Consolidated EAT of euro 1.97 mil. in the H1 2008.
PASALs investment plan is accelerating.
PASAL Development S.A. announces that the consolidated earnings after tax and minorities for the 1st half of 2008 amounted to 1.97 mil. euro from 3.9 mil. euro in the corresponding period of 2007.
Earnings before taxes, interest and depreciation (EBITDA) amounted to 4.1 mil. euro compared to 6.6 mil. euro in 2007, while the consolidated earnings before taxes amounted to 3.0 mil. euro compared to 5.6 m euro the same period last year. The decrease is mainly due to differences in the property portfolio value adjustment, as in H1 2008 that amounted to 4.1 mil. euro from 6.8 mil. euro in H1 2007, taking into consideration the fact that most developments are expected to be completed in the H2 2008, in contrast with 2007 where developments were completed in H1 2007.
The group's consolidated income (resulting from rental income and provision of services) for the H1 2008 amounted to 1.7 mil. euro compared to 1.04 mil. euro last year, posting an increase of 68% while operating expenses amounted to 2.6 mil. euro compared to 1.3 mil. euro in 2007. This was primarily due to the companys increased investment activity and due to the increase in personnel expenses. Specifically, employee headcount was 34 persons on 30.6.2008 up from 22 persons in the respective period last year. Consolidated net financial results (interest payable less interest receivable) amounted to 1.1 mil. euro and remained constant compared to last year.

During the H1 2008, Pasal proceeded with the following corporate actions:
- The completion and setting in operation of the commercial property in N. Efkarpia, Thessaloniki (the property is facing the Egnatia Motorway)
- Three new properties were purchased: (i) a land plot of 40,832 sq.m in Oreokastro area in Thessaloniki, facing the Egnatia Motorway, (ii) a land plot of 3,900 sq.m on Alimou Ave. in Athens, and (iii) a land plot of 50,000 sp.m. in Larisa. The initial investment for the three purchases amounted to 18,5 mil euro.
- The sale of two investment properties developed by Pasal both located on Kifisias Ave. was completed, for a total amount of 16 mil. Euro.
- On June, PASAL acquired 37.08% of Piraeus R.E.I.C. share capital for a total amount of 42.3 mil Euro. Such an investment goes along Pasal's growth strategy for further development and consolidation in the real estate sector, through the use of the synergies that will be created. This development is expected to accelerate the investment plan and consequently the growth of the company, as it considerably enhances its position in the real estate and property development sector.

Since the companys IPO on the Athens Stock Exchange (commencement of trading on 4/1/2008) and the raise of 23.3 m euro, the company has invested 8.4 mil. euro as of end of H1 2008. The companys net debt (bank loans minus cash & cash equivalents) at the end of the H1 2008 amounted to 86.7 mil. euro, and the loan to value ratio (LTV) - without taking into account the loan for the purchase of Piraeus R.E.I.C. shares - amounted to 49.5% and remains at low levels, given the fact that the premium from the investment properties that are completed within 2008, is not taken into account.
The Net Asset Value before deferred taxation (NAV) on 30.06.2008, amounted to 99,174 thousands Euro (?6.6/share) while Net Asset Value after deferred taxation (triple net NAV -NNNAV) amounted to 83,847 thousands Euro (?5.6/share). By the end of 2008 a considerable increase in Net Asset Value (NAV) is expected, due to the completion of the investments that PASAL will materialize within the second half of the year.

The largest developments under way are:
- The shopping center at 180 Pireos Str. in Tavros which is under construction is expected to operate in December 2008. The new shopping center will have a total area of 58,000 sq.m. with 700 parking spaces and 20,000 sq.m. lettable area that will accommodate 80 retail stores as well as dinning areas. The company has already signed leases with well established retail brands covering 65% of total lettable area. Pasal expects initial annual income of 6 mil. euro from the operation of this shopping center.
- The logistics center in Elefsina, with a total area of 33,900 sq.m. is expected to begin its operation in October 2008.
- The development of the property in Alimou Ave., where demolition works of the existing building have already been completed and the construction of a commercial complex with a total area of 4,000 sq.m and 80 underground parking places has commenced. The building is expected to be operational during the 2nd quarter of 2009.

In the context of implementing its investment plan, PASAL is planning new developments of 150 mil euro during the next two-year period, in Athens and other regions of Greece and the Balkans, from which 95 mil Euro refer to investments undertaken in seven different projects. At the same time, the Company will pursue other investments as well. Particular emphasis will be given to the promising sectors of shopping centers (malls, big boxes) and retail outlets in Athens, Thessaloniki and in other large secondary cities. In the context of developing activities in new markets, particularly in the Balkan region, Pasal Development has established a subsidiary company in Belgrade, Serbia.
Pasal Development S.A. has signed an agreement with Lehman Brothers to act as its financial advisor with respect to the company's growth strategy and capital structure. With this collaboration Pasal aims to successfully and systematically emerge as one of the most dynamic and promising real estate players in Greece and South Eastern Europe.

The brief financial information for the six-month period that ended on 30 June 2008 will be published in the newspaper Naftemporiki on 27/8/2008, while the brief consolidated and company interim financial statements will be posted on the companys website (www.pasal.gr ) on the same day.