R?SULTATS 2006 DU GROUPE COLONIAL : LES B?N?FICES DU GROUPE AVANT IMP?TS ET INT?R?TS MINORITAIRES S'?LEVENT ? 951 MILLIONS D'EUROS, UNE AUGMENTATION DE 56 % PAR RAPPORT ? L'ANN?E DERNI?RE.

RÉSULTATS DU GROUPE COLONIAL

RÉSULTATS 2006 DU GROUPE COLONIAL : LES BÉNÉFICES DU GROUPE AVANT IMPÔTS ET INTÉRÊTS MINORITAIRES S'ÉLEVENT À 951 MILLIONS D'EUROS, UNE AUGMENTATION DE 56 % PAR RAPPORT À L'ANNÉE DERNIÈRE.

Le Groupe a enregistré un bénéfice net de 680 millions d'euros, avant impôts et intérêts minoritaires, ce qui représente une augmentation de 54 % par rapport à l'année précédente.

Cette évolution est le résultat d'une croissance importante du secteur de la location, en augmentation de 14,2 %, et d'une excellente revalorisation de l'actif économique, lequel atteint 716 millions d'euros.

These good results are the due to the composition of the company's assets, focused on rentals, and especially their location in the best districts of Paris, Barcelona and Madrid. 56% of its income from rentals comes from Paris, 24% from Madrid and 20% from Barcelona.

The quality of the company's properties and the healthy state of the markets has meant that the average occupancy of the rental properties reached 98.3% in December 2006, surpassing the 97.5% level reached in December 2005 which already seemed unbeatable based on past history.

The valuation on 31 December 2006 appraises the company's properties at €7,245 M (€1,151 M more than in 2005), 83% of which are rental properties and the remaining 17% development properties. In like for like terms, the value of the properties has increased by 15.7% over the previous year.

The NAV per share is €59.28, 31% higher than in December 2005.

Investments for the year just past came to €670 M (€521 M used for property acquisition and asset development projects, and €149 M for development and land).

The breakdown of the investments continues to reflect the company's commitment to focusing on the most stable property business with recurring generation of profits.

MERGER BETWEEN INMOCARAL AND COLONIAL APPROVED

This morning the Inmocaral Group held an Extraordinary Shareholders' Meeting which approved the merger between the Inmocaral Group and the Colonial Group with the former absorbing the latter, with all its assets transferred to the Inmocaral Group. On the 20th of this month, an Extraordinary Shareholders' Meeting of the Colonial Group voted the same way.

The approved swap rate is 3 Colonial shares for 40 Inmocaral shares which leads to an increase in net worth of €219 M. A proposal will also be made to change the business name of the Inmocaral Group and replace it with Inmobiliaria Colonial, S.A.

The estimated total value of the assets of the new Colonial company (taking into account its holding in FCC and the estimated value of the Riofisa assets) will be over €12,500 M.

Ranked by value of its assets, the Company will be the fourth largest in Europe with a diversified business, with over 65% of properties being rented or in development for rental, and a balanced presence in the main European markets.

Contact Details:

Pilar Suárez-Carreño Tel.: 91 575 45 05 [email protected]