Sonae Sierra recorded a Net result of €13 million in the 1st quarter of 2012

• Net result grew 25% compared to the 1^st Quarter of 2011
• Direct result reached €18 million, 24% above the first Quarter of 2011
• EBITDA grew 4%, compared to the same period, reaching €30 million
• Global Occupancy Rate of the portfolio remained stable, at 96%
• Successful inauguration of Le Terrazze (Italy) and Uberlândia Shopping (Brazil)

Sonae Sierra, the international shopping centre specialist, recorded a Net result of €13 million in the first quarter of 2012, which represents a 25% increase versus the same period of 2011. The positive variation of the Net Profit was leveraged by a 24% increase in the Direct Profits (€17.8 million in the first quarter of 2012 compared to €14.4 million in the same period of 2011), mainly as a consequence of operational efficiency gains and the improvement of financial results. Indirect Profit decreased 20% as a consequence of the inexistent valuations of investment properties in the quarter.

In some of the markets in Europe where the Company is present, there is a high level of uncertainty in what regards property values. Valuers have been stating in their reports that the significant uncertainty on the macro-economic front leads to very low levels of transactions that can serve as reference for values.

Given this, the Company decided to change its valuation policy and move from quarterly valuations to half-yearly valuations. This brings the Company in line to what is still the normal practice in most property markets.

The main events of this quarter were the opening of Le Terrazze, the Company's fifth centre in Italy, and Uberlândia Shopping, its 11^th centre in Brazil. The two new Centres represent a total investment of €229 million and increased the Gross Lettable Area (GLA) managed by Sonae Sierra by about 84,000 m².

In Portugal, the Company invested about €1 million in a new expansion phase of GuimarãeShopping, which added 1,240 m² of GLA allowing the Centre to improve its retail offer and attractiveness.

Internationally, we also highlight Sonae Sierra Brasil's successful issuance of Bonds worth R$300 million (€124 million). Also in Brazil, we strengthened our share in Shopping Plaza Sul by 30%, in exchange for a minority share of 22.2% in Shopping Penha and R$63.9 million in cash. This transaction adds control over a high quality shopping centre in the city of São Paulo, while maintaining a controlling interest in Shopping Penha thus reinforcing Sonae Sierra Brasil's strategy of searching for opportunities to acquire and strengthen its holding interests in existing assets.

EBITDA grew 4% (€30 million, compared to €29 million in the same period of 2011), reflecting the efficiency gains from the cost reduction efforts in all areas of the Company and 100% growth in development services provision to third parties, compared to the same period of 2011.

In the global portfolio managed by Sonae Sierra, like-for-like tenant sales decreased 0.8% compared to the same period of 2011, mainly due to the economic conditions in Greece, Portugal and Spain. We highlight the excellent operational performance of Brazil, with sales growth of 11.4% in Reais, compensating the performance in Europe.

The Global Occupancy Rate of the portfolio was 96%, a slight decrease of 0.7% compared to the same period of 2011, which is remarkable in face of the natural impact of the current economic situation on the occupancy and letting rates in the European retail real estate sector.

The Company's total assets under management reached €6.5 billion, a €222 million increase compared to the end of 2011, mainly due to the opening of Le Terraze and Uberlândia Shopping, since assets under management were not re-valued this quarter.

Value Metrics

The Company measures its performance, in a first instance, on the basis of changes in NAV (Net Asset Value) plus dividends distributed. Sonae Sierra calculates its NAV according to the guidelines published in 2007 by INREV (European Association for Investors in Non-Listed Real Estate Vehicles), an association of which the Company is a member.

On the basis of this methodology, the company's NAV, as of March 31 2012, was €1.19 billion, an increase of 1.1% compared to the value recorded at the end on December 2011, consequence of the net result posted in the current exercise.

Portfolio in operation and development

Currently, Sonae Sierra has 51 Shopping Centres in operation, 30 of which are located outside Portugal, namely in Spain (9), Italy (5), Greece (1), Germany (3), Romania (1) and Brazil (11). The Company has three Shopping Centres under construction which represent a total investment of about €375 million, and will add 153,900 m² of Gross Lettable Area (GLA) to the company's portfolio after their inauguration.

In Germany, Solingen Shopping is under construction, a €120 million investment which will have a gross lettable area (GLA) of 28.000 m² and is scheduled to open in late 2013. There are two centres under construction in Brazil, Boulevard Londrina and Passeio das Águas. The former, located in Londrina, state of Paraná, will have 47,800 m² of GLA, corresponding to a total investment of € 88 million, and is expected to be inaugurated in late 2012. The latter, in the city of Goiânia, state of Goiás, will be the Company's 13^th development in the country. Scheduled to be inaugurated in 2013 with a GLA of 78,100 m², this new Centre represents a total investment of about €167 million.

