Third Quarter 2008 Financial Results based on International Financial Reporting Standards (IFRS)

Net Asset Value before taxes (NAV) increased by 11% and reached €463,0 million compared to €418 million in the third quarter 2007. Profit after tax and minority interest reached €30,6 million, representing an increase of 27.5%.

Recurring EBITDA has increased significantly by 42% from €15,3 million to €21,7 million, mainly because of the improved operational performance of the two Commercial and Leisure Centers and the remarkable turnaround in Flisvos Marina profitability.

Note: Figures for “The Mall Athens” refer to 49,24% which is consolidated.

More precisely, during the first nine months of 2008 “The Mall Athens” had a 8,4% increase in revenues, 7,9 million visitors and shopkeepers’ turnover increase of 6,7%.

The respective figures for Mediterranean Cosmos display a 14,9% increase in revenues, 6,1 million visitors and shopkeepers’ turnover increase of 12,8%.

Regarding Flisvos Marina, 250 docking spots as well as the 3,000 sq.m. GLA of commercial and leisure activities are fully leased and visitor traffic is very satisfactory. Revenues in the first nine months of 2008 reached €8,5 million compared to €6,1 million in the first nine months of 2007.

Consolidated net profits after tax and minority interest reached €30,6 million compared to €24,0 million in the respective last year’s period. The increase is attributed to the improved operational performance and to the change in the figure for deferred taxation based on the recent Law 3697/2008 which had a positive effect of €13,3 million. A negative effect resulted from the increase in interest expense by €6,9 million because of the higher loan volume that resulted from the materialization of the Group’s investment plan.

Summary of consolidated financial figures

It must be noted that the revaluation gains of the Group’s investment properties reached €20,6 million, reflecting their on-going successful operational performance and the increase in their profitability. As far as the capitalization rates (yields) are concerned, they remain relatively stable and conservative according to our estimations. More specifically, the average retail yield stands at 6,4% and the average office yield at 6,6%.

The net debt to value of the Group’s investments ratio was 46% which is deemed low in the context of today’s market realities. Furthermore, it should be noted that the Group has secured enough liquidity that allows the comfortable satisfaction of the loan covenants as well as the materialization of the investment plan.

Finally, LAMDA Development consolidated group turnover is comprised of the following segments:

The reduction in the consolidated group turnover is mainly attributed to the office building sale of the affiliate Lamda Olympia Village during the first nine months of 2007.

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

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

· Completion and operation within 2008 of “Golden Hall”, the company’s new commercial Center in Athens, which is already 99% pre-leased.

· Review of the Group’s strategy towards new developments in view of the recent financial 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 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, such as Turkey.

The summary of the financial figures of the third quarter 2008 will be published in the newspapers Imerisia and Kathimerini on 12/11/2008 and will be posted on the company’s website (www.lamda-development.net) and on the website of the Athens Exchange.