Fiscal Year 2008 Financial Results based on I.F.R.S.

FINANCIAL RESULTS
-

Net Asset Value before taxes (NAV) increased by 7% reaching €485,8 million compared to €454,6 million last year. This increase is deemed quite satisfactory given the slowdown in the global economy in 2008. Net profit after tax and minority interest reached €60,1 million (small increase by 1%).

Group recurring EBITDA has increased significantly by 25% compared to last year as it reached €29,1 million. Such growth is primarily attributed to the improved operational performance as a result of the increased acceptance by the consumer public of our concept of large commercial and leisure centers, and also the turnaround in Flisvos Marina profitability.

EBITDA per asset:

million)

2008

2007

Change

“The Mall Athens”

32

29,5

8,5%

“Mediterranean Cosmos”

14,1

13,0

8,5%

“Golden Hall”

1

-

-

Flisvos Marina

3,2

-0,8

-

Offices

3,8

3,9

-2,5%

TOTAL

54,1

45,6

18,6%

Figures refer to 100% operation (not consolidated ones).

The performance of the well established shopping centers, “The Mall Athens” and “Mediterranean Cosmos” improved further in 2008. The increase in shopkeepers’ turnover was 4% and 10% in the Mall Athens and Mediterranean Cosmos respectively, despite the drop in retail sales that was displayed in Greece throughout 2008. The footfall for The Mall Athens reached about 12 million visitors, 10% up from last year, whereas Mediterranean Cosmos had about 8,5 million visitors, 5% up from year 2007.

The operation of our new Shopping and Business Center “Golden Hall” during December, in the former IBC premises, can be characterized quite successful. “Golden Hall” opened its gates to the public on 28 November 2008 and is 100% leased to well-established and renowned international and Greek brand names. It hosts 131 shops within the 41.000 GLA and also offers 1.400 underground parking spaces. The completion of the specific Shopping Center not only contributes to the increase in the Net Asset Value but also affects positively the Group’s Recurring EBITDA.

The first indications in 2009 of the operational performance of our investment properties are positive, despite the global financial turmoil. More specifically, “The Mall Athens” and “Mediterranean Cosmos” have marked a 20% and 5% increase in the visitors’ traffic respectively, in the first two months of the year compared to the equivalent period last year. In addition, shopkeepers’ turnover is satisfactory, demonstrating an average increase of 1% compared to last year.

As far as Golden Hall is concerned, during the first three months of operation (December 2008-February 2009), shopkeepers’ sales amounted to €42 million approximately, within our initial forecasts.

The increase in Flisvos Marina profitability should also be noted as 2008 was the first year with positive recurring EBITDA of €3,2 million. Both the marine and land development site activities are 100% leased. The Marina has 250 docking spots and 36 tenants. Visitor traffic in Marina’s land development of 3.000 sq.m. GLA, is very satisfactory, turning the Marina into a visitors’ destination point. Total turnover reached €11,9 million, the majority of which (€9,4 million) was birthing revenues.

Consolidated net profit after tax and minority interest reached €60,1 million compared to €59,6 million in 2007. Apart from the €17,4 million decrease in fair value gains of investment properties compared to the previous year, results were also negatively affected by the increase in non-capitalized expenses of Golden Hall as well as by the increase of net financial expense by €5,8 million due to higher loan volume as a result of the materialization of the Group’s investment plan. Net profit was positively affected by the decrease in corporate income taxes by approximately €13 million because of the decrease in tax rates from 25% to 20% within the next five-year period.

Summary of consolidated financial figures

million)

2008

2007

% change

Net Asset Value (NAV)

485,8

454,6

6,9%

Profit after tax and minority interest

60,1

59,6

1,0%

Fair Value Gains

48,2

65,6

-26,6%

E.B.I.T.D.A.

93,3

110,4

-15,5%

It must be noted that revaluation gains of investment properties reached €48,2 million (including Golden Hall financial gains) compared to €65,6 million in 2007. Following the global trend of increasing cap rates, the valuation of our investment properties have an average net initial yield of 7,2% for both the Shopping Centers and the Office buildings. These yields can be compared to 6,4% and 6,6% respectively that prevailed in the first semester of 2008 and are deemed conservative given the quality of assets, leasing terms, as well as tenants’ credibility.

The net Loan to Value ratio of the Group’s investment portfolio was 46%, a figure that implies the conservative approach of our company in the use of loans. As we speak, the specific ratio is down to 39%. The Group has secured increased liquidity of €177 million cash at the end of 2008 (which was further increased to €255 million in the first two months of 2009). This liquidity derives both from own funds as well as from loans to finance the investment plan and potential investment opportunities that may arise in the near future as a result of the economic downturn.

Finally LAMDA Development consolidated Group Turnover is comprised of the following segments:

(€ million)

Real Estate Investment

Real Estate Sales

Other Real Estate Services

TOTAL

2008

60,6

5,5

8,7

74,8

2007

47,4

28,1

11,4

86,9

The reduction in the consolidated group turnover is mainly attributed to the office building sale by the affiliate company Lamda Olympia Village in 2007.

The Group’s major growth and strategic goals can be summarized as follows:

· Further improvement in the operating performance of the existing developments.

· Review of the Group’s strategy towards new developments in view of the recent market developments in our target area of interest.

· Pursue a strategy of new developments in Greece regarding commercial uses (malls, outlets, big boxes) as well as, in the long-run, high quality second home residential developments. The company will pursue its participation in Public Private Partnerships (PPPs).

· Further exploit international and local corporate strategic alliances and carefully exploit opportunities in new markets.

The summary of the financial figures of the year 2008 will be published in the newspapers Ethnos and Naftemporiki on 27/03/2009 and will be posted on the company’s website (www.lamda-development.net) and on the website of the Athens Exchange.