About Sonae Sierra

Sonae Sierra, www.sonaesierra.com, is the international Shopping Centre specialist, with a passion for bringing innovation and excitement to the Shopping Centre industry. The company is present in Portugal, Spain, Italy, Germany, Greece, Romania, Morocco, Algeria, Colombia and Brazil, and owns 51 shopping centres. Sonae Sierra is also active in third party service provision in Croatia.  Currently, the Company has 3 projects under construction and 6 new projects in different phases of completion, and is also developing two new projects for third parties. Sonae Sierra manages more than 70 Shopping Centres with a total Gross Lettable Area (GLA) of about 2.2 million m2 with about 8,500 tenants. In 2011, the Company welcomed more than 428 million visits in its Shopping Centres.

Social Responsibility project developed by Sonae Sierra

"Música por uma Ca(u)sa" distinguished at European level  

The solidarity campaign "Música por uma Ca(u)sa" has just received an honorable mention at the "ICSC Foundation European Community Support Awards" which distinguishes the campaign developed by Sonae Sierra for Acreditar - Association of Parents and Friends of Children with Cancer - for the construction of a shelter home in Porto.

Created by the International Council of Shopping Centers Foundation, this prestigious award recognizes annually a variety of social responsibility initiatives developed by the commercial real estate companies and shopping centers across Europe, according to the selection of a jury of internationally renowned experts to distinguish sector's corporate social responsibility and community outreach efforts.

Starting at an institutional event for stakeholders, to which the company associated a social cause, this Corporate Responsibility initiative by Sonae Sierra was the first impulse to the creation of a campaign that gave visibility to this Association's Cause and ensured the viability of the new Home, through the raising of new support for the project.

The campaign consisted of the activation of partnerships with Media Partners, PR actions in the Media, an outdoor teaser campaign, and free advertising in different media, and was strongly driven through social networks. The initiative was also present at information stands in Sonae Sierra Shopping Centres in Greater Porto.

This distinction highlights the success of "Música por uma Ca(u)sa", which raised more than € 40,000 throughout the five weeks of the campaign, and received about 31,000 surcharged phone calls, representing a contribution of about 20,000 euros. This action also had a strong presence on Facebook, where more than 20,000 people joined the Acreditar page and followed this solidarity chain on a daily basis. Almost 2,500 "likes" added to the more than 1.000 shares of information on the initiative, and nearly 2,000 views on the Youtube channel specifically created for the dissemination of the project.

As a result of the visibility achieved, many other companies joined this Cause organizing promotional campaigns and fundraisers, and others offered financial support, in kind and services for the construction of the House.

We built this House together!

About Sonae Sierra

New service provision contract in Portugal

Sonae Sierra will manage Caniço Shopping, in Madeira

• Sonae Sierra strengthens its leadership in the national market
• 31^st asset managed by the Company in Portugal

Sonae Sierra, the international shopping centre specialist, has signed a contract with SIVIFEGO, owner of Caniço Shopping, to manage the Shopping Centre, including the letting and daily operation, with the purpose of optimizing the centre's performance.

Inaugurated in December 2003, in the city of Caniço, in the Autonomous Region of Madeira, this Shopping Centre has a total of 6,608 m² of Gross Lettable Area (GLA), 49 shops in two levels, and a parking lot with 200 spaces, and serves a population on 24,000 inhabitants. Of the brands present in Caniço Shopping, the highlights are a Continente supermarket, Worten, TMN, Delta Café, as well as various services such as the Water Administration of the Santa Cruz Municipality, Banco Santander and Lavagem Auto Caniço Shopping. The centre also features an important leisure area, Rock's Clube, which includes bowling, karaoke and billiards.

Cristina Santos, Managing Director of Sonae Sierra responsible for Shopping Centre Management in Portugal, states that "this new contract is a clear acknowledgment of our capacity in terms of shopping centre management, thanks to our experience of more than 20 years. We look forward to working with SIVIFEGO and the tenants of this development, with the objective of asserting the centre as a quality shopping area for its visitors."

José Carlos Vieira, Managing Partner of SIVIFEGO, states he is "convinced that Sonae Sierra's professionalism and experience will contribute to improve Caniço Shopping's performance. We will work together to offer the inhabitants of Caniço a shopping centre that meets their needs in terms of leisure and commerce".

With this agreement, Sonae Sierra strengthens its leadership in the management of shopping centres and retail parks in Portugal where the Company owns 21 centres and provides services to third parties in the management of 9 more assets, in a total of more than 920,000 m² of GLA.

