Sales Agreement HSBC - The Mall Athens

Announcement

Following the signature of the Heads of Terms, which is referred to the company’s announcement to the A.S.E. on the 14/7/2006, LAMDA Development is announcing the conclusion with HSBC LUXEMBOURG SARL of the Sales and Purchase Agreement of 50% of its participation in the commercial and leisure center The Mall Athens, which is owned by its subsidiary LAMDA Olympia Village S.A.

The transfer of shares is expected to be concluded following the completion of the conditions of the Sale and Purchase Agreement, among which is the granting of the necessary approvals from the authorities.

Specifically, following the completion of the transaction, HSBC LUXEMBOURG SARL will own 13,006,105 shares of LAMDA Olympia Village S.A., which represent 49.239% of the company’s share capital.

Regarding the financial elements of the transaction, we refer to the company’s announcement of the 14/7/2006.