28^th April 2000

First quarter results

Sonae Imobiliária: Consolidated Net Profit increased by 37.3%

Financial Results:

Consolidated Net Profit reached PTE 1.062 billion (€ 5.3 million), an increase of 37.3%.

• Net Profit before taxes increased by 26% to PTE 1.5 billion (€ 7.3 million)
• Operating income was PTE 1.9 billion (€ 9.6 million), an increase of 28.2%
• Total income PTE 9.4 billion (€ 46.8 million), an increase of 13.9%
• Market capitalisation PTE 94.9 billion (€ 473.3 million)

INTRODUCTION

Sonae Imobiliária's unaudited Net Consolidated Profits (after Minority Interests) grew 37.2%, from PTE 774 million (€ 3.9 million), in the first quarter of 1999, to PTE 1.062 million (€ 5.3 million) in the first quarter of 2000. During this period, its share price decreased by 3.6%

relative to December 30^th, 1999, while the BVL-30 index increased by 10.1%, taking the market capitalisation of the Company at quarter-end to PTE 94.9 billion (€ 473.3 million).

In December 31^st, 1999, Sonae Imobiliária had all its real estate assets valued independently on an open-market basis. The Company's properties were valued at PTE 316.9 billion (€ 1.58 billion) in total, of which PTE 178.2 billion (€ 888.7 million) are attributable to the Company. On that date, the NAV of these properties attributable to Sonae Imobiliária was PTE 128.9 billion (€ 643 million).

CONSOLIDATION ACCOUNTING METHOD

Aware of its responsibilities of being a leading shopping centre specialist, Sonae Imobiliária decided to adopt a more transparent approach to its consolidation accounting methods for the benefit of its Shareholders, Financial Institutions and Analysts and decided, from 2000 onwards, to consolidate:

 All its companies where it holds more than 50%, through the full consolidation method; 
All its companies where it holds 50%, through the proportional consolidation method.

In order to allow for a like-for-like comparison, the Company has prepared unaudited Proformas Profit & Loss Account and Balance Sheet as of 31/03/1999 under the above mentioned criteria.

SHOPPING CENTRES

DEVELOPMENT AND INVESTMENT

The global performance of our Shopping Centre portfolio was in line with expectations, even though Easter this year was celebrated later than usual (in April and not in March).

Following the opening of Centro Vasco da Gama, in Lisboa, Portugal, Sonae Imobiliária is currently the owner and/or co-owner of 9 shopping centres and 3  shopping galleries in Portugal with a GLA of 458,100m².

During the first quarter of 2000, the total rental income from this portfolio increased by 25.5% relative to the same period in 1999. On a like-for-like basis this increase was 12.1%.

Centro Vasco da Gama in Lisboa, Portugal, was inaugurated in April of last year and its performance exceeded all expectations. In the first quarter of this year the Centre received 4.7 million visitors and sales (excluding the Continente Hypermarket) reached PTE 6.7 billion (€33.4 million).

This year, Centro Vasco da Gama was awarded two prizes for excellence and quality, the MIPIM Award and the ICSC Europe (Berlin), continuing the high performance achieved in previous years by ViaCatarina, Centro Colombo and NorteShopping.

The expansion and renovation of Cascaishopping, Cascais, Lisboa, Portugal, continues. The

second and third phases of expansion were approved by the Town Council and will provide an increase in the GLA of 8,870 m², adding 61 new shops, 2000m² of cinema space and 1,240 car park spaces, representing an investment of about PTE 9.3 billion (€ 46.4 million). The second phase has a construction licence and work will commence soon.

The two Shopping Centre developments in Portugal (MadeiraShopping, in the Island of Madeira, with 25.000 m² of GLA, and AlgarveShopping, at Guia, Algarve, with 40.000 m² of GLA) are under construction and in line with expectations. Both projects are scheduled to open in the first half of 2001.

MadeiraShopping, developed on a 50% basis with a local partner, will have a cinema complex and a Modelo supermarket as anchors. The total investment will be of PTE 7 billion.