Sonae Sierra, www.sonaesierra.com, is the international shopping centre specialist, with a passion for bringing innovation and excitement to the shopping centre industry. The company is present in Portugal, Spain, Italy, Germany, Greece, Romania, Morocco, Algeria, Colombia and Brazil, and owns 51 shopping centres. Sonae Sierra is also active in third party service provision in Croatia.  Currently, the Company has 3 projects under construction and 6 new projects in different phases of completion, and is also developing two new projects for third parties. Sonae Sierra manages more than 70 Shopping Centres with a total gross lettable area (GLA) of about 2.2 million m2 with about 8,500 tenants. In 2011, the Company welcomed more than 428 million visits in its shopping centres.

11^th Shopping Centre from Sonae Sierra in Brazil

Uberlândia Shopping opens to the public today

• 92% of the Gross Lettable Area already let
• A € 79 million investment
• 201 shops in 45,300 m² of Gross Lettable Area
• Positive impact on the local economy: 2,000 jobs created and 21 local tenants

Sonae Sierra, through its subsidiary Sonae Sierra Brasil, inaugurates today Uberlândia Shopping, its 11^th shopping centre in Brazil.

Located in a region known as "Triângulo Mineiro", Uberlândia Shopping represents a total investment of € 79 million and has 92% of its Gloss Lettable Area (GLA) already let, which proves the quality and innovation of the project. Its opening will create more than two thousand jobs.

The new Centre, with 45,300 m² of GLA, will be an important landmark for the city, for its sophistication and differentiating character, which will provide Uberlândia with new retail, culture and entertainment alternatives, in two levels that feature 201 shops, 6 of which are large dimension shops, 21 restaurants, a Walmart hypermarket, and 5 last generation Cinemark cinemas. It also features a large parking lot with 2,400 parking spaces and a bicycle park with 170 spaces, connected to the city's urban bicycle path.

Several new brands to the region have confirmed their presence in Uberlândia Shopping,  such as All Bags, Artex HomeLifestyle, Crocs, John John, Kalunga, Lacoste, Livraria Leitura, Magic Games, Noir Le Lis, Opção Jeans, Track & Field, Zas Tras Brinquedos, and the previously inaugurated Leroy Merlin and Walmart hypermarket. Other prestigious brands will also be present, such as Arezzo, Brooksfield, Centauro, Drogasil, Fast Shop, Harry´s Brinquedos, Havaianas, Kopenhagen, O Boticário, Polishop, Siberian, Victor Hugo, Vivara, and others. The food court will also feature reference brands such as Burguer King, McDonald's and many others that strengthen the quality of the commercial offer and the variety of this new shopping destination.

According to Fernando Guedes de Oliveira, Sonae Sierra's CEO "this is the first of a set of new projects we intend to develop in Brazil, where we now have 11 centres in operation and two more under construction, which represent a total investment of €255 million. It is our intention to accelerate our growth in Brazil, taking advantage of the excellent economic performance of the Brazilian economy that has enabled Sonae Sierra to achieve very positive results in the country, and strengthen our position as one of the main players in the sector in Brazil".

Unique architectural concept

Uberlândia Shopping's architecture is inspired by the lush vegetation and natural features of the Cerrado region of Minas Gerais. The decoration features the region's colours and textures, which are present in the façades and mall. Asymmetry and different geometric shapes are prevalent in the architecture, with large glass areas for a better usage of natural light.

One of the main highlights of the centre's architecture is the Food Court, with a glass wall and outdoor terrace with a clear view of the city.

Located on a high area of the city, the centre can be seen from a great distance, which adds even more impact to its architecture. The building's façade has three large green walls overlaid with plants, covering an area of approximately 800 m².

Sustainable centre

Following Sonae Sierra's Corporate Responsibility Policy, Uberlândia Shopping has adopted several measures to minimize its environmental impact and ensure the Safety and Health of employees. It was the second shopping centre in the world and the first in the Americas to obtain joint certification (ISO 14001 and OHSAS 18001) of its integrated Safety, Health and Environment system during the construction stage of the project. The first was Le Terrazze, another Sonae Sierra centre, inaugurated last week in Italy.

Besides the adoption of architectural solutions such as the use of glass areas - which favour natural lighting and enable the saving of electric power - and the installation of a green wall in the façade, the centre's operation will also feature several environmental measures, such as the use of air conditioning devices that use less water and spend less energy, taps with automatic timers and economic flushing in WC's, with water volume control. Besides that, the centre will be illuminated with LED light fixtures, which spend up to 80% less energy than common light fixtures.

Consolidation of the presence in Brazil

With the opening of Uberlândia Shopping, Sonae Sierra now manages a portfolio of 11 shopping centres in Brazil, which represents a total GLA of 401,9 thousand m².

