Press Release - October 29th 2004

For the nine months ended 30 September 2004

Sonae Imobiliária records net profit of € 45.32 million

• Direct Profits grew 36% to € 35.5 million
• EBITDA grew 12.6% to € 75.44 million
• Sale of 50% of Parque Atlântico to the SIERRA Fund for € 26.1 million
• Opening of Luz del Tajo in Toledo, Spain

The consolidated net profits (after minority interests) of Sonae Imobilária totalled € 45.32 million for the third quarter 2004, compared to € 170.52 million for the same period of last year. However, last year's figure was impacted both, by the set up of the SIERRA Fund (September), and by the 50% sale of Centro Vasco da Gama (March).

In consolidated terms, Sonae Imobiliária ended the third quarter of 2004 with Direct profits of € 35.5 million, equal to an increase of 36% compared to the same period of last year.

Consolidated operational cash flow (EBITDA) reached € 75.44 million compared to € 66.99 million in the third quarter of 2003, an increase of 12.6%, despite the sale of 50% of Centro Vasco da Gama to ING Real Estate in March 2003, with the consequent reduction in rents and other income. EBITDA was positively influenced by the openings of  Parque  Atlântico (Azores,  Portugal),  Coimbra  Retail  Park (Coimbra,  Portugal), Estação Viana  (Viana do Castelo, Portugal) and the opening of the expansion of CascaiShopping (Cascais, Portugal) in 2003, as well as by the openings of Dos Mares (Murcia, Spain), Avenida M40  (Madrid, Spain) and Boavista Shopping (São Paulo, Brazil) during the current year. Late last September, and therefore not influencing the EBIDTA,  Shopping  and  Leisure  Centre  Luz  del  Tajo,  in  Toledo,  Spain,  was inaugurated, representing an investment of € 77 million.

Also in September 50% of Parque Atlântico, in the Azores, was sold to the SIERRA Fund for € 26.1 million, which generated a profit of € 0.9 million.

The  consolidated  Balance  Sheet  shows  the  sound  financial  position  of  Sonae Imobiliária. Gearing (measured as net indebtedness as a percentage of total assets less cash and equivalents) was 26.3% as at 30 September 2004, a very favourable percentage for this type of business.

Rental Income continues to grow

The overall performance of Sonae Imobiliária's shopping and leisure centres (owned or co-owned) was positive and in line with expectations.

In Portugal, the total rental income of Sonae Imobiliária's  14 shopping and leisure centres, 1 retail park and 2 commercial galleries increased 13.9% compared to the same period of 2003. It should be noted that Parque Atlântico (Azores), Estação Viana (Viana do Castelo) and Coimbra Retail Park (Coimbra) opened during the fourth quarter of 2003. On a like-for-like basis, total rental income increased 6.7%.

In Spain, Sonae Imobiliária is the owner  (or co-owner) of  9 shopping and leisure centres, with a total of 427 thousand m2 of GLA. Total rental income increased 11.8% compared to the same period of 2003. It should be noted that Dos Mares (Murcia), Avenida M40 (Madrid) and Luz del Tajo opened during 2004. On a like-for-like basis, total rental income increased 2.1%.

In Brazil, Sonae Imobiliária owns or co-owns 7 shopping centres after the opening of Boavista Shopping, in São Paulo, last April. Representing a total GLA of 242 thousand m2. Total rental income from the Brazilian portfolio increased 14.1% in Brazilian real, compared to the same period last year. On a like-for-like basis, growth was 10.3%.

Developments being marketed in national territory

During the third quarter of 2004, the construction and marketing of the three Shopping Centres under development, Covilhã Shopping (Covilhã), LoureShopping (Loures), and Rio Sul (Seixal), continued as planned. These centres are expected to open from the autumn of 2005 onwards.

In the meantime, the proceedings required for the beginning of the construction of Setúbal Retail Park, a joint development with Miller Developments, are underway.

Reinforcement in Spain

The construction and marketing of the shopping and leisure centre Zubiarte, Bilbao, are proceeding at a brisk pace. This joint venture between Sonae Imobiliária and the ING Group  (50/50)  is scheduled to open  on  26 November. This project  represents an investment of € 83.4 million.

Construction and marketing continues at Plaza Éboli shopping and leisure centre in Pinto (Madrid region). The centre, in partnership with the Eroski Group (65/35), is scheduled to open in the spring of 2005, and represents an investment of € 55.5 million.

Construction of Plaza Mayor Shopping, Malága, an expansion of the Plaza Mayor Leisure Centre, is expected to begin by the end of the current year. This development is a joint venture with Castle City (75/25)

New international developments

The  ALEXA  shopping  and  leisure  centre,  at  Alexander  Platz  in  Berlin,  is  being developed in joint venture with Foncière Euris. An excavation license has already been obtained,  and  construction  is  expected  to  start  before  year-end.  Meanwhile,  the development of the second shopping and leisure centre in Germany, the  3DO, in Dortmund, continues.

A set of other important developments are also progressing in other European countries, namely  in  Greece (Aegean  Park,  in  Athens,  and  the  Mediterranean  Cosmos,  in Thessalonica), and in Italy (Brescia Centre, in Brescia).

In Brazil, the expansion and renovation of the Shopping Penha (east side of São Paulo) is almost concluded.

Shopping Centres under management increase activity

The Property Management business continued to expand during the first nine months of 2004. The business now manages more than 1,7 million m2 of GLA.

In Portugal, by the end of the third quarter of 2004, Sonae Imobiliária managed 936 thousand m2 of GLA. Compared to the same period of 2003, sales grew 10.1% and visits increased 4.1%. On a like for like basis, sales grew 4.3% and visits 0.4%.

In Spain, after the opening of Luz del Tajo (Oviedo), the management portfolio now includes 10 shopping centres and 2 galleries. Sonae Imobilária currently manages 482 thousand m2 of GLA. Performance was positive during the period under analysis with a 19.4% increase in sales and 13.7% increase in visits. On a like-for-like basis, sales and visits increased 6.9% and 2.1%, respectively.

In Italy, Sonae Imobiliária manages in a joint venture with Espansione Commerciale, the Orio Centre in Bergamo, one of the largest Shopping Centres in Italy. In view of the economic situation in Italy, the performance of the centre is considered reasonable with visits and sales at the same level as last year. The Company signed contracts whit Pirelli Real Estate to  become  the property manager  of two new shopping  centres  to be inaugurated early 2005.

In Brazil, visits increased 11.3% over the same period of 2003), with sales increasing 16.6% (in Brazilian real) compared to the same period of 2003. On a like-for-like basis, visits increased 5.9% and sales increased 13.8%.

Annexe: Consolidated Financial Statements.