Revenues increase by 19% to ¤9.14 million - Net Profits ¤1.05 million

Corporate news announcement processed and transmitted by Hugin AS.
The issuer is solely responsible for the content of this
announcement.
----------------------------------------------------------------------
--------------

Design Hotels AG Reports Results Preliminary Annual Results

March 16, 2008

Berlin - Design Hotels AG (Regulated Market, Munich: LBA; ISIN:
DE0005141006), integrated provider of marketing and positioning
services for individually managed hotels and small hotel groups in
the New Luxury Segment, today reports its preliminary results for the
2008 financial year and the fourth quarter of 2008. Revenues for the
full year increased by 16% compared to 2007 and were therefore ahead
of expectations. Adjusted for exceptional items, both the operational
result and net profits were at last year's level.

Financial Highlights for the Design Hotels Group:

Revenues for the financial year 2008 increased by around 16% to ¤9.14
million (2007, ¤7.88 million). Revenues for the fourth quarter
increased by 29% to ¤2.86 million (2007, ¤2.23 million). All business
areas contributed to the growth. The business area Concept
Development Consulting posted for the first time significant
revenues. Booking commissions came in at ¤4.28 million (+2%) and
thereby contributed approximately half of total revenues. Marketing
Products/Consulting achieved revenues of ¤2.75 million (+51%) and
Membership Fees reached ¤2.11 million (+14%)

With 72%, the Gross Margin for the full year was slightly above last
year's (71%). For the fourth quarter the Gross Margin reached 63%,
the same as for 2007.

The EBITDA for 2008 came in at ¤1.07 million, a fall of 16% compared
to ¤1.28 for 2007. It should be noted that the 2008 EBITDA included a
one-off contribution through the collection of a previously written
off claim of ¤130,000. Last year's result included a contribution
from exceptional items for a total of ¤370,000. Adjusted for
exceptional items, this year's operational result was in line with
that for 2007. EBITDA for the fourth quarter fell by 11% to ¤254,000
(2007, ¤284,000)

The EBITDA Margin, after exceptional items, was 12% (2007, 16%). In
the fourth quarter, this margin came in at 9% (2007, 13%).

The EBIT for 2008 came in at around ¤0.91 million, falling by 19%
compared to the ¤1.13 million for 2007. For the fourth quarter, the
EBIT went down by 5% to ¤228,000 (2007, ¤240,000).

Net Profit for 2008 was ¤1.05 million as compared to ¤1.17 for 2007,
a fall by around 10%.

On the 31st of December 2008, the Company had cash and cash
equivalents of ¤2.78 million compared to ¤2.20 million on the 31st of
December 2007. Shareholders' equity increased from ¤4.73 million to
¤5.64 million.

At the end of the business year, 176 hotels (2007, 174) with 12,825
(2007, 13,256) rooms in 112 destinations and 42 countries were
affiliated with Design Hotels. While in 2007 420 hotels applied for
membership, the figure for this year was a record 469. Design Hotels
had, averaged over 2008, 57 employees (2007, 48).

Additional Notes:

CEO Claus Sendlinger commented: "With again two digit revenue growth
and a net result that, adjusted for exceptional items, was at last
year's level, we are slightly ahead of our plans for 2008. This also
means for the fourth consecutive year, our growth figures were well
above those for the market. One of the key drivers this past year has
proven to be the business area Concept Development Consulting, which
we decided to enter two years ago. While booking revenues stayed at
last year's level, mainly due to the roughly similar number of rooms
compared to last year, the business area Concept Development for the
first time posted significant revenues, thereby contributing to a
result for Marketing Products/Consulting with which we are very
happy."

"We believe that this development validates our decision to
differentiate our service offering and the resulting expansion in the
number of employees. We have therefore accepted that our bottom line
would not develop in line with revenues as the investments made form
the basis for tomorrow's growth. The same goes for our consistently
strict rules for accepting new member hotels. We have seen a net
increase in member hotels of only two in the past year, but at the
same time improved the quality of our membership through the
cancellation of non-performing relationships and the addition of 27
new properties."

"The global economic crisis will hit the tourism sector with full
force in 2009. Against this background we see a clear positioning as
the key to success. Especially in times characterized by economic
hardship, the elements of our service offering aimed at increasing
the return on investment and improving efficiency will gain in
importance for our clients. Visibility for our business is very
limited due to the current uncertainty and at present we assume a
flat revenue and profit development for 2009."

The complete and audited figures for 2008 will be published in the
second half of April 2009.

Contact:
design hotels AG
Claus Sendlinger (CEO)
Stralauer Allee 2c
10245 Berlin
Tel. +49 (0)30 88 494 00 01
Fax +49 (0)30 259 330-17
ir@designhotels.com

Schwarz Financial Communication
Frank Schwarz
Tel. +49 (0)611 17453 9811
Fax +49 (0)611 17453 9829
schwarz@schwarzfinancial.com

--- End of Message ---

Design Hotels AG
Stralauer Allee 2c Berlin Germany

WKN: 514100;
ISIN: DE0005141006;
Listed: Open Market in Frankfurter Wertpapierbörse, Freiverkehr in
Börse Berlin,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg, Regulierter
Markt in Bayerische Börse München;
Copyright © Hugin AS 2009. All rights reserved.