The Company still has two centres under construction, Boulevard Londrina Shopping, scheduled to be inaugurated in late 2012, and Passeio das Águas which should be inaugurated in 2013. The former, located in the state of Paraná, will have 47,800 m² of GLA, corresponding to an € 88 million investment, and will serve a catchment area of more than 800,000 inhabitants. Passeio das Águas Shopping, in Goiânia, state capital of Goiás, will have 78,100 m² of GLA, serving a catchment area of more than 1.6 million inhabitants. This new centre represents an investment of about € 167 million, which will make Passeio das Águas Shopping the largest and most modern shopping centre of the region.

Together, these two new projects under construction represent an investment of € 255 million, and will enable Sonae Sierra to almost double its dimension in Brazil, with a 92% increase of its GLA.

"It is our intention to permanently have two projects under construction in Brazil", states Fernando Guedes de Oliveira, Sonae Sierra's CEO. Besides the two projects currently under development (Boulevard Londrina Shopping and Passeio das Águas Shopping) our objective is to be involved in the development of another seven new projects up to and including 2016, and expand/refurbish three more centres already under operation", he announces.

About Sonae Sierra

Sonae Sierra, www.sonaesierra.com, is the international shopping centre specialist, with a passion for bringing innovation and excitement to the shopping centre industry. The company is present in Portugal, Spain, Italy, Germany, Greece, Romania, Morocco, Algeria, Colombia and Brazil, and owns 51 shopping centres. Sonae Sierra is also active in third party service provision in Croatia.  Currently, the Company has 3 projects under construction and 6 new projects in different phases of completion, and is also developing two new projects for third parties. Sonae Sierra manages more than 70 Shopping Centres with a total gross lettable area (GLA) of about 2.2 million m2 with about 8,500 tenants. In 2011, the Company welcomed more than 428 million visits in its shopping centres.

Strengthening of investment capacity in Brazil

Sonae Sierra Brasil successfully concludes the issuance of Bonds worth 300 million Reais 

Sonae Sierra Brasil, a Sonae Sierra subsidiary, has just announced to the market the successful placing of 30,000 bonds with a total value of 300 million Reais (about € 124 million).

The company's intention with this operation is to strengthen its growth strategy in this important market, and the funds raised are destined to (i) the acquisition of new property; (ii) the increase of the Company's participation in existing Shopping Centres; (iii) the eventual acquisition of new Shopping Centres; (iv) the development of new Shopping Centres and (v) the reinforcement of the Company's cash balance.

In the first quarter of 2011, Sonae Sierra Brasil successfully concluded its initial public offering, achieving a capital increase of about € 208 million (R$ 465 million) by listing its shares in the São Paulo Stock Exchange. With this operation, about 30% of the company is now free float.

For Fernando Guedes Oliveira, Sonae Sierra's CEO, "the successful placing of the Bonds is another important step for the sustained growth we have experienced in one of our key markets, Brazil. It is our intention to permanently have two projects under construction in Brazil, and therefore, besides the three projects currently under development (Uberlândia Shopping, Boulevard Londrina Shopping and Passeio das Águas Shopping) our current objective is to be involved in the development of another seven new projects up to and including 2016.  It is also our intention to expand/refurbish three more centres currently under operation, in the same period. Thus, we will continue to take advantage of the important growth the Brazilian economy is showing, that has enabled Sonae Sierra to obtain very positive results in this country."

Brazil, a market in constant growth for Sonae Sierra

Sonae Sierra Brasil is a specialist in the development and management of shopping centres in Brazil. Its activity began in 1999, when Sonae Sierra joined a local company, Enplanta Engenharia, which held shares in, and managed, five centres.

2002 was an outstanding year for the Company with the inauguration of Parque D. Pedro in Campinas, São Paulo, the largest shopping centre in Latin America at the time, with more than 108,000 m² of GLA.

In 2006, Sonae Sierra established a 50/50 partnership for its businesses in Brazil with DDR, a company listed in the New York Stock Exchange and leader in the development, ownership and management of shopping centers in the United States of America. With this partnership, Sonae Sierra Brasil was 93% owned by the Sonae Sierra and DDR, and Enplanta Engenharia owned the other 7%.

In 2011, Sonae Sierra Brasil was successfully listed in the São Paulo Stock Exchange, with Sonae Sierra and DDR maintaining control of 67% of the Company's shares, and the other 33% becoming free float and minority interests.

Currently, the Company co-owns and manages 10 shopping centres. The developments inaugurated in 2010 and scheduled to be inaugurated in the coming two years suggest good growth perspectives for the operation of Sonae Sierra Brasil.

The new projects under construction - Uberlândia Shopping (Minas Gerais), scheduled to be inaugurated on March 27th; Boulevard Londrina Shopping (Paraná) and Passeio das Águas Shopping (in Goiânia, Goiás state capital) represent a € 317 million investment, and will enable the company to almost double its dimension in Brazil, with a 92% increase of its GLA.

