Impact shares, attractive on the emerging real estate markets

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 Impact's most attractive level on the Stock Exchange in the last 3 years.

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

On the international level, the indexes are calculated in order to compare the performances of different companies with the same profile - including real estate - using the financial reports according to the same international standard (IFRS).

The higher demand registered compared to the real offer on the residential market, as well as the fact that the real estate loans market is strongly expanding fuel the sustained demand for residential units. IMPACT has created a varied portfolio of complex projects in Bucharest and Cluj-Napoca as well as in Constanţa, Oradea and Ploieşti, which should meet the demand in the following 4-5 years.

• The financial indicators for 2007 show the growth potential for IMPACT's activity and the company's healthy activity mechanism.
• The value of the contracts signed in 2007 is three times higher than in 2006;
• The building value completed increased with 64%, from RON 37.4 million in 2006 to RON 61.3 million in 2007;
• The value of the infrastructure completed increased with 132%, from RON 4.1 million in 2006 to RON 9.5 million in 2007;
• The company's debt degree is of 30% according to IFRS;
• The gross profit increased with 171% from EUR 38,726 thousand in 2006 to EUR 104,872 thousand in 2007;

These financial results are according to IFRS.

In Romania, the listed companies have to present their reports according to OMPF 1752/2005 as well as according IFRS, which creates confusion among international investors.

The most important 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.

For the year 2008, Impact Developer&Contractor plans to keep the leadership over its area of activity. One of the announced objectives 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 repsect, Impact will attend specialized real estate events, among the most popular in this field, such as those in Vienna, Munchen, Barcelona, Madrid.

Due to the large number of ongoing projects, Impact estimates for 2008 an increase of the operational profit with 282% compared to 2006, from EUR 6.2 million to EUR 17.5 million.