Announcement

Following a recent press release on the newspaper “XRIMATISTIRIO” with title “To the court LAMDA Dev. - MICHANIKI S.A.” and for the correct information of the investing public, the Company announces the following:

Between PYLEA S.A. (subsidiary of LAMDA Development S.A.) and the construction company MICHANIKI S.A., there is a dispute over the assessment and the quality of construction works that were conducted by MICHANIKI SA, as well as over the responsible party for the significant delays of the contractual deadlines for completing the works in the Commercial Center “Mediterranean Cosmos” in Pylea.

So far, for only a part of its claims, “PYLEA SA” has filed to the proper courts, lawsuits for an amount of € 15,6 million, whereas it has already asked and succeeded the forfeiture of 24 letter of guarantees totaling € 6,9 million.

Related information is included in the Condensed Consolidated Interim Financial Statements of the 3rd Quarter 2007 (note 12, page 18) available at LAMDA Development (www.lamdadev.com) and Athens Exchange (www.athex.gr) sites.