Eurazeo: ANF: Launch of a Capital Increase

Regulatory News: ANF, a listed property investment company (société d'investissements immobiliers cotée, or SIIC), launches a capital increase without pre-emptive rights and with a priority subscription period for an amount of EUR 291,419,552 by means of an issuance of 6,200,416 new shares at a subscription price of EUR 47 per new share. The issued amount can be increased to a maximum amount of EUR 335,132,466 in the event of full exercise of the Extension Facility. The capital increase will partially finance the acquisition of a portfolio of 159 hotels operated by the B&B Group. On 24 July 2007, ANF announced that it had signed a protocol agreement to purchase a portfolio of 159 hotels operated by the B&B Group under the name "B&B Hotels” and "Villages Hôtel” for the sum of EUR 471 million including fees and transfer taxes. This acquisition is scheduled for completion on 5 November 2007. The properties for which the conditions precedent have not been met by that date will be transferred in mid-December 2007. The purpose of the offering is to enable the Company to finance approximately 60% of the purchase price and to strengthen its equity base in order to pursue its expansion strategy. The main terms of the proposed transaction are as follows: - a EUR 291,419,552 capital increase (including the issue premium) by means of an issuance of 6,200,416 new shares for a subscription price of EUR 47 per share, without pre-emptive rights. - the issuance can be increased to a maximum amount of EUR 335,132,466 (including the issuance premium) in the event of full exercise of the Extension Facility representing up to 15% of the number of shares initially offered. - ANF shareholders as of 16 October 2007 will be granted a non-negotiable, non-transferable priority subscription right on an absolute basis for a period of three trading days, to subscribe for 3 new shares for every 7 existing shares. This entitlement ratio was calculated on the basis of the maximum amount of the issuance including the Extension Facility. Subscriptions made during the priority subscription period will be accepted from 17 October 2007 to 19 October 2007, inclusive. - new shares other than those that have been subscribed for by shareholders during their absolute priority period will be placed, between 17 October 2007 and 19 October 2007 inclusive, with individuals or legal entities in France and with institutional investors in France and outside France, with the notable exception of the United States of America. The private placement with institutional investors may be closed early without notice. - the settlement, delivery and listing of the new shares on Eurolist by Euronext Paris is scheduled to occur on 25 October 2007. Eurazeo (Paris:RF), the main shareholder of ANF, which, through its subsidiary Immobilière Bingen, owns 89.8% of ANF’s capital, has indicated to the Company that it does not intend to subscribe for the new issuance in order to reduce its participation below 60% before January 1 2009 in order to comply with SIIC 4 regulations’ recent modifications. Six investors (Generali, Taube Hodson Stonex, Caisses d’Epargne Provence-Alpes-Corse, Caisse Nationale des Caisses d’Epargne, CNP Assurances and Cardif Assurance Vie) have undertaken to the Company to subscribe for shares in an amount of EUR 239,5 million (EUR 241,7 million if the Extension Facility is exercised). BNP Paribas is Lead Manager – Bookrunner of the issuance. The prospectus was approved by the French financial markets authority ("AMF”) on 16 October 2007 under visa number 07-359. It comprises the ANF reference document filed with the AMF on 10 August 2007 under number R.07-136 ("Reference Document”) and the Securities Note (which contains a summary of the prospectus) as of 16 October 2007. ANF ANF is a listed property investment company (société d'investissements immobiliers cotée, or SIIC). It is one of the leading French companies in the sector in terms of market capitalization. ANF operates a real estate business involving the ownership and management of commercial, office and residential rental properties, located mainly in the Lyon and Marseille city centres. Its property portfolio was valued at EUR 757 million at 30 June 2007 and totalled 373,000 sq. m., including 120,000 sq. m. of development projects to be delivered between 2007 and 2012. This product mix provides both profitability and security by combining active management of commercial assets with the stability of recurring income from residential properties. Information for the public The prospectus was approved by the French Financial Markets Authority ("AMF”) on 16 October 2007 under visa number 07-359. Copies can be obtained free of charge from ANF and the financial institutions authorised to receive applications. The prospectus may also be consulted on the AMF’s website (www.amf-France.org) and on ANF’s website (www.anf-immobilier.com). The prospectus comprises the ANF reference document filed with the AMF on 10 August 2007 under number R.07-136 ("Reference Document”) and the Securities Note which contains a summary of the prospectus. ANF advises investors to consider the risk factors contained in the Prospectus approved by the French Financial Markets Authority. A legal notice will be published in the Bulletin des Annonces Légales Obligatoires on 19 October 2007. This press release must not be published, distributed or disseminated, directly or indirectly, in the United States (including its territories and possessions, each State of the United States and the District of Columbia), Australia, Canada, or Japan. This press release and the information it contains are not an offer to sell or to subscribe or a solicitation of an order to buy or subscribe for securities in any country, in particular in the United States. The securities described in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended ("Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement under the Securities Act. There will be no public offer in the United States. No public offering is being made in the United Kingdom. Within the United Kingdom this press release is only directed at persons who have professional experience in matters relating to investments falling within Article 19(1) of the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order”) or who fall within Article 49(1) of the Order or are other persons to whom ANF may otherwise lawfully communicate an invitation or inducement to engage in investment activity in accordance with the Order (all such persons together being referred to as "relevant persons”). This press release must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this press release relates is available only to relevant persons and will be engaged in only with relevant persons. The distribution of this press release in certain countries may constitute a violation of applicable law. Therefore, anyone who is physically present in such jurisdictions where this press release is distributed must inform himself and comply with such laws and regulations.