Press Release - April 29th 2004

In the first quarter of 2004

Sonae Imobiliária's Direct Income grows 12,4%

• Net Consolidated Profit of € 12 million
• EBITDA reached € 23 million, a 6,2% growth
• Shopping and Leisure Centre "Dos Mares" inaugurated
• Sintra Retail Park sold to the Continental Europe Retail Fund 
   

Sonae  Imobiliária's  Net  Consolidated  Profit  after  Minority  Interests (non-audited)  reached €  12,14 million. In the same period of last year, the Net Consolidated Profit reached € 16 million. However, this didn't include the minority interests from the sale of 49,9% of the SIERRA Fund. The Net Consolidated Profit before Minority Interests grew 26% reaching € 20 million.

In consolidated terms, Sonae Imobiliária ended the first quarter of 2004 with a Direct Income of € 63.9 million, which represents a growth of 12,4% versus the same period of last year.

EBITDA reached  €  23 million, which compared to the  €  21.7 million of the first quarter of  2003, represents a growth of 6,2%, despite the sale of 50% of Vasco da Gama to ING Real Estate in March 2003 - with the consequent reduction in rents and services fees - EBITDA was positively influenced by the opening of Parque Atlântico, Coimbra Retail Park and Estação Viana, and also by the conclusion of the CascaiShopping expansion in 2003.

Indirect Profits from investments reached € 13.5 million, corresponding to the sale of Sintra Retail Park, which generated a profit of about € 1.98 million, and to the total value created by the Dos Mares Centre, of €11.5 million, at the date of its inauguration.

The company's solid financial situation is reflected by a leverage (net indebtedness in asset percentage minus available funds) of 24,3%.

MAIN EVENTS

During the period between 31/12/03 and today, the following events are worth highlighting:

• Shopping and Leisure Centre  ‘Dos Mares', held by Sonae Imobiliária  (65%) and the Eroski Group (35%), opened its doors to the public on March 31st. With a total investment of € 36,5 million and 24.257m2 of GLA, it's the largest development of its kind in the Spanish region of La Manga, and it recreates the Mediterranean spirit. The centre was inaugurated with 59 of the 76 shops already let, more than 88% of its gross lettable area.
•  In February, the Sintra Retail Park, in Portugal, held in equal shares with Miller Development, was sold for € 29,7 million to the Continental Europe Retail Fund, a British fund managed by Pillar Property PLC.
• The Avenida M40 opened its doors to the public on April 20th, aiming at becoming one of the main shopping and leisure destinations for the more than two million inhabitants of the southern area of Madrid. Held by Sonae Imobiliária (60%) and the Eroski Group (40%), it represents a total investment of € 105 million, with 48.360 m2 of GLA, and more than 92% of its business surface is already let.
• CascaiShopping was distinguished by the International Council of Shopping Centres  (ICSC) with th award for Best Shopping Centre Expansion and Renovation in 2003.
• Boavista Shopping, Sonae Imobiliária's new Shopping and Leisure Centre in Brazil, opened its doors to the public on April 27th in Santo Amaro, one of the largest neighbourhoods of São Paulo. Sonae Imobiliária owns 97,5% of the Centre, and the other 2,5% are owned by Brazilian company Enplanta Engenharia, our partner in Brazil. With 23.800 m2 of GLA, it represents an investment of € 19.9 million and is regarded as the true symbol of evolution in the region.

SHOPPING CENTRES FULFIL POSITIVE EXPECTATIONS

The global performance of Sonae Imobiliária's shopping and leisure centres as a whole was in line with expectations for the 1st quarter of 2004, despite the slow and slender recovery of the economy.

In Portugal, rent income in the first quarter grew 6,2% versus the same period of last year, and tenant sales grew 3,9% on an equivalent basis - therefore not including Parque Atlântico, Coimbra Retail Park and Estação Viana.

Sonae Imobiliária owns or co-owns 14 Shopping Centres and 1 Retail Park in Portugal, with a total Gross Lettable Area (GLA) of 644 thousand square meters.

In the Shopping Centre Development Business in Portugal, the construction of LoureShopping progresses in good rhythm and the construction of Covilhã and Seixal Shoppings should start in the next few months - all scheduled to be inaugurated in the Fall of 2005.

In Spain, the portfolio of shopping centres managed by Soane Imobiliária had a good performance. Total sales grew 12,2% in the first quarter versus the same period of last year, due to the 2,7 % increase in visits.

In  Spain,  Sonae  Imobiliária  now owns  or  co-owns,  with  the  inauguration  of Shopping  and  Leisure Centres Dos Mares in March and Av. M40 in April, 8 Shopping Centres, representing a total of about 384 thousand square meters of GLA.

In the Shopping Centre Development Business in Spain, the construction and letting of Luz del Tajo in Toledo, co-developed by the Eroski Group, and Zubiarte, in Bilbao, co-developed by ING, progress in good rhythm, and are scheduled to be inaugurated this Fall.

As for the other two ongoing projects in this country, the construction of Plaza Éboli, in Pinto, Madrid, a co-development with the Eroski Group, progresses in good rhythm, and is scheduled to be inaugurated in

the Spring of 2005. The construction of the Plaza Mayor Shopping, in Malaga, co-developed with Castle City, will start soon.

In Germany, the development and marketing of the 3DO, in Dortmund, and the AlexanderPlatz in Berlin continue. For the latter, construction begins in late 2004.

In Italy, we are working on the licensing of the Brescia Center so as to begin construction still in 2004.

In  Greece,  the  construction  of  the  Mediterranean  Cosmos  in  Thessalonika,  co-developed  by  Sonae Charagionis and the Lamda Development Group progresses in good rhythm, and is scheduled to be inaugurated in the Spring of 2005. Efforts continue to be made towards the acquisition of the necessary licenses to develop the Aegean Park in Athens, a co-development with the Charagionis Group.

In Brazil, Sonae Imobiliária now owns or co-owns, with the inauguration of Boavista Shopping in April, 7 Shopping Centres, representing a total of 246 thousand square meters of GLA.

In local currency, sales grew 13,3% in comparison to the same quarter of 2003.

In the Shopping Centre development business in Brazil, the construction of Shopping Penha, in the eastern area of São Paulo, continues and is scheduled to be inaugurated this Fall.

Annex:  Consolidated  Results,  Consolidated  Balance  and  Balance  Demonstration  per Business (non audited).

Maia, April 29th 2004 The Board of Directors