence of the unusually high sales of the previous year which resulted from the 125-year anniversary.

Arcandor, major shareholder of Thomas Cook Group plc, is highly satisfied with the current development of the tourism group. Thomas Cook Group plc, with 60% generating the highest share of Arcandor’s Group sales, is in Arcandor’s view on a good way to achieve the goals set for the financial year 2007/08. Arcandor was pleased to hear that, as announced on December 11, 2007 by Thomas Cook, bookings for the winter season were ahead of capacity across all major markets. Further information cannot be provided at date due to the stock exchange listing of Thomas Cook Group plc in London.

According to preliminary figures, in the first quarter of the 2007/08 financial year, Primondo continued successfully along the growth course initiated in the previous quarter. Adjusted sales were €1.22 billion (€1.18 billion in the previous year). This corresponds to growth of 2.9%. The continuing positive growth of the special mail-order suppliers, Quelle’s successful international business and the teleshopping and e-commerce sales, which are still growing sharply, all contributed to this. Quelle Germany considerably increased the number of new customers in comparison with the previous year and, for the first time in December 2007, generated more sales with online business than with the traditional big book. As expected, Quelle sales with universal mail order in Germany were below those of the previous year. The main reason for this was the VAT-related increased previous year’s basis which led to early purchases, particularly of products with high average tickets (durable consumer goods and electronics). Quelle Germany is now reporting a sustained positive development in terms of new customers and is entering the new calendar year for the first time since long with a higher number of active customers than in the pre-vious year. The Primondo management is confident of continuing the growth course in the quarters to come. Improved gross profit and cost structures are also expected to support the planned improvement in adjusted EBITDA during the 2007/08 financial year.

The repositioning of the Karstadt department stores and sport stores continued rigorously and rapidly. According to preliminary figures, sales at the Karstadt core department stores were €1.13 billion between October and December 2007 (€1.23 billion in the previous year). This represents a decrease of 8.4%. The comparison of sales with the previous year is impaired by the early “VAT purchases” of long-life consumer goods and the unusually high anniversary sales of the previous year. Without these special effects Karstadt sales would have been almost on the previous year’s level. The stores that have already been converted, particularly those of the Premium group, again generated above-average performance. The management assumes the Karstadt repositioning to be largely concluded during the 2007/08 financial year.

Arcandor intends to pursue the Group’s realignment during the 2007/08 financial year rig-orously and rapidly. On the basis of the repositioning to date of the core business segments, Thomas Cook, Primondo and Karstadt, the management is confident of further increasing adjusted EBITDA in the 2007/08 financial year. In parallel with the operating improvement, the Arcandor management will actively continue the market consolidation in the core business segments and sees various opportunities to further increase the value of the Arcandor Group via selected M & A activities. For this reason, achieving capital market viability in the course of the financial year 2007/08 is a priority goal for the trading segments Primondo and Karstadt.

The management expressly confirms the targets for the 2008/09 financial year. According to these, group sales are expected to exceed €23 billion and adjusted EBITDA €1.3 billion.

Contact:

Arcandor AG
Detlef Neveling
Head of Investor Relations
Phone: +49 (0)201 727 - 98 17
detlef.neveling@arcandor.com