April 13, 2007

Deutsche Bank initiates coverage of realestate.com.au

Deutsche Bank has initiated coverage of online property classifieds stock, realestate.com.au (ASX: REA), with a Buy recommendation.

Research analyst, Andrew Anagnostellis initiated coverage with an A$6.30 twelve month price target.

Mr Anagnostellis said “Realestate.com.au has almost twice the number of users than its nearest competitor, making it the platform of choice for both buyers of houses and advertisers.

“The company has one of the highest exposures to online advertising in the Australian stock market, and is well positioned to benefit from the structural shift to on-line advertising.

“We forecast underlying FY07 EBITDA growth of 55 percent from the Australian operations, and expect group EBITDA to increase by over 200 percent in FY07 to $52 million in FY09,” he noted.

Realestate.com.au provides residential and commercial online property classifieds, and real estate agent back office solutions. The company is dominant in the rapidly growing Australian on-line classified market, with a 90 percent share of Australian real estate agents and a 59 percent share of unique browsers.

Online advertising in Australia has experienced unprecedented growth over the past three years, with a major structural change underway as advertising dollars shift from traditional platforms into new media. In 2006, total online advertising grew by 61 percent to reach A$1 billion, which represented 9.5 percent of overall Australian advertising revenues.

With its established leadership in Australia, REA has embarked upon an international expansion plan focused on the United Kingdom and Europe.

News Corporation holds a controlling stake of 58 percent in REA, and is its joint venture partner in Europe.

For further information, please call:

Cathy Knezevic
+61 2 8258 2792


Kate Abrahams
+61 2 8258 2416

About Deutsche Bank

Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With EUR 1,126 billion in assets and 68,849 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.