About Sonae Sierra

Sonae Sierra,www.sonaesierra.com, is the international shopping centre specialist, with a passion for bringing innovation and excitement to the shopping centre industry. The company in present in Portugal, Spain, Italy, Germany, Greece, Romania, Morocco, Algeria, Colombia and Brazil, and owns 50 Shopping Centres. Sonae Sierra is also active in third party service provision in Croatia. Currently, the Company has 4 projects under construction and 6 new projects in different phases of completion, and is also developing two new projects for third parties. Sonae Sierra manages more than 70 Shopping Centres with a total gross lettable area (GLA) of about 2.2 million m2 with about 8,500 tenants. In 2011, the Company welcomed more than 428 million visits in its shopping centres.

 "Le Terrazze" shopping centre opens to public tomorrow

• 98% of total gross leasable area (GLA) already let
• An investment of €150 million, creating 700 new jobs (direct and indirect)
• 102 shops on a GLA of 38,600 m2, of which 60 new brand for the city and a total number of 37 local tenants
• First shopping centre in the world to ever achieve joint Environmental (ISO 14001) and Safety & Health (OHSAS 18001) certifications during construction phase acknowledged by Lloyd's Register Quality Assurance

Sonae Sierra and ING Real Estate open to public tomorrow the new shopping centre "Le Terrazze" which is located in La Spezia, Italy. The centre represents a total investment of 150 million Euros and has a 98% of total gross leasable area (GLA) already let.

The new shopping centre, with a GLA of 38,600 m2, will hosts 102 commercial units including an Ipercoop hypermarket of 11,700 m2, 13 large stores and 16 restaurants and bars, as well as a Fitness Club Tonic with indoor swimming pool and a free covered parking for 2,000 cars.

"Le Terrazze" will offer a high quality tenant mix of local and international brands including Ipercoop, Mediaworld, H&M, Tonic Fitness, Scarpamondo, Cisalfa Sport, Deichmann, OVS Industry, Benetton, Piazza Italia, DeN Store, La Feltrinelli and Calliope.  The shopping centre will also offer a food court area with 16 restaurants and bar: Coffee House, Gelateria Antichi Sapori, Old Wild West, Giovanni Rana, Frutteria, Kikko Sushi, Gusto Siciliano, La Piadineria, Cibiamo, McDonald's, L'Osteria Ligure, Rosso Sapore, Bottega del Caffè, Road House Grill, Yoyogurt, Pollo Campero.

 Vitalization of the local economy

"Le Terrazze", developed through a 50/50 joint venture between Sonae Sierra and ING Real Estate, will create 700 new jobs (direct and indirect), excluding induced employment and hypermarket. The shopping centre will be the first phase of a wider project of urban requalification, which will give back to the citizens of La Spezia a part of their city. It will be easily accessible from the city centre - it is located just 1 km from La Spezia downtown - and also close to tourist areas such as Le Cinque Terre, Porto Venere, Lerici and Versilia.

Architectural concept

The entire concept of "Le Terrazze" is developed in harmony with the surrounding landscape and it is closely connected with the local geographic configuration. In order to render homage to the local culture and its tradition, the shopping centre's interior is characterized by a fresco painting which represents the sea and land beauties of the Ligurian territory.

Sustainable centre

"Le Terrazze" project has been focusing on Corporate Responsibility from the very beginning of its construction adopting the best practices both in terms of Environment safeguard and occupational Safety & Health.

This strong commitment has been acknowledged by Lloyd's Register Quality Assurance (LRQA) and "Le Terrazze" has become the first shopping centre in the world to ever achieve joint Environmental (ISO 14001) and Safety & Health (OHSAS 18001) certifications. Moreover, the project has achieved both certifications without any Non Conformities detected during the certification audits.

About Sonae Sierra

Sonae Sierra, www.sonaesierra.com, is the international shopping centre specialist, with a passion for bringing innovation and unique experiences to the shopping centre industry. The Company operates in Portugal, Spain, Italy, Germany, Greece, Romania, Morocco, Algeria, Colombia and Brazil owning a total of 50 Shopping Centres, and is also providing services to third parties in Croatia. Currently, Sonae Sierra has 4 projects under construction and 6 new projects in different development phases, plus two new projects for third parties. Sonae Sierra manages a total gross lettable area (GLA) of about 2.2 million m2 with more than 8,500 tenants. In 2011, the company welcomed more than 428 million visits in its shopping centres.

ING Real Estate is a pan-European developer focusing on retail-based mixed-use projects. ING Real Estate  is a business of ING Group, a global financial institution of Dutch origin offering banking, investments, life insurance, and retirement services to over 85 million private, corporate and institutional clients in more than 40 countries.

