100 Contracts Signed in the First Nine Months of 2010

The direct costs of IMPACT SA decreased by 44% in first nine months of 2010 compared with the same period of last year, due to the activity restructuring which aims to increase the company's efficiency.

IMPACT SA doubled the company's liquidity, which is due on one hand to the rescheduling of the 12.8 million euro loan from Piraeus Bank, and on the other hand, to the fact that the company's assets portfolio is liquid enough in order to ensure the payment of the current debts. In addition, the company repaid loans in amount of 3.86 million euro in first nine months of this year. The cash and cash equivalents decreased by 9 million ron in this period, due to the payment rates of the loans, but also due to the early loan repayments.

Short-term debt deceased in the first nine months by 56% compared with the same period last year, on one hand as a result of the investment loan restructuring approval from the Piraeus Bank and of the non-cash facility granted, and on the other hand, due to the loan payments. The debt ratio has also decreased from 34% to 32% of the same period.

The evolution of these indicators shows the company's focus on the commercial activity, and the concern for the compliance with the business partners' commitments even after the surprising decision of the Bucharest Court from July 8th regarding the opening of insolvency procedure demanded by a company from Ploiesti. Moreover, on August 11, the Court of Appeal suspended temporary the insolvency procedure by irrevocable decision. The final settlement will be determined at the appeal initiated by IMPACT SA.

The main financial indicators of Impact Developer & Contractor SA on September 30, 2010, according to the unaudited and unconsolidated financial statements are:

Even in the unfavorable economic environment, the taxation increase and the wages decrease in the public sector produced in this period, the company's financial result at nine months has been better than three months ago. Although the financial result remains negative, the loss has decreased from 7.4 million ron at the end of second quarter 2010, to 6.7 million ron on September 30th, 2010. "The good thing is that the operations generated profit in the last three months, the major loss being generated by the financial expenses, mainly by the interest expenses. I want to underline that we don't have any outstanding loans or any delays in payments", said Carmen Sandulescu, executive director of IMPACT SA .

The uncertainty situation faced by the population regarding the economy evolution, and sometimes the insecurity of the jobs the people are facing has increased the making decision time for the purchase of the dwellings and even postpone it for an indefinite period. Thus, compared with the same period of last year when there were sold and rented 150 dwellings, in the first nine months of 2010 there were contracted 100 dwellings, including reservations: 67 dwellings were sold and 33 rented. Out of these, in the first nine months of 2010 there were delivered 80 dwellings.

Besides the completed dwellings sales IMPACT SA offered land plots for sale for the construction of the houses, the buildings and the commercial spaces. In this regard IMPACT has signed land sales pre-contracts in amount of 200,000 euro.