Maia, March 11^th 2008

An 11% growth compared to the same period of 2006

Sonae Sierra reached a record Net Profit of €300 million

• Direct profit up 5% to € 86.3 million
• Indirect profit increased to € 213.8 million (+14%)
• Total assets up € 893 million to €4,495 million
• NAV of €1,713 million (+15%)
• NAV per share reached €52.69 (+15%)
• 435 million visits to the company's shopping centres

Sonae Sierra has consolidated, throughout 2007, its expansion and internationalization strategy, and closed last year with a portfolio of 47 shopping centres in operation, spread throughout seven countries, with a total Gross Lettable Area (GLA) of about 1.9 million m².

Amongst the most significant moments of 2007 are: (i) the entry in the Romanian market through the acquisition of a centre already in operation (River Plaza Mall) and the launch of two new projects in the cities of Ploiesti and Craiova, (ii) the four inaugurations, from which we must highlight the inauguration of Shopping and Leisure Centre Alexa, in Berlin, (iii) the strengthening and creation of new partnerships, namely the one with the German Investments' house Deka Immobilien and (iv) the increased participation in three of the existing Brazilian assets.

During 2007, Sonae Sierra was awarded in several areas, namely the best company operating in the European Shopping Centre sector award presented by the UK real estate magazine, "Property Week", and its German counterpart "Immobilien Zeitung", a prize the company had already received in 2005. Sonae Sierra was also distinguished with the Elite Lombard award for the best retail strategy in Italy; winning this distinction was particularly pleasant, as it shows the value of Sierra's consistent commitment to innovation and quality in all it does.

The Personae project, an innovative health and safety programme, won the Dupont Safety Award and Sonae Sierra also won the first-ever ReSource Award, created by the International Council of Shopping Centres (ICSC) Europe for the sole purpose of distinguishing a developer, a project, a manager or a tenant who, in the ICSC's opinion, consistently takes a long-term view of sustainability.

Sonae Sierra has the objective of being a sustainable company and becoming the best international specialist in shopping and leisure centres, reaching a leadership position in all markets where it operates. Its growth strategy is based on the ability to innovate and on a successful business model, which has at its core an integrated structure of the Company's three business areas: ownership, development and management.

THE BUSINESSES

Sierra Investments owns Sonae Sierra's assets and is responsible for the investments in Europe. Sierra Investments contributed with €198.5 million to the consolidated profit of Sonae Sierra. This contribution to Sonae Sierra's results is derived from a combination of rental income, asset management services rendered to the several assets and the increase in market values of the shopping centres it owns.

Significant events in 2007

• Acquisition of River Plaza Mall in Ramnicu Valcea, Romania, which helped to get a better knowledge of the retail market in this new country;
• Acquisition of two new centres in Germany: Müenster Arkaden and Alexa;
• Acquisition of Modelo de Albufeira and Continente de Portimão, in Algarve, Portugal;
• Acquisition of 50% of the assets of Gaia Shopping and Arrábida Shopping, and acquisition of 8ª Avenida, all in Portugal;
• Start of the construction of the first of the two Colombo Towers;
• Start of Colombo's refurbishment with a forecasted total investment of € 31 million;
• Sale of 50% of the Lisbon's LoureShopping to Deka Immobilien Investment, establishing the first partnership with a German's investment house.

Main financial indicators

• Retail operating income of €192 million, an increase of 11% when compared with 2006, mainly due to the portfolio's increase;
• Net operating income (NOI) increased by 8% to €150 million;
• Value created on properties of €180 million.

Sierra Developments is responsible for the development of the Company's shopping and leisure centres in Europe, from procurement to opening. Sierra Developments contributed with € 61.6 million to the Consolidated Net Profit of Sonae Sierra. This contribution is mainly due to the development services rendered to the several projects and to the value created on assets during the development phase.

Significant events in 2007

• Inauguration of Alexa shopping centre in Berlin, Germany, an emblematic development which involved an investment of €290 million;
• Inauguration of 8ª Avenida shopping centre in S. João da Madeira, Portugal;
• Inauguration of El Rosal shopping centre in Ponferrada, Spain;
• Inauguration and sale to PREF (the European retail park fund managed by British Land European Fund Management LLP) of Lima Retail Park in Viana do Castelo, Portugal;
• Start of new developments in Ploiesti and Craiova, in Romania.

