Third quarter 2006 Financial Results in accordance with IFRS

LAMDA Development: Third Quarter 2006 Financial Results in accordance with International Financial Reporting Standards (IFRS)

LAMDA Development consolidated turnover reached € 93,4 million in the 3^rd Quarter 2006 compared to € 49,9 million in the same period of previous year 2005, showing an increase of 87%. Taking into account the turnover of Swissport LAMDA Hellas which was sold in June 2006, the growth of the group turnover amounts to 111%.

The growth in group turnover is mainly attributed to the revenues generated by the two Shopping and Leisure Centers, “The Mall Athens” and “Mediterranean Cosmos”, as well as to the continuing sales of residential units of ILIDA complex in Marousi.

Group turnover reiterates the strategic focus on real estate development, management and investment, as indicated in the following table:

Consolidated net profits after minority interest increased significantly as it reached € 46,3 million compared to a loss of € 7,9 million in the corresponding period last year.

The significant increase of the consolidated results by € 54,2 million compared to the 3^rd Quarter 2005 is due to the successful operation and management of the two Shopping and Leisure Centers ‘The Mall Athens’ and ‘Mediterranean Cosmos’, which are 100% and 97,5% leased respectively and also to the gains from the adjustment of the fair value of the shopping center “The Mall Athens” by € 30 million (after the deduction of the deferred tax). The adjustment of the consideration for the transfer of the shares of EUROBANK PROPERTIES REIC by € 4,7 million has also positively attributed to the results. The reduction of corporate income tax rate had also a positive effect to the profits by € 5,4 million. This favorable development counterbalanced to a certain extent the increase in financial expenses by € 11,5 million which are now expensed and no longer capitalized as in the previous periods, given the completion and commencement of operation of the group’s real estate developments.

Regarding the fair market value gains that resulted from the evaluation of the Shopping Center “The Mall Athens” it should be noted that they have resulted from the successful operation of the shopping center as well as the improvement in the capitalization rate compared to the valuation as of 31/12/2005. The use of a lower cap rate for the valuation of this shopping center is based not only to the current market conditions but also to the sale agreement with HSBC for the transfer of the 50% of the shares that LAMDA Development held in the Shopping Center. The specific transaction obliged the company to appraise the value of the Shopping Center in June 2006, as indicated by IFRS (IRS40). It should be noted that the financial profit from the forthcoming transaction has not been fully reflected in the financial results, as its completion is still pending.

The parent company LAMDA Development posted profits of € 31,8 million compared to profits of € 5,3 million in the 3^rd Quarter 2005. This significant increase in profitability is mainly the outcome of the reversal of provision from impairment by a € 38,7 million reduction in the value of LAMDA Olympia Village that was held on 31/12/2003; this however does not affect the consolidated results. Consolidated results have also been influenced positively by € 4,7 million from the adjustment in the consideration of the shares transfer of EUROBANK Properties REIC. On the other hand, results have been influenced negatively by € 4,5 million due to the transfer of LAMDA Shipyards & Marine Services SA.. It should be noted that the transfer of the above company occurred at a higher value than its net asset value, which resulted to a total gain of € 2,6 million in the consolidated results.

Summary of consolidated financial information:

LAMDA Development’s strategy for growth is the following:

- Further improvement of the performance of the shopping centers and office buildings (Cecil, Kronos in Marousi), sale of Ilida Business Center in Marousi, as well as sale of the remaining apartments in ILIDA residential complex (77 apartments remain to be sold). Completion of the Flisvos Marina investment development during 2006 will consequently improve the financial results from 2007 onwards.

- Completion within the next two years of all the developments, which are now at the stage of permits: IBC commercial center, office building in Bucharest, commercial center and residential complex in Sofia.

- Development of the Company’s plot of land in Kifissia, in Kato Kifissia and in Spata. Furthermore, materialization of the pre agreement for the development of motorway service stations in the National Road of Maliakos Klidi.

- Participation in the bids of the Greek State for the concession of tourist developments, exhibition centers, logistics and retail developments.

- Intention to participate in private developments in Greece for the development and management of outlet centers, big boxes, etc. as well as tourist developments.

- Intensification of the network of companies in Romania, Bulgaria and Serbia in order to enter into new agreements for residential, office and retail developments.

- Expand into property fund management in SEE, Russia and Ukrania with total shareholder’s equity of approximately € 200 million. LAMDA Development own participation is estimated at 15%.

- Further exploit international strategic alliances with ECE, HSBC, SONAE SIERRA, and PARKRIDGE, as well as with local players.

In total the Company is currently considering a variety of developments in order to invest approximately € 400 million in the next 2 years.

The financial results of the third Quarter 2006 will be published in the press on 7/11/2006 (newspapers Ta Nea & Hmerisia) and will be announced on the company’s website (www.lamdadev.com) on the same day.