"Le Terrazze" Press Office: 

MSL Italia
Viale Vittorio Veneto, 22
20124 Milano 

Alessandro Chiarmasso
Tel: 02 77336.381 - fax: 02 77336.360
E-mail: alessandro.chiarmasso@mslgroup.com  

Mariella Piccinni
Tel: 02 77336.289 - fax: 02 77336.360
E-mail: mariella.piccinni@mslgroup.com 

Anna Elena Carusone
Tel: 02 77336.271 - fax: 02 77336.360
E-mail: annaelena.carusone@mslgroup.com

Sonae Sierra recorded a Net Profit of €9.7 million in 2011, 12% above last year

• Direct Net Profit grew 6% despite asset sales and successful IPO in Brazil
• Global occupancy rate grew to 96.8%
• Portfolio under management welcomed 428 million visits
• Five shopping centres under construction, representing a total investment of €522 million

Sonae Sierra recorded a Net Profit of € 9.7 million in 2011, a 12% increase versus € 8.7 million in the same period of 2010. The positive variation of the Net Profit was leveraged by a 6% increase of the Direct Profit, as a consequence of the resilience and improved operational efficiency of the portfolio of assets, which mitigated the negative effects of yield expansion, especially in Portugal.

Asset sales in Europe - Alexa (Germany) and Mediterranean Cosmos (Greece) in 2010 and Plaza Éboli and El Rosal, both in Spain, in 2011 - and the successful IPO in Brazil in the first quarter of 2011 led to an 8% decrease of annual Direct Income, from € 226.7 million in 2010 to € 209.2 million in 2011. As a consequence and in spite of the cost containment efforts in all areas of the Company, EBITDA suffered a 9% decrease in the same period (€ 112.8 million compared to €123.4 million in 2010).

The global portfolio managed by Sonae Sierra delivered a positive performance, taking into account the current performance of retail sales in some of the markets where the company operates, with tenant sales decreasing just 0.2% in 2011, versus 2010.

Despite the natural impact of the economic situation on rent and occupancy rates in the retail sector, the global occupancy rate of the portfolio was 96.8%, 0.5% above 2010. This figure reflects the quality of both assets and Company management.

Value Metrics

The Company measures its performance, in a first instance, on the basis of changes in NAV (Net Asset Value) plus dividends distributed. Sonae Sierra calculates its NAV according to the guidelines published in 2007 by INREV (European Association for Investors in Non-Listed Real Estate Vehicles), of which the Company is a member.

On this basis, the company's NAV, as of December 31 2011, was € 1.173 billion, compared to €1.251 billion in 31 December 2010 due to the dividend attribution and to the decrease in translation reserves arising from the depreciation of the Real.

Strategy for 2011: internationalization, service provision and capital recycling

In 2011, the main axes of the defined strategy were rigorously implemented: internationalization, capital recycling and third party service provision.

The Company started providing services in new geographies, namely in Morocco, Algeria and Croatia and started construction of two new projects.

In Germany, we started works on site in Solingen, which will have a gross lettable area (GLA) of 28,000 m² and is scheduled to open in late 2013. In Brazil we started construction of Passeio das Águas Shopping, in the city of Goiânia, the Company's 13^th development in the country. Scheduled to open in 2013, this new centre represents an investment of about € 167 million, which will make Passeio das Águas Shopping the largest and most modern shopping centre of the region. Also in 2011, Sonae Sierra inaugurated in Brazil the expansions of Shopping Campo Limpo and Shopping Metrópole.

The capital recycling strategy adopted by the Company with the purpose of ensuring its sustainable growth led to the sale, in 2011, of two centres in Spain (El Rosal and Plaza Éboli) and to the IPO of Sonae Sierra Brasil. This strategy had already been carried out in 2010 with the partial sale of Alexa (Germany) and the sale of Mediterranean Cosmos (Greece). Additionally, the Company re-financed the existing AlgarveShopping (Algarve, Portugal) loan through a new long term non-recourse mortgage-backed facility with an international Bank.

We have also reinforced and increased our third party service provision activity, with the signing of three new contracts to lease Sun Plaza, Magnolia Shopping and Vitantis Mall, in Romania. In Spain, Sonae Sierra strengthened its presence with the signing of a contract to lease Carcaixent Retail Park. In Italy, Sierra took over the management and letting of Le Isole, located in Piemonte, and the letting of Shopping Park in Milan. In Germany, we signed a contract with Bayerische Hausbau to manage Bikini Berlin, a large retail project in Berlin, scheduled to be inaugurated in 2013.

In the provision of development services area, the Company signed two new contracts, one in Morocco for the development of Marina Shopping in Casablanca and another in Croatia for the development of Vrbani Shopping in Zagreb.

Operating and under development Portfolios

Currently, Sonae Sierra has 49 shopping centres in operation, 28 of which are located outside Portugal, namely in Spain (9), Italy (4), Greece (1), Germany (3), Romania (1) and Brazil (10).

