Maia, September 6th 2006

A growth of 118% compared to the same period of last year

Sonae Sierra shows Net Profit of €87.4 million in the first six months of 2006

• EBITDA grows 30.4% to €73.9 million
• Direct Profit increases 51% to €41.3 million
• NAV per share reached €41.72
• Owner or co-owner of 39 Shopping and Leisure Centres with more than 1.6 million m2 of GLA

Sonae Sierra's Net Consolidated Profit (after minority interests) reached € 87,4 million for the first six months of 2006, an increase of 118% compared to the same period of last year.

In consolidated terms, Sonae Sierra ended the first six months of 2006 with Direct Profits of € 41,3 million, which represent an increase of 51%, compared with the first six months of 2005. Indirect profits were € 98,9 million, an increase of 118% compared to the same period of last year.   EBITDA was € 73,9 million in the first half of 2006 compared to € 56,7 million in the first half of 2005, which represents an increase of 30,4%.

As of  30 June  2006, the NAV per share  ("Net Asset Value") of the attributable property portfolio stood at € 41,72 (€ 38,90 as of 31/12/2005), an increase of 7,3% during the first six months of 2006.

As observed in  2005, Sonae Sierra´s Consolidated Results were greatly influenced by the inaugurations and acquisitions  of new shopping centres and  by the increase in value of assets owned, as a result of a general decrease in yields in Portugal and Spain.

During the first six months of  2006 there was a considerable growth in activity resulting from the opening in 2005 of Plaza Éboli (Madrid, Spain), LoureShopping (Loures, Portugal), Serra Shopping (Covilhã, Portugal) and Mediterranean Cosmos (Thessaloniki, Greece and the recent inauguration of RioSul  (Seixal, Portugal). The activity was also influenced by the acquisitions of Valecenter  (Marcon, Italy), Airone  (Monselice, Italy) and Plaza Sul  (Brazil, São Paulo).

Expansion project in development

Sonae Sierra continues to pursue its expansion strategy, developing a significant portfolio of projects in different stages of development, to which new business opportunities may be added, in markets where the Company is already present, or even in new markets.

Among  the  most  significant  ongoing  developments  we  highlight,  in  Portugal,  the  "VIII Avenida  Shopping"  (São  João  da  Madeira),  due  to  open  in  the  Autumn  of  2007  in  an investment of €48,5 millions, and the future "Évora shopping and leisure centre", a project that  is  the  result  of  the  expansion  of  the  already  existing  Modelo  and  represents  an investment of  €  60 million. For  2007 is also expected the opening of  "Lima Retail Park" (Viana do Castelo), a project that is result of the 50% partnership in Portugal with Miller Developments.

In Spain, Sonae Sierra is developing "Plaza Mayor Shopping" (Málaga), in a partnership with Castle City (75/25), and "El Rosal" (Ponferrada), with the Mall Group (70/30).

In  Italy,  Sonae  Sierra  has  three  ongoing  projects  at  present:  "Freccia  Rossa"  (Brescia), already under construction,  "Gli Orsi"  (Biella), developed in partnership with NovaCoop; and "Le Terrazze" (La Spezia), due to open in the Spring of 2008.

During  the  1st  half  of  2006,  Sonae  Sierra  decided  the  total  write-off  of  the  "Caselle" investment  (Italy).  This  decision  was  taken  given  that  the  agreement  Sonae  Sierra  had established  with  the  land  vendors  could  not  be  executed  according  to  the  initially established deadlines.  Although the  project  had obtained the  necessary detailed zoning plan  approval,  third  parties  have  challenged  this  approval  by  filing  complaints  that jeopardized the timing of the development of the project and, therefore, the closing of the agreements with the vendors. Sonae Sierra is closely monitoring the situation, in order to be  fully  updated  and  to  exploit  any  opportunity  that  might  arise  to  establish  a  new agreement.

In Germany,  the  projects  under  development  are "Alexa" (Berlin),  currently  under construction  and  commercialisation  and  a  result  of  a  partnership  with  Foncière  Euris (50/50),  the  "3DO"  (Dortmund),  of  which  Sonae  Sierra  owns  100%,    and  "Weiterstadt" (Frankfurt), resulting from the acquisition of land already licensed.

In Greece, in a partnership (50/50) with the Greek group Acropole Charagionis, Sonae Sierra Sierra won a 40 year concession to develop the "Galatsi Olympic Hall" (Athens) - one of the 2004 Olympic Games areas - and exploit it as a shopping and leisure centre.

Finally, in Brazil, Sierra Enplanta is going on with the construction of  "Shopping Campo Limpo" (S. Paulo) in partnership with Tivoli EP, due to be completed before the year end.

Sonae Sierra, www.sonaesierra.com, is an international shopping centre specialist, with a passion for bringing innovation and excitement to the shopping and leisure centre industry. The Company owns or co-owns 39 Shopping Centres in Portugal, Spain, Italy, Greece and Brazil, with a total Gross Lettable Area  (GLA) of more than  1,6 million m2. Currently, Sonae Sierra is developing 14 more projects in Portugal, Spain, Italy, Germany, Greece and Brazil, with a total GLA of more than 480.000 m2. The company has earned an international reputation for the development of innovative products as well as for its management skills, and has been awarded more international prizes than any other company in this sector.

Attached: Sonae Sierra's Consolidated Profit and Loss Account, and Consolidated Balance Sheet