IMPACT Developer & Contractor SA – A 40% Increase of the Turnover in 2008

The results presented are preliminary and they are going to be subject to financial audits according to legal requirements. The results may suffer some changes before we have the finale version and it is submitted to the Ordinary General Meeting of Shareholders, which will take place on April 25th.

According to the OMFP, the financial preliminary result for the year 2008, are the following:

Operating incomes increased with 48% compared with 2007 due to the very good results the company had in the first half of 2008. The value of the contracts signed last year was of 75 mil. lei (about 20 mil. Euro). Meanwhile, the operating expenses have increased with approximately 56%, mainly due to the higher volume of construction completed in 2008.

Operating profit recorded in 2008 of 25,2 mil lei increased with about 5% compared with 2007. The financial preliminary results show a financial loss of 14,8 mi. lei, due to the exchange rate variation for the loans in Euros that have been already contracted.

In these circumstances, the results show a net profit of 8,4 mil. Lei, for the year 2008, which increased with 13% compared with the net profit realized in 2007.

The ongoing projects in 2008 were: Greenfield I in Bucharest, Boreal in Constanta, Roua in Ploiesti, Lotus and Europa in Oradea. From the projects we've just mentioned, in 2008 there were finalized Rubin, Topaz and Onix in Greenfield I and Europa Project from Oradea. The value of the contracts signed by IMPACT Developer & Contractor, in 2008, was of 75 mil, approximately 20 mil Euros.

"In the current economic market conditions, our priority in 2009 is to maintain operational efficiency in the company through a policy of administrative costs. In the same time, we broaden the portfolio of housing solutions which address to the customers - throughout the discounts and rents we offer - and we readjusted the projects are going to be delivered this year, in such a way that they can be purchased with a 5% VAT ", said the CFO of IMPACT Developer & Contractor, Ms. Carmen Sandulescu.

According to International Accounting Standards, that are not audited and unconsolidated, the company achieved an operating profit of 27 mil lei and a gross profit of 12 mil lei, before taking in consideration the income according to the IAS 40 "Real - Estate Investments". In IAS 40 there is included the land that won't be used for investments in the next future, as well as the buildings that have rental destination.

The increased or decrease of the revaluation value is reflected in the profit and loss statement. According to the IAS 40, the assets had increased with 5,3 mil lei from 2007, although according to the income revaluation IAS 40, there has been a decrease of assets revalued of approximately 9 mil. lei.

As a result of reconsidering the land area that can be subject to IAS 40, it has been a decrease on this land value compared with December 2007 with 26 mil lei, or 5% , and it has been an increase of 16,8 mil lei in the assets value from the apartments and the houses with rental destination.