The Company has five shopping centres under construction, representing a total investment of about € 522 million.

Besides the aforementioned Solingen Shopping and Passeio das Águas Shopping, the Company continues construction in Uberlândia Shopping and Boulevard Londrina, both in Brazil. The first is scheduled to be inaugurated on March 27th, will have a GLA of 43,600 m² for an investment of € 62 million. The second will have a GLA of 47,800 m², which corresponds to an investment of € 88 million, and is scheduled to open in late 2012. In Italy, Le Terrazze is scheduled to be inaugurated on March 21 with a total GLA of 38,500 m² for an investment of more than € 125 million.

SONAE SIERRA

About Sonae Sierra

Sonae Sierra, www.sonaesierra.com, is the international shopping centre specialist, with a passion for bringing innovation and excitement to the shopping centre industry. The company is present in Portugal, Spain, Italy, Germany, Greece, Romania, Morocco, Algeria, Colombia and Brazil, and owns 49 shopping centres. Sonae Sierra is also active in third party service provision in Croatia.  Currently, the Company has 5 projects under construction and 6 new projects in different phases of completion, and is also developing two new projects for third parties. Sonae Sierra manages more than 70 shopping centres with a total gross lettable area (GLA) of about 2.2 million m² with more than 8,500 tenants. In 2011, the Company welcomed more than 428 million visits in its shopping centres.

Second market in North Africa

Sonae Sierra enters Algeria

• Creation of a service provider company in the shopping centre area
• SierraCevital isSonaeSierra's new partnership with Algerian groupCevital
  

Sonae Sierra, the international shopping centre specialist, has just entered the Algerian market with the creation of Sierra Cevital, a service provider company in the shopping centre area, including the shopping centre development, management and letting activities.

Sierra Cevital is owned by Sonae Sierra and Cevital, an Algerian group with interests in several business areas, namely in the food industry, construction, glass manufacturing and car sales. More recently, the group invested in the large retail sector, with hypermarket brand Uno.

For Fernando Guedes de Oliveira, Sonae Sierra's CEO, the "entry in this new market in another step towards the diversification of Sonae Sierra's international presence. Our partnership with Cevital allows us to join our know-how and experience in the shopping centre sector with Cevital's knowledge of the Algerian market. We're certain that the combination of these factors will have a positive impact on the development of our activity in Algeria."

Salim Rebrab, a Cevital Administrator, adds: "Currently, Algeria has deficit of shopping centres that can offer a modern shopping and leisure experience. There were several reasons for our partnership with Sonae Sierra: we have the same values of integrity and respect, we share the same vision and, especially, the ambition of becoming leaders in this sector in Algeria. Finally, the complementarity of our skills is clear, combining the knowledge of the Algerian market, on the one side, and the specialization and experience in shopping centres, on the other, which will make this partnership a success."

For the shopping centre sector, Algeria is an attractive market with 36 million inhabitants, where 60% of the population is under 30 years old, and is in rapid economic development, with a shopping centre industry with great growth potential, due to the relatively low Gross Lettable Area per inhabitant - 5 m²/1,000 inhabitants - in comparison to the European Union, which is at 226 m²/1,000 inhabitants.

In macroeconomic terms, Algeria's economy presented a GDP growth rate of 3.6% in 2010, and is expected to achieve an annual growth of 3.5% before 2013.

A sustained internationalization process

Sonae Sierra which operates in the Portuguese market for 21 years, begun its internationalization in 1999 in three markets: Spain, Greece and Brazil. In 2000, Germany and Italy joined the list, and 2007 marked our arrival in the Romanian market.  In 2010, the entry in Colombia reinforced the Company's internationalization with a new market in South America. In 2011, Sonae Sierra entered Morocco through third party service provision.

Currently, the Company has 49 shopping centres in operation, 31 of which are located outside Portugal, namely in Spain (9), Italy (4), Greece (1), Germany (3), Romania (1) and Brazil (10). In terms of new projects, Sonae Sierra currently has 5 projects under construction and 6 new projects in different phases of completion in Portugal (1), Italy (1), Germany (2), Greece (2), Romania (2) and Brazil (3). Additionally, the Company is developing two other projects for third parties in Croatia and Morocco.

About Sonae Sierra

Sonae Sierra, www.sonaesierra.com, is the international shopping centre specialist, with a passion for bringing innovation and unique experiences to the shopping centre industry. The Company operates in Portugal, Spain, Italy, Germany, Greece, Romania, Morocco, Algeria, Colombia and Brazil owning a total of 49 Shopping Centres, and is also providing services to third parties in Croatia. Currently, Sonae Sierra has 5 projects under construction and 6 new projects in different development phases, plus two new projects for third parties. Sonae Sierra manages a total gross lettable area (GLA) of about 2.2 million m2 with more than 8,500 tenants. In 2010, the company welcomed more than 442 million visits in its shopping centres.

