FDC Press Release: May 23, 2007

 Filinvest Development Corp. posts 952% income growth for 2006

Josephine Gotianun-Yap, the president of the Group’s holding company, Filinvest Development Corporation (FDC), stated that the company reported a net income of P1.6 billion for 2007 or a 952% increase from P150 million of 2006. She further said that the Group reported a net extraordinary gain of P1.1 billion resulting from the sale by Filinvest Alabang, Inc. (FAI) of its shares in stocks of Filinvest Land, Inc. (FLI) during the very successful FLI follow on offering last February 2007. But even without this extraordinary gain, net income from regular operations still jumped by a remarkable 213% to P 470 million. The real estate sales of lots, condos and club shares by its affiliate companies –  FLI and FAI increased by 61%. She added that net real estate revenues jumped from P 762 million to P 2.8 billion. As of March 31, 2007, total assets of FDC stood at P 94.6 billion from P 86.1 billion of 2006 and total equity is P 45.7 billion from P 36.1 billion.

Gotianun – Yap attributed the growth to the subsidiaries’ increased market reach made possible by product innovation, wider geographic reach, and product diversification.

FDC is expected to strengthen its foothold in the BPO sector with Northgate Cyberzone and PBCom Tower. 70,000 sqm of gross leasable floor area are currently under construction, increasing total leasable space in Northgate Cyberzone to over 130,000 sqm.

With the continued recovery of the Philippine economy, FDC is showing its optimism by developing more projects in key cities of the country. FLI will launch 14 new projects in 2007 namely Sunrise Place and Westwood Mansions in Cavite, Auburn Place in Binan, and The Glens in San Pedro, Laguna. The Arborage, a high end enclave within Brentville International, will also be launched.

FLI is also broadening its market reach by building condotels, medium rise buildings and residential resort communities. Grand Cenia is an 18-storey condotel located within Cebu’s central business district. One Oasis is a complex of nine 5-storey residential medium rise buildings conveniently located within Pasig City and is easily accessible to malls, schools, and other institutions.

The company expanded its market reach by tapping high growth regional centers. There is an ongoing expansion at North Luzon with the development of The Mac Arthur Villas in Tarlac and Asbery Villas and Claremont Village in Pampanga. Outside Luzon, there’s Kembali Coast in Samal Island, Davao which is a 50-hectare Asian-Balinese inspired island getaway offers exclusivity within the 1.8 km beachline that offers unobstructed view of the sea. Other regional projects include Escala – Cebu and West Palms – Puerto Prinsesa.

Another master-planned project of FDC is Seascapes in Mactan Island, Cebu. It is a 12-hectare residential resort community that offers a 2.5-hectare beach club, fully furnished casitas, villas, condos and 56 premium lots. It is currently selling beach club shares and the casitas fractional shares. Seascapes offers great views, accessibility to conveniences, and high-end facilities and amenities.

In the commercial sector, FAI was able to capitalize on the delivery of three completed condominium buildings in Filinvest Corporate City. FAI has five residential buildings under construction with four new towers set to launch this year.

Revenues from another subsidiary, East West Banking Corporation, went up by 12% from P 331.9 million to P 372.4 million as of March 2007. In the end of 2006, total resources of East West amounted to P 30.30 billion.

FDC remains confident about its prospects in 2007. The last five years were focused on building financial strength among subsidiaries by improving bottom lines, increasing cash flow generation and carefully managing financial leverage.

The coming years will focus on growing new investments towards improving on shareholder’s equity. Aggressive moves are in the offing as  the company gears up its expansion strategy geared for long-term growth and stability.