THE VOLUME OF DWELLING SALES HAS REMAINED CONSTANT

"The obtained results confim an existing demand of dwellings, but also the success of the dwelling solutions that we have released lately, although the difficult economic situation, the unemployment wave and the incertitude on the financial markets associated with the tightening of the crediting conditions determined the decrease of the confidence of Romanians into the future, changing their priorities and making them more prudent in making the consumption and inventment decisions", declared Carmen Săndulescu, CFO Impact Developer & Contractor.

The total value of the contracts and reservations signed in the first quarter of 2010 was of 17.2 million RON, 14% lower than of those concluded in the first quarter of 2009, because of the different structure of the sold units.

First quarter of 2010 - 47 sold units:

• 19.14% by call-buy system (lease with a purchase option) and simple rent
• 36.16 % with integral payment
• 12.76% with payment in installments and in tranches
• 31.91% reservations

First quarter of 2009 - 46 sold units:

• 59% by call-buy system (lease with a purchase option) and simple rent
• 24% with integral payment
• 17% with payment in installments and in tranches

With regard to the gross profit, in the first quarter of 2010 this was of 469 thousand RON, in decrease by 84% in comparison to the first quarter of 2009, but by only 290 thousand RON lower than the value that was budgeted and approved by the General Assembly of Shareholders. This decrease was caused by the failure to transform the reservations into contracts because of the delay to obtain the documents necessary for the finishing of the transactions and modifications to the Prima Casă Program operated in the first quarter of this year. The net profit in the first quarter of 2010 was of 216 thousand RON, that is, higher than the net profit registered on the entire year 2009.

The total liabilities of the company decreased by 7%, from 172 million RON in the first quarter of 2009, to 159.39 million RON in the first quarter of 2010, and the debt rate (total assets/total liabilities) decreased from 34% to 32%. In this respect Impact D&C is positioned favourably in comparison to the other specialized companies in Central and Eastern Europe, for which the debt rate is situated between 50% and 90%.

Given the unfavourable economic context, Impact D&C aims at maintaining its leading position on the residential real estate market and stability from the financial point of view.

Strategy of Impact D&C SA

Considering the focusing on the increase of market share, Impact D&C releases, this year as well, innovative dwelling solutions that would meet a most varied range of requirements of the clients: a lower price, a good location and increased technical standards. An example in this respect is constituted by the release, this month, as a premiere on the Romanian market, of the "Do it yourself" concept in residential real estate, that supposes the approach by the client, in direct labour, of some finishing stages of the dwelling, in exchange of a saving of 10%-40% from the price.

In addition, in the first quarter of 2010, Impact D&C continued the execution of works within the Quartz Project from the Greenfield urban pole and focused on the finishing of the design part for the new projects that would follow to begin this year.

ABOUT IMPACT DEVELOPER & CONTRACTOR SA:

Impact Developer & Contractor SA, established in 1991 by public subscription, is quoted to the Bucharest Stock Exchange. The company, that introduced the "residential assembly" concept in Romania, has developed until now in 5 cities 16 residential areas for over 2,000 families that live in houses and apartments. The portofolio is completed by 25,000 square meters of offices and commercial spaces, and also by complex administration services. The acquisitions solutions proposed to clients, in a number of 10, include concepts used for the first time in Romania: CallBuy®; A 2a Casă® - the old dwelling may be sold with no commission by means of the company and its value is considered as an advance for a new apartment; Habitest® - the testing under real conditions of the future dwelling and of the chosen assembly; the configurable dwellings of Kaleidoscop® type.