SOURCE: PARQUESOL

April 27, 2007 03:20 ET

PARQUESOL : Parquesol's EUR 14.1 million gross profit takes gross margin to 41.3%

MADRID, SPAIN -- (MARKET WIRE) -- April 27, 2007 -- Presentation of Company results, first-quarter 2007

Parquesol's EUR 14.1 million gross profit takes gross margin to 41.3%

Madrid, 27 April 2007.- Parquesol -- the real-estate company 50.79%-owned by the San José Group, with 30 years' industry experience and operations in Spain, Portugal, France and Poland -- reported EUR 3.8 million profit for the first quarter of 2007, from EUR 34.1 million in revenues.

REVENUES AND MARGINS

When comparing sales and results in the same period in 2006, the Company's figures this quarter were principally affected by less business from land sales. Accordingly, this item provided just 10% of the quarter's EUR 34.1 million in revenues, compared with a 38% contribution to the figure in 2006. In residential development the pace of sales eased somewhat, equalling 11% less than in 2006.

Turning to the property business, there was a noteworthy 5% increase in rental income to EUR 4.7 million, reflecting the strategy to expand this business segment. The Company's gross profit reached EUR 14.1 million in the first quarter of 2007, or a 41.3% gross margin. The margin for residential development increased to 33.9% in the period, meanwhile, from 27.5% previously.

Some 67.51% of revenues were from residential development, 13.89% from rental income, 10.26% from land sales and, lastly, 8.34% from asset disposals.

INVESTMENTS

Not considering the corporate related investments due to the take over bid, the company expects to invest EUR 84 million in land and EUR 125 million in assets acquisition for the full year 2007. Thus, the strategic investment plan that was released at the time of the take over bid remains intact.

OUTLOOK

Parquesol is continuing with the business plan as envisaged in its May 2006 public offering. The San José Group's clear position on the real-estate industry via its public tender for Parquesol is set to pave the way for a new expansion strategy in the years ahead. This shall be explained to the investment community and media in due course in accordance with the dates established in the tender offer's prospectus.

For further information on this press release, contact:

Pilar Fernández, Communication Manager.

Tel: +34 917 994 990. Fax: +34 917 994 997.

E-mail: pilarfernandez@parquesol.es

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