IMPACT shares are attractive on the emerging real estates market due to the financial indicators for 2007 and 2008

IMPACT shares were promoted to tier I of the Stock Exchange in 2006: the company became the first representative of the real estate and constructions area. Due to the prestige obtained by its involvement in several mixed projects, including "Greenfield", the second biggest projects in Bucharest, IMPACT becomes attractive for the emerging real estates market.

During a press conference on Wednesday, the 7th of May, the company presented its consolidated financial results for 2007. Thus, at the price of RON 0.219 per share, P/NAV (company prices for the net assets value in 2008e), which is the main performance indicator for a listed real estate company, reached the treshold of 0.47, representing the company's most attractive level on the Stock Exchange in the last three years. This quotation facvors the Stock Exchange investments in shares.

Compared to the Central and East European average of the P/NAV indicator, estimated at 1.65 for 2008, IMP holds the best place. The same situation is also found for the P/E (company price per gross profit), the indicator's average for the Central and East European real estate companies being estimated at 8.5 for 2008, while the P/E (2008e) indicator for IMP is at 2.5, a lot more attractive.

The higher demand compared to the real offer on the real estate market, as well as the fact that the real estate credit market is in a phase of strong development fuels the sustained demand for residential units, and all these factors triggered IMPACT's decision to create a diversified portofolio of complex projects in Bucharest and Cluj-Napoca, and also in Constanţa, Oradea and Ploieşti, which should meet the demand for the next four-five years.

The Cluj project is currently under development. This represents a public-private partenership with the Cluj Town Hall, which, due to its location, will turn the neighborhood into a "garden-town", thanks to the downtown area, with increased visibility, close to the train and bus stations, with good public transport connections and pretty close to the historic center.

Also, the financial indicators for 2007 show the growth potential for IMPACT's activity and the company's healthy activity mechanism. These indicators show an increase of the contracts signed in 2007, three times higher than in 2006, an increase of 64% in the value of the constructions completed, from RON 37.4 million in 2006 to RON 31.6 million in 2007, while the gross profit increased with 171%, from EUR 38.726 thousands in 2006 to EUR 104.872 thousands in 2007. All these financial results are according to IFRS.

As the companies have to present their financial results according to OMFP 1752/2005 and IFRS, this may be confusing for international investors. OMFP 1752 follows the French accountancy model, initiated by France in 1673. The French model was introduced initially to protect the economy against banktruptcy, and then, as a base for fiscal evaluation, after the introduction of the income tax. OMFP 1752 follows: the OMKP modelling of the individual and state-owned companies and the fiscal evaluation.

IFRS has been used starting with the 19th century, following the industrial revolution, which resulted in the need for a bigger capital concentration. The IFRS model is oriented towards the capital market and represents a method for monitoring the activity of the big companies, in order to provide information to the shareholders.

The differences betweeen OMFP 1752 and IFRS, for the activity of the real estate development companies, are: the moment of income recognition, the evaluation of the real estate investments and the deferred income tax. Thus, for the year 2008, IMPACT Developer&Contractor plans to keep the leadership for its area of activity.

With a strong brand, an experienced managing team, access to finances and capital market, one of the objectives announced by the company is to become an important player on the international real estate market as well, through partnerships / transactions with international investors interested in the opportunities of an emerging market, such as the Romanian one. In this respect, IMPACT will attend specialized real estate events, among the most popular in this field, such as those in Vienna, Munchen, Barcelona, Madrid.