Economic review

Consolidated revenues amount to Euros 365.1 million, compared to Euros 334.1 million at December 31, 2007 (net of sales of DGAG properties at cost through the disposal of shares to the joint ventures with RREEF and MSREF for Euros 1,295.6 million).

Operating profit (loss) (EBIT) including earnings (losses) from investments before restructuring expenses and property writedowns is a loss of Euros 59.7 million compared to a profit of Euros 83.6 million in 2007 (net of DGAG). The decrease of Euros 143.3 million is due lower operating profit (mainly in reference to services) for Euros 29.7 million and lower earnings from investments for Euros 113.6 million (principally attributable to lower sales volumes for Euros 74 million, lower fees from capital activities for Euros 21.6 million and the negative impact generated by fair value adjustments on interest rate hedging instruments for about Euros 18 million).

Restructuring expenses incurred in 2008 total Euros 44.2 million; the writedowns taken in 2008 are equal to Euros 135.8 million compared to revaluations of Euros 67.5 million recorded in 2007. The operating profit (loss) (EBIT) including earnings (losses) from investments is a loss of Euros 239.7 million (compared to a profit of Euros 151.1 million in 2007, net of DGAG).

The loss from continuing operations is Euros 267.6 million (a profit of Euros 119.9 million in 2007 net of DGAG). In 2008, discontinued operations resulted in income of Euros 74.6 million (of which Euros 71.4 million refers to the gain realized on the sale of the 51 percent interest in Integrated Facility Management) and in 2007 income of Euros 49.5 million (of which Euros 41.4 million refers to the gain on the sale of a 49 percent stake in the same company).

Loss attributable to the equity holders of the company is Euros 195 million (income of Euros 162.8 million in 2007, net of DGAG), including Euros 74.6 million generated by discontinued operations in connection with the sale of the investment in Integrated Facility Management.

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