LAMDA Development S.A., following its strategy of focusing its activities in the real estate sector and further strengthening its operational profitability, is announcing that on 4/9/2006 has signed an agreement with Privatsea M.S. Holding Ltd, a company of Latsis group interests for the transfer of the total shares that the company held in LAMDA Shipyards S.A., which represent 75% of its share capital.

The total price of the transaction is euro 10.9 million. The above price is increased by euro 1.4 million in accordance to the valuation report of the company, which was euro 9.5 million and was performed by the independent valuator Alpha Bank. This transaction is expected to improve the consolidated results of LAMDA Development by euro 1,1 million.

LAMDA Shipyards SA has presented operational losses for the fiscal year 2004 of euro 0.8 million, for the fiscal year 2005 of euro 2.3 million and during the first 8 months of 2006, of euro 4 million, which represent cumulative operational losses for the last three years of approx euro 7.1 million.