About Cevital

A CEVITAL, www.cevital.com , is a private group, 100% family-owned. The group was created in the early 70's by Mr. Issad Rebrab, the current Chairman of the Board. With roughly 12 thousand employees, CEVITAL is present in different sectors of activity, including agro-industry (sugar, fats, liquids and solids, beverages), car sector (Hyundai, Fiat), electronic appliances (Samsung), plate glass (MGF) and distribution (Uno).

Maia Commercial Registry and fiscal Number: 502 290 811

(translation from Portuguese original)

INSIDE INFORMATION ANNOUNCEMENT

Sonae Sierra informs that its subsidiary Sonae Sierra Brasil S.A., a company incorporated in accordance with the Brazilian law, has announced, on February 6th, the sale of an additional minority ownership stake in Shopping Penha to CSHG Brasil Shopping FII, a fund managed by Credit Suisse Hedging-Griffo. 

Sonae Sierra Brasil sold 5.1% of Shopping Penha to CSHG Brasil Shopping FII for R$ 11.5 million in cash.

With the transaction, Sonae Sierra Brasil has reduced its ownership in Shopping Penha from 56.1% to 51.0%, maintaining the controlling ownership stake and management of this shopping centre. 

Shopping Penha is located in the east region of the city of São Paulo and has 29.600 m2 of GLA.

Maia, February 7th 2012

Edmundo Figueiredo
(Investor Relations)

Creation of new services department

Sonae Sierra strengthens its third party service provision capacity

• Integrated services of shopping centre development, management and letting
• Service provision as an international expansion support
• Third party service provision already cover the management of 18 shopping centres, the letting of five others and the development of two new projects 

Sonae Sierra, the international shopping specialist, has just created a new department, EMEA Sierra Services, which will be responsible for the sale and management of services to third parties in new markets in Europe, Middle East and Africa, and also for the support of the third party services provision in countries where the Company already operates. With more than 20 years of experience and operating in nine countries, Sonae Sierra now reinforces its international growth strategy through the provision of services based on the know-how acquired and developed by the Company, which enables the creation of value throughout the entire life cycle of an asset, whether it's the development, expansion, refurbishment or management of a shopping centre.

The creation of EMEA Sierra Services has the objective of offering Sonae Sierra clients a department dedicated to the sale and management of a set of high quality integrated services for shopping centres, covering the entire value chain of the business: from marketing analysis to the investment decision, design, development, marketing, letting, to operational management or even third party asset management. The services will be provided by the existing areas of shopping centre development, asset management and shopping centre management, which will provide their full support to this new area.

According to Fernando Oliveira, Sonae Sierra's CEO, "the third party service provision business area has enabled the Company not only to create a new source of revenue, but also to enter new markets, deepen our knowledge, create new partnerships, and thus be more effective in the detection of new business opportunities in of those markets, positioning itself as an important support to the Company's international expansion strategy." 

According to José Falcão Mena, Sonae Sierra's Service Department Director for Europe, Middle East and Africa, "this is an important development for Sonae Sierra as a knowledge provider and third party service provider. Our specialized integrated approach to the business, coupled with our international experience and constant ability to create unique concepts adapted to the local communities, make Sonae Sierra a partner of choice in the shopping centre industry. We're convinced that the creation of a specific structure for the sale and management of services provision of design, development, letting and management will further boost our international growth, especially in emerging markets". 

Presence in new markets

Sonae Sierra already provides services to third parties in new geographies such as Morocco - in the development of a project in Casablanca, Marina Shopping; Croatia - in the management of the development of the new shopping centre Vrbani, in Zagreb; Colombia - through the creation, in partnership, of a service provision company, Sierra Central. In the other countries where Sierra operates, service provision at the present moment falls mainly on the operational management and letting, with a total of 18 shopping centres under management for third parties, and five others where the company provides letting services. 

About Sonae Sierra

Sonae Sierra, www.sonaesierra.com, is the international shopping centre specialist, with a passion for bringing innovation and excitement to the shopping centre industry. The Company owns 49 Shopping Centres in Portugal, Spain, Italy, Germany, Greece, Romania and Brazil. Sonae Sierra is also providing services to third parties in Croatia, Morocco and Colombia. Currently, the Sonae Sierra has 5 projects under construction and 6 new projects in different phases of completion in Portugal, Italy, Germany, Greece, Romania and Brazil. Sonae Sierra manages a gross lettable area (GLA) of more than 2.2 million m² with more than 8,500 tenants. In 2010, Sonae Sierra welcomed more than 442 million visits in its shopping centres.