AlgarveShopping will have a Continente Hypermarket and a cinema complex as anchors. Total investment will be PTE10.1 billion (€ 50,6 million), excluding the hypermarket.

Sintra Retail Park, in Sintra, Lisboa, Portugal, with 16.500 m² of GLA, a 50/50 development between Sonae Imobiliária and Miller Developments, is also under construction. Scheduled to open by the end of 2000, the project is in line with budget and lettings have progressed within expectations.

In Malaga, Spain, Plaza Mayor, a shopping and leisure centre held 75% by Sonae Imobiliária and 25% by Castle City, will be licensed during the second quarter of this year and construction will immediately begin. Its opening is scheduled for the first half of 2001.

Through CCC - Consultoria de Centros Comerciales, SA, with headquarters in Madrid, Spain, a shopping centre service company 60% held by Sonae Imobiliária, the Company has continued its efforts to expand its shopping centre activities in the Spanish market.

In Greece, Sonae Charagionis, SA a company held in equal parts between Sonae Imobiliária and the Charagionis Group, with headquarters in Athens, Greece, keeps progressing on the licensing of the Aegean Shopping, a project of 60.000 m² of GLA in the Greater Athens area.

In the German market, the Company has been studying several development projects, through SonaeWest Shopping, AG (with headquarters in Dusseldorf, Germany), a shopping centre service company 80.1% held by Sonae Imobiliária and 19.9% by Westdeutsche Immobilien Bank.

In Brazil, the five shopping centres co-owned by Sonae Enplanta (50% held by Sonae Imobiliária) and managed by Unishopping (100% held by Sonae Enplanta) have performed according to expectations.

Parque Dom Pedro, in Campinas, Brazil, a shopping centre development held 80% by Sonae Imobiliária and 20% by Sonae Enplanta, which will have 90.000 m² of GLA in its first phase, already has its building licence and construction is scheduled to begin during the first half of this year.

Through Sonae Enplanta, the Company has been analysing several investment opportunities in the Brazilian market.

Sonae Imobiliária has also continued its efforts to expand in other European markets, namely in Italy and France.

MANAGEMENT

The consolidated business of Sonae Imobiliária's shopping centre management, marketing and leasing activities has continued to grow as the Company's assets under management have increased. After the opening of Centro Vasco da Gama, in Lisboa, Portugal, the acquisition of CCC, in Madrid, Spain, and Sonae Enplanta in São Paulo, Brazil, Sonae

Imobiliária is managing 3 162 leasing contracts in 893,000 m² of GLA.

The performance of the 9 major operating shopping centres that the Company owns was very satisfactory during this first quarter of 2000, with visitors and sales growing by 15.8% and 31.5% respectively, relative to the first quarter of 1999. On a like-for-like basis, visitors decreased by 1.8% and sales grew by 13.9%.

CAR PARKS

During the first quarter of 2000, SPEL - the car parking specialist held 50% by Sonae Imobiliária and 50% by SABA (Spain) - generated a turnover of PTE 191 million (€ 936 thousand), an increase of 25.4% in relation to the first quarter of 1999.

At the end of this first quarter SPEL was managing 12.394 car parking places in 8 parking facilities and metered zones.

The growth of SPEL shall continue through new municipal concessions in Porto and Matosinhos, Portugal

RESIDENTIAL

Praedium, the specialist subsidiary focused on residential development, continued the construction of Condomínio Douro Foz, in Porto, Portugal, and of Torre São Gabriel, in Lisboa, Portugal. The first is scheduled to be concluded by December 2000 and all but 3 of its 61 apartments were sold. The later, will be concluded by April 2001 and all its apartments were pre-sold.

As stated in previous reports, Praedium has started construction, in late February, of Edificio Seda, the first residential block at Quinta das Sedas, in Matosinhos, Porto, Portugal. Out of its total 78 apartments, 48 were already pre-sold.

FINANCIAL POSITION AND RESULTS

FINANCIAL PERFORMANCE

1999 1^st Quarter 1999 1^st Quarter