In Q1 2008 Globe Trade Centre S.A. (GTC) achieved a net profit of EUR 34.8m – an increase of 211% y-on-y. The operating profit grew 236% y-on-y to EUR 59.9m. The total assets reached almost EUR 2bn, whilst the total equity has exceeded EUR 1bn.

GTC continues to report impressive financial results. Both profit from operations and net profit in Q1 2008 more than tripled year-on-year. Revenues from operations grew 7% to EUR 15.9 m, as advanced sales in the current residential projects has not yet been reflected in the financial statements.

The value of investment property has increased by almost 70% y-on-y to EUR 947.7m, while total assets reached EUR 1.976 bn (an increase of 58% y-on-y).

The revaluation profit upon completion of two office buildings – Nefryt (15 300sqm NRA) in Warsaw and Globis Wrocław (14 700 sqm NRA), as well as an office part of Galeria Kazimierz in Kraków (2 000 sqm NRA), amounted to EUR 52.5 m.

In Q1 2008 the company achieved a development margin of 95%, an increase from the 88% margin recorded in Q4 2007. Such an impressive performance proves that GTC is able to achieve above-the-market returns on new developments thanks to location, efficient design and the technical specification of the buildings, as well as the prime quality of its tenants.

The Q1 2008 results indicate that the level of investment yields for a high quality, class A commercial property has remained unchanged compared to Q4 2007 . The international, independent property appraiser that conducted a valuation of Nefryt and Globis Wrocław, based their valuation on investment yields of 5.9% and6.3% respectively.

In May 2008 GTC signed the largest lease agreement in the history of its operations. State Street – the world’s leading financial institution with $15 trillion in assets under custody and $2 trillion in assets under management, leased 11 600 sqm in Kazimierz Office Centre in Kraków and 3,000sqm in the recently completedEdison Building. The Kazimierz Office Centre comprises of 15 300 sqm of net rentable area and is scheduled for completion in Q2 2009.

GTC is responding to strong demand for office space in Poland with its largest development pipeline ever. In Warsaw a second building in Platinium Business Park (9 100sqm) and Zephirus in Okęcie Business Park (9 000sqm) will be delivered in Q3 2008, while office projects in Łodz (37 000 sqm), Katowice (21 500 sqm) and Wrocław (15 000 sqm – the first phase) are scheduled for completion at the end of 2009.

The company is expanding its retail portfolio quickly. In Q1 2008 GTC started construction of its largest retail project in the pipeline – Galeria Jurajska in Częstochowa (48,000sqm NRA). In Romania three shopping centers are scheduled for completion in 2008 – Galleria Buzau, Galleria Piatra Neamti, and Galleria Suceava. 12 more shopping centres in the Czech Republic, Hungary, Romania, Bulgaria , Romania, Serbia and Croatia are planned to be opened in 2009-2010.

GTC continues to successfully develop residential projects in the region. Over the last 12 months the company has sold 1200 apartments in its two projects in Bucharest: Rose Garden and Felicity, of which 500 units are expected to be handed over in 2008. In two other projects scheduled for completion this year – Belgrade’s Park Apartments and Prague Marina, 100% and 70% of flats have been sold respectively. The revenues and profits from these 4 projects will be recognised in GTC’s financial statements only upon completion and hand over of apartments.

The company starts its operations in Russia – in April 2008 GTC Russia, acting through its subsidiary, acquired 50% interest in the office project in Sankt Petersburg. The joint venture is going to develop 110,000 sqm of net office space, scheduled for completion in 2011-2013. Globe Trade Centre S.A. holds 95% in GTC Russia.

GTC’s financial liquidity is strengthening its competitive position in the region. At the end of Q1 2008 the company held EUR 286 m in cash, the ratio of long-term debt to total assets stood at 39%, while the bank financing of all projects under construction in Poland as well as for most of the projects in other countries has been secured.

The development pipeline has increased, either through new acquisitions or expansion of existing projects, to 2.027m sqm of net space. Most of the projects are planned to be completed by 2011.

The speed and the quality of GTC’s operations have been recognized by real estate professionals. In February 2008 Globe Trade Centre S.A. received the prestigious Central & Eastern European Real Estate Quality Award for the CEE Real Estate Developer of the Year 2007, after being awarded the same title in 2004. In May 2008 the company was also named the Developer of the Year in the Southeastern Europe Real Estate Awards organized by Europaproperty.com.

Globe Trade Centre S.A.

KOR 45A, 02-146 Warsaw NIP: 527-00-25-113 T: +48 22 16 60 700 www.gtc.com.pl

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