Main financial indicators

• Development Services rendered reached € 13 million
• Value created on assets under development of € 93 million

In 2008 shopping centres Freccia Rossa and Gli Orsi, in Italy, Plaza Mayor Shopping in Spain and Pantheon Plaza in Greece are scheduled to be inaugurated. This represents an investment of € 342 million.

With these projects, Sonae Sierra will overcome by the end of 2008 the figure of 2 billion m² of GLA owned or co-owned.

Sierra Management is responsible for the property management of the Company's European shopping centres, including those owned by Sierra Investments or by third parties. Sierra Management contributed with € 5.1 million to the Consolidated Net Profit of Sonae Sierra.

Significant events in 2007

• Start of management of Alexa and Müenster Arkaden, in Germany;
• Start of management of River Plaza Mall and Arena Mall, in Romania;
• Start of management of Lima Retail Park and 8ª Avenida, in Portugal;
• Start of management of El Rosal, in Spain.

Main financial indicators

• Income from management services of € 34.1 million, an increase of 9% when compared with 2006;
• Net Operating Income €6.9 million.

Sonae Sierra Brazil operates autonomously, investing, developing and managing a number of shopping and leisure centres in Brazil.

Significant events in 2007

• Increased share in Shopping Metrópole, Shopping Plaza Sul and Tivoli Shopping. The Company has also started a major refurbishment programme at Shopping Metrópole;
• Increase in the occupancy rate, measured in GLA, from 94.5% to 95.8%;
• Started construction of Manauara Shopping, in Manaus.

Main financial indicators

• Shopping Centre Net Operating Margin increased 43%, mainly due to the increase in the occupancy rates, increase in the holdings' share and a favourable change in the Real exchange rate;
• Net Operating Income increased 46% to €25.9 million.

Consolidated Results

During 2007, Sonae Sierra recognised €13 million of gains realised on properties, as a result of the following transactions:

• Price adjustment related with the Loop 5's 50% sale to Foncière Euris;
• Sale of 50% of Lima Retail Park to PREF;
• Sale of 50% of LoureShopping to Deka Immobilien.

The total Net Profit attributable to minorities decreased by 23% and it corresponds, almost exactly, to the direct and indirect profits attributable to the Sierra Fund's external investors. This reduction, when compared with 2006, is mainly due to the fact that the OMV growth of the Sierra Fund's assets in 2007 was lower than the one occurred during 2006.

Value Metrics

1. Net Asset Value (NAV)

The first table shows the NAV of the three asset portfolios held by the Company: the properties in operation in Europe (Investments), the properties under development in Europe (Developments), and the properties held in Brazil. There is a residual amount corresponding to Cash plus other Assets and Liabilities associated with other business activities. These portfolios are valued on the basis of open-market values as determined by an independent valuer.

These figures constitute the basis for the valuation of the property portfolios held by the Company.

2. Net Operating Income (NOI)

The second table shows the Net Operating Income generated by each service activity (development, asset management and property management).

The Developments' NOI, as shown in the Profit & Loss included in the Attachment, has two main components: (i) the operational activity related with the rendering of development services to the Company's projects and (ii) the value added to projects during the development phase.

The Company books the gains in the Sierra Developments accounts for management purposes, but in the consolidated accounts the gains are only booked on inauguration, as per IFRS.

The 2007 NOI reflects the significant number of projects under development in the period - some already inaugurated others to be inaugurated in 2008.

The Asset Management activity grew by 22% when compared with last year. The favourable variance relates to higher property valuations of the existing portfolio and an increase in the portfolio under management, due to the acquisitions and openings of the period. A note to highlight that the asset management fees are linked to the assets' valuation.

Property Management shows a stable NOI, when compared with 2006. But this stability is the result of a significant increase in the Management Services Income (up 9%) that was compensated by an equally significant increase on the cost side (up 10%), mostly due to a reinforcement of the staff levels involved in this activity.

Sonae Sierra (http://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 47 Shopping Centres, Spain, Italy, Germany, Greece, Romania and Brazil, with a total Gross Lettable Area (GLA) of more than 1.9 million m². Currently, Sonae Sierra is developing 12 more projects in Portugal, Spain, Italy, Germany, Greece, Romania and Brazil, with a total GLA of more than 470.000 m². In 2007, its centres welcomed more than 435 million visits.