LAMDA Development: 3rd quarter 2005 Results in accordance with International Financial Reporting Standards - IFRS

Monday, November 28, 2005


LAMDA Development: 3rd quarter 2005 Results in accordance
with International Financial Reporting Standards (IFRS)

LAMDA Development consolidated turnover during the third quarter of 2005, amounted to € 49,940,916, marking a decrease of 10.1% compared to € 55,574,850 during the same period in 2004.

Consolidated revenue for the period amounted to € 3,547,683 compared to € 12,863,701 the same period last year.

The consolidated results after taxes and minority interests recorded a loss of € 7,932,478 compared to profits of € 4,091,614 in 2004. The basic reasons for the deterioration of the results are:

a) losses of € 5,840,000 that were sustained by the company developing Flisvos Marina, which - as previously announced - is not fully operational due to the temporary suspension of the investment programme’s construction work by the Council of State. By applying the principle of prudence, as dictated by the International Accounting Standards, the company charged its financial results by the full amount of leasing fees payable to the Tourism Development Company (ETA). However, the final amount will be determined by the arbitration that is currently in progress.

b) an increase of € 7,441,000 in expenditures (promotion of sales, advisory and legal services etc) related to the intensification of commercialization efforts for the two shopping and leisure centres in Maroussi, Athens and Pylea, Thessaloniki.

c) LAMDA Shipyards & Marine Services S.A., which is specialized in integrated ship maintenance and repair services, recorded losses of € 2,464,000 due to reduced turnover.

Summary of consolidated financial data:

(Amount in ‘000 €)9-month period 20059-month period 2004Variation
Consolidated Revenue3.54812.864-72,42%
Results Before Taxes-11.2073.610-
Results After Taxes-12.9694.330-
Results After Taxes and Minority Rights-7.9324.092-

It should be noted that the opening of the two shopping and leisure centres, Mediterranean Cosmos in Pylea, Thessaloniki and The Mall Athens in Maroussi, Attica, on October and November respectively, is expected to contribute positively to the group’s results and substantially alter the group’s risk profile. Additionally, the Management of LAMDA Development continues its efforts toward concentrating its business activities primarily in real estate development, in Greece and abroad.

LAMDA Development

LAMDA Development S.A., listed on the main market of the Athens Stock Exchange, is a holding company specializing in the investment, development and management of real estate. Combining a strong entrepreneurial drive, specialist international experience, expert management, powerful strategic allies (Deutsche Bank, EFG Bank Group, Hochtief, Bilfinger Berger, Strabag, Sonae Sierra) and with the business credibility and financial strength of the Latsis Group, LAMDA Development shapes and connects the business areas it is active in, creating growth, reaping synergies and providing value to both its clients and shareholders. LAMDA Development offers its clients a wide range of integrated business solutions and high quality services and products at competitive prices. LAMDA Development's investments include: two commercial and leisure centres with a Gross Buildable Area of 105.000 m2, four innovative residential complexes with a Gross Buildable Area of 105.000 m2 and six office buildings with a Gross Buildable Area of 70.000 m2