Haslemere reports net profit of € 24 million in first half year 2004 (NL)

Haslemere NV reports a net profit of € 24.0 million for the first 6 months of the financial year ending 31 December 2004, compared with a net loss of € 27.3 million for the corresponding period of 2003.

Accounting Principles
Assets and liabilities as at 30 June 2004 are valued and presented under Dutch GAAP, adopting the same accounting principles as used in the accounts for the year ended 31 December 2003, applied on a consistent basis. The accounting principles and presentation of net profit have changed in comparison to the 2003 annual accounts and are in conformity with the revised Dutch Reporting Guideline (Richtlijn 615). As previously reported on 20 April 2004, Haslemere NV has adopted, for the first time, the revised Richtlijn 615 for the 2004 financial year.

The impact on Haslemere of implementing the revised guideline is to combine the Revaluation Reserve with the General Reserve and to define and present as Net Profit that which was previously defined and presented as Total Performance. The net financial impact on Net Profit for the first half of 2004 is an increase of € 17.7 million. The impact on Net Profit for the first half of 2003 is a decrease of € 21.6 million.

The Interim Report has not been audited.

Operating Performance
Haslemere NV reports a net profit of € 24.0 million for the first six months of the year ending 31 December 2004, compared with a net loss of € 27.3 million for the first six months of 2003.

Portfolio Activity
An external revaluation was performed on the property portfolio at 30 June 2004 producing a surplus of € 21.6 million in the quarter. During the half year to 30 June 2004 gross proceeds from the sale of property were € 118.8 million generating a gain on disposal of € 3.1 million.

The deficit on revaluation of the property portfolio during the corresponding period in 2003 amounted to € 27.1 million.

Capital Re-denomination
On 7 April 2004 the re-denomination of the ordinary share capital of the Company from € 8.00 per share to € 2.75 per share was completed and the Articles of Association amended. € 120.1 million being the value of the re-denomination, was transferred from share capital to share premium during the second quarter of 2004.

Shareholders’ Equity
Shareholders’ equity has decreased from € 348.8 million at 31 December 2003 to € 302.2 million at 30 June 2004. The movement results from the first half year net profit of € 24.0 million less a distribution from the share premium reserve of EUR 69.8 million.

Debt Financing
Total borrowings increased during the half year from € 267.3 million to € 267.5 million.

On 11 June 2004 Haslemere NV announced the refinancing of debt within the Racevink BV joint venture vehicle. The Company’s share of additional borrowings was € 0.3 million. The Company also repaid € 0.1 million of unsecured debt during the half year.

The adjustment required to increase the value of fixed interest debt to its fair value, is estimated at € 48.9 million gross, and € 34.1 million net of tax relief, at 30 June 2004. The corresponding figures at the end of December 2003 were € 54.3 million and € 38.0 million respectively.

Acquisition of a majority stake by General Electric Capital Corporation
Haslemere NV and GE Real Estate announced on 4 June 2004 that General Electric Capital Corporation had completed the acquisition for cash by way of a private treaty acquisition, 98.8% of the shareholdings in Haslemere NV.

Statutory Buy-out Proceedings
Since acquisition, General Electric Capital Corporation has commenced statutory buy-out proceedings in the Netherlands over the shares held by the remaining shareholders at the same equivalent Euro price per share as it has paid to the 98.8% shareholders. The price paid on 3 June 2004 was € 10.39 per share2,3. It is anticipated that this procedure will take between 6 and 24 months to complete.

On application to the UK Listing Authority and Euronext Paris, on which the Company had second

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