Execution of investment plans and over PLN 10 million net profit in Q1 2008

The LC Corp S.A. Company operating on property development market, reported a net profit of PLN 10.1 million after the first 3 months of. This represents a significant growth, compared to Q1 2007, in which the company posted a loss of PLN 1.3 million.

This good outcome of LC Corp S.A. in Q1 2008 resulted from revenues generated by fees relating to service/maintenance of Arkady Wrocławskie shopping and office centre (opened in Q2 2007), as well as completion and release for use/occupancy 101 flats from Stage I of Przy Promenadzie Estate project in Warsaw. This Stage I comprises 235 flats in all. All flats built as part of the project have already been sold and residents have moved in, and the final notarial transfer of ownership of the remaining 134 was completed in April and May.

After the Building Permit was granted in October 2007, the sale of flats available under Stage II of Przy Promenadzie. The entire Stage II project comprises 385 flats, and its completion is scheduled for Q4 2009. Presently, as many as 89 flats of this project have been sold, i.e. 21% of the total usable area.

The Company’s President Konrad Dubelski said: “The slump on the market which occurred at mid-year 2007 also affected the property market. Decisions concerning purchases of new flats by clients are still made with greater care, and they are prepared to wait longer, looking for better bargains on the market. LC Corp’s strategy has always targeted completion of unique and interesting projects, thus offering client added value relating to our investments. Both the location of a particular investment and architectural designs generate unrepeatable solutions, which help effectively compete with rival developers’ offer. Given the interest and the flats sale figures in Q1, I am sure we chose the right strategy, and more importantly it was well-received by our clients and investors”.

Currently, LC Corp manages 15 projects and continues to develop its investment portfolio, which at the moment incorporates over 2.2 million square metres of land, with the resulting total investment value to exceed 1 of usable area and investment outlays of over PLN 6.4 billion.

In line with the adopted development directions, both the building investments and investments under preparation are concentrated in major Polish agglomerations: Warszawa, Wrocław, Gdańsk, Kraków, Katowice, and Łódź.

One this April’s prominent events was the ceremony of laying the cornerstone of the Sky Tower investment in Wrocław. Currently, work has advanced on completing the foundations of the Sky Tower complex, which is now the highest residential building investment underway in Poland. The scale of the project is reflected in record figures both in terms of materials and employed resources:

• Before work began, 200,000 cubic metres of earth was removed from the construction site (i.e. approx. 25,000 dumper truck loads),
• 150 foundation piles, each 18m long and 1.5m in diameter, were made,
• 200,000 cubic metres of concrete will be poured in the foundation of Sky Tower,
• The foundation slab is 7m thick in some spots (No company has ever made such slabs in Poland),
• Total of 30,000 tons of reinforcing steel will be used in the construction of the complex,
• 70,000 square metres of glass will be used for glazing of the façades,
• Currently approx. 200 people are working on the site (the target figure is approx. 1000),
• 8 cranes will be operated within the site, including one which is 270m high

Sky Tower is an example of LC Corp unique projects. The ongoing construction has become the symbol of the fast-developing Wrocław, and the interest in apartments influenced the opening of a new and bigger sales office located at Arkady Wrocławskie, which also houses sample apartment layouts. Work is also advanced on commercialization of shopping and service premises of the facility. Taking into account the target group of future residents of Poland’s tallest apartment complex, the company selects only reliable and unique operators and brands, which will be the project’s distinct feature and a proper base for residents.

The unique character of Sky Tower will be emphasised by the sculpture made by one of the 20th century’s greatest artists – Salvador Dali’s “Profile of Time” – located in front of the entrance to the complex. The sculpture was already unveiled, and until completion of the project, inhabitants of Wrocław can see it at Arkady Wrocławskie Centre.

In April, the Company was notified that Mr Leszek Czarnecki, the founder, majority shareholder of LC Corp S.A. and Chairman of the Company’s Supervisory Board (as of April 21st 2008), has increased his interest in the Company by purchasing, between April 8th and 20th 2008 in a session mode on the Warsaw Stock Exchange, 1,160,000 shares of LC Corp S.A. Mr Leszek Czarnecki also reiterated in media his declaration to shareholders of LC Corp S.A. made on the day the Company went public in June 2007, that he had no intention to sell his shares within 3 years from the stock-exchange debut.

In April, Pioneer Pekao Investment Management SA reported of its increased commitment in LC Corp S.A., being the third Fund to exceed 5% share in the Company.