Update and Notice of Delisting

25 May 2011

Speymill Deutsche Immobilien Company plc

("SDIC" or "the Company")

Update and Notification of Delisting

Speymill Deutsche Immobilien Company plc (AIM: SDIC), the pan-German residential property investment company, announces the following update.

With reference to the efforts by Citigroup Global Markets Limited ("Citigroup") to seek a permanent solution to the issues confronting the Company's debt and capital structure, an initial restructuring proposal was submitted to the banks forming the consortium in early April which provides for a fresh capital injection from new investors and also seeks to maximise recovery for the senior lenders. Citigroup is awaiting feedback to that proposal and will provide further updates as and when necessary.

While these negotiations continue, the Company will not be in a position to release its results for the six months to 31 December 2010 (the "Interim Results") in the foreseeable future as required under Rule 18 of the AIM Rules for Companies and the shares will remain suspended.

Since trading in the Company's shares will have been suspended for six months, under Rule 41 of the AIM Rules for Companies, the admission to trading on AIM of the Company's shares will be cancelled with effect from 7:00am on Tuesday, 31 May 2011 ("Delisting"). This is as expected, and will also save the Company considerable costs on an ongoing basis.

Shareholders are advised that, with effect from Delisting, Smith & Williamson Corporate Finance Limited will no longer be retained by the Company as nominated adviser. Fairfax I.S. PLC ("Fairfax") has agreed to create and maintain a matched bargain settlement facility for the Company. Under this facility shareholders or persons wishing to acquire shares will be able to leave an indication with Fairfax that they are prepared to buy or sell at an agreed price. In the event that Fairfax is able to match that order with an opposite sell or buy instruction, Fairfax will contact both parties and then effect the order.

However, following Delisting, shareholders who wish to find out further information on the Company are advised to contact Vincent Campbell or Nigel Caine, as set out below, or visit the Company's website where operational updates will be made available.

The Company remains confident that a proposal satisfactory to all stakeholders will be adopted, in due course.

For more information, please visit http://www.speymilldeutsche.com or contact: