Plaza maintains strong financial position and reports good progress across its portfolio (PL/UK)

Plaza Centers N.V. ("Plaza" / "Company" / "Group"), a leading emerging markets property developer, today announces its preliminary results for the year ended December 31 2008.

Plaza Centers N.V. ("Plaza" / "Company" / "Group"), a leading emerging markets property developer, today announces its preliminary results for the year ended December 31 2008.

Financial highlights
•Profit before tax of €68 million (December 31 2007: €227 million) owing to the disposal of Plzen Plaza in the Czech Republic, price adjustments following the sale of Arena Plaza and gains from financing activity
•Gross revenues and gains from sale and operations of properties of €99 million (December 31 2007: €510 million), with no revaluation gains, as per the Group's policy
•Total assets of €959 million (December 31 2007: €761 million)
•Basic and diluted EPS of €0.23 (December 31 2007: basic €0.78, diluted €0.77)
•Net Asset Value down 35% to €0.7 billion (December 31 2007: €1.06 billion) , Mainly due to increase in exit cap rates and reduction of expected rental levels
•Net Asset Value per share £2.26 (December 31 2007: £2.52 post dividend), a decline of 10.3% (decline lower than Euro NAV due to the weakening of Sterling
•Conservative gearing position maintained with minor debt comprising only 47% of equity (December 31 2007: 10%)
•Current cash position of circa €170 million; €178 million at the year end (December 31 2007: €93 million) with working capital of €698 million (December 31 2007: €625 million)
•Gross proceeds raised of approximately €153 million from a debenture issue to Israeli institutional investors between February and May 2008, providing significant additional financial flexibility
•The Board has taken the prudent decision not to recommend a dividend for 2008 in order to preserve the capital liquidity within the Company
•Share buyback program initiated with Plaza acquiring 14.5 million shares at an average price of £0.53, purchased up to 15 January 2009 (9.21 million shares at December 31 2008). Elbit Imaging Ltd. ("Elbit"), Plaza's ultimate parent company also purchased 4.79 million shares, bringing its effective shareholding to 73.69%.

Operational highlights
•Good progress on current developments under construction. Development activities limited to eight projects located in areas with the highest market demand and with favorable financing opportunities, namely Casa Radio and Miercurea Ciuc in Romania, Dream Island in Hungary, Suwalki and Zgorzelec in Poland, Liberec in Czech Republic, Koregaon Park in India and Riga in Latvia
•Successful handover of Plzen Plaza in the Czech Republic to Klépierre. The asset value on handover was €61.4 million, an increase of 43% compared to valuation at IPO
•Completed the acquisition of four development projects, located in Romania and Poland:
o Two developments in Hunedoara and Targu Mures, Romania with an anticipated gross lettable area ("GLA") of 13,000 m² and 30,000 m², respectively
o Two projects in Poland in the cities of Kielce (GLA 33,000 m²) and in Leszno (GLA 16,000 m²)

•A company owned by the consortium members of Dream Island (in which Plaza now holds a 43.5% stake), won the first ever major casino licence to be awarded in Budapest, Hungary for its planned circa €1.5 billion entertainment and mixed use development
•Joint venture signed with Elbit to develop three major mixed use projects in India, located in the cities of Bangalore, Chennai and Kochi
•Acquisition of the entire 50% interest of Plaza's joint venture partner in the Koregaon Park development in Pune, India, for a total consideration of approximately US $20 million
•Signed and secured bank loan agreements for the construction of projects in Suwalki, Poland (€42.2 million), Zgorzelec, Poland (€35.1 million) and Miercurea Ciuc, Romania (€19.9 million)
•Significant progress made on two shopping centers to be o

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