First Quarter 2011 Financial Results

Group Recurring EBITDA reached €13,2 million compared to €13,9 million in the first quarter of 2010, registering a decrease of 5%. Net profit for the period amounts to €5,6 million compared to €6,1 million in the first quarter last year. These satisfactory results are mainly attributed to the continuing successful operational performance of our three shopping centers, despite the deep recession in the retail sector in Greece and also to the participations and dividends from our shareholding in Eurobank Properties.

The favourable performance comparison of our shopping and entertainment centres to the rest of the retail market in Greece is attributed to the fact that they have overwhelmingly won the preference of the consumer public. Shopkeepers continue to have the advantage of lower rents compared to high streets and enjoy ample support via marketing, promotional and communication activities which procure satisfactory customer visits as evidenced by actual data. This success is also reflected in the full occupancy rate of our shopping centers as well as in the fact that contractual rental levels have been maintained without cutbacks.

More specifically, the operation of “Golden Hall” has been quite satisfactory given that recurring profitability remained flat while shopkeepers’ turnover in the first four months of 2011 was in line with last year’s levels. Shopkeepers’ turnover in “The Mall Athens” for the same period decreased by 12%, significantly lower than the relevant sectors of the total retail market which posted a drop between 25% and 30%. In “Mediterranean Cosmos” in Thessaloniki shopkeepers’ turnover also dropped by 11% only. It must be noted that, following our undertaking of the full management of Mediterranean Cosmos in December 2010, various corrective actions and improvements are being implemented in order to further improve the quality of the center and to fortify the product mix with strong brand names.

Flisvos Marina posted a decrease in recurring profitability versus last year, mainly due to the economic recession and the recent intensive competition in berthing services from surrounding marinas. Flisvos Marina is still the only marina in Greece where approximately 50% of the 300 berths can be used by mega yachts with over 30 meters length. The on-land commercial development (retail shops and restaurants) enjoys full occupancy and continues to attract increased footfall that approximates 15.000 visitors per day during the weekend and has become a reference point among the public in the seaside part of Athens.

It should also be mentioned that the performance of our office buildings is very satisfactory as they have managed to sustain average occupancy rate around 95%.

Moreover, the dividends and participations revenue remained same as first quarter last year primarily due to the dividend collected from Eurobank Properties REIC, an outcome of its continuing strong performance. On 31/03/2011 the total number of shares LAMDA Development owned amounted to 9.005.987 (a shareholding of 14,76% versus 13,9% a year ago).

Finally, it should be noted that Group overheads are 4% lower as a result of our on-going cost control policy.

The following table summarizes the Group’s Recurring EBITDA:

Consolidated Net Profit after tax and minority interest reached €5,6 million compared to €6,1 million in the first quarter of 2010. It must be noted that in the first quarter there was no management adjustment in the fair value of our investment portfolio assets, while valuations from independent property appraisers are conducted every June and December.

Net Asset Value before Taxes reached €462 million (€11,2 per share) compared to €448 million on 31/12/2010, registering an increase of 3%. The increase in the Net Asset Value, as mentioned above, is owed to the €5,6 million net profit as well as to a higher mark to market valuation of our shareholding in Eurobank Properties by €4,5 million.

Summary of consolidated financial figures

LAMDA Development stock is still trading at a significant discount compared to its Net Asset Value. More specifically, with a share price of €3,83 on May 24, 2011, the discount was 66% compared to a Net Asset Value per share of €11,2. It must also be noted that treasury shares represent 6,8% of total capital with an average purchase price of €5,23.

The Net Loan to Value Ratio (Net LTV) of the Group’s investment portfolio was 49%, the same as on 31/12/2010. The Group still maintains significant liquidity that approximates €144 million with the intention to finance the development plan and potential investment opportunities that may arise in the near future as a result of the economic downturn.

Finally, LAMDA Development consolidated Group Turnover is comprised of the following segments: