JHSF Participacoes S.A. Adjusted Net Income Reaches R$94.3 Million in 2007, 29% Growth Over 2006

SAO PAULO, Brazil, March 13 /PRNewswire-FirstCall/ -- JHSF Participacoes S.A. ("JHSF") (Bovespa: JHSF3), one of the leading companies in the Brazilian real estate industry, with a significant presence in large-scale and mixed-use residential and commercial projects, development and management of shopping malls, office rentals and high-end hotels, today announced its results for 2007. The full release is available at http://www.jhsf.com.br/ir

Highlights
-- Net Operating Revenue amounted to R$305.5 million in 2007, representing
a growth of 112% over 2006. In 4Q07 we reached R$131.1 million, a 289%
increase over 4Q06.
-- Gross Profit was R$158.2 million in 2007, 136% higher than 2006,
representing a Gross Margin of 51.8%. In 4Q07 Gross Profit reached
R$70.0 million, a 308% growth compared to 4Q06, with a Gross Margin of
53.4%.
-- Adjusted EBITDA* for 2007 grew 128% in comparison to last year,
reaching R$130.2 million (Adjusted EBITDA was R$58.7 million in 4Q07,
an increase of 318%). Adjusted EBITDA Margin was 42.6% in 2007
compared to 39.5% in 2006 (44.7% in 4Q07).
-- Adjusted Net Income* of R$94.3 million in 2007 was 29% higher than
2006, which had recorded a significant non-operational gain of
R$34.4 million. Excluding the above-mentioned non-recurring gain in
2006, growth was 142% (Adjusted Net Income in 4Q07 was R$44.0 million
and growth was 780% excluding non-recurring gain). Adjusted Net Margin
reached 30.9% in 2007 and 33.5% in 4Q07.
-- Potential Sales Value (VGV) launched in 4Q07 reached R$450 million,
including the launching of the first phase of Fazenda Boa Vista in
November 2007, with 44% sold by the end of December 2007.
-- Contracted Sales reached R$509.2 million in 2007 (R$308.6 million in
2006), due mainly to the sales success of Fazenda Boa Vista first phase
sales, amounting to R$200.0 million, and Parque Cidade Jardim with
R$309.2 million.
-- By the end of 4Q07, 70% (62% in 3Q07) of the Parque Cidade Jardim
residential towers were sold, with the first phase reaching 87%
(since April 2006), second phase 77% (since December 2006), and third
phase reaching 40% (one tower since May 2007 and another since December
2007).
-- Current launching schedule for 2008 includes seven different projects
with VGV totaling R$1.9 billion, compared to three at the time of the
IPO. This is the result of our initiatives towards diversification.
-- In shopping malls and office rental divisions, we added the fifth mall
to our portfolio with the Manaus deal, raising our gross leasable area
(GLA) to 175,000 sq.m, which represents a 42% growth over the GLA at
the time of the IPO. We will continue to raise our proprietary GLA,
mainly through development of new shopping malls, which provide
attractive rates of return.
-- The Board of Directors approved, ad referendum, a dividend distribution
totaling R$15.0 million, or R$0.0351864264 per share, for the next
shareholders' meeting. Payment will begin on March 27, 2008.
-- Manaus Transaction: In February 2008, we signed a memorandum of
understanding for the acquisition of 86,500 sq.m of land in the
city of Manaus to develop a project that includes nine residential
towers targeted at the upper-middle income group and two office
towers, totaling an estimated VGV of R$400 million, as well as a
shopping mall with GLA of 32,000 sq.m (78% stake for JHSF), with
the possibility of expansion up to 50,000 sq.m. This transaction
is fully in line with our strategic plan of developing large-scale
and mixed-use projects, which complement each other by adding synergy
of activities and increasing the project's added value, as well as
geographical and portfolio expansion.

Consolidated Financial Indicators for 2007, in R$ millions, except indicated as otherwise:

Contracted Sales: 509.2
Net Revenues: 305.5
Gross Profit: 158.2
Gross Margin: 51.8%
Adjusted EBITDA: 130.2
Adjusted EBITDA Margin: 42.6%
Adjusted Net Income: 94.3
Adjusted Net Margin: 30.9%

* Adjusted Net Income and Adjusted EBITDA exclude IPO-related expenses incurred in the period. Additionally, Adjusted Net Income excludes minority interest.

The information contained in this release is presented in Brazilian reais and according to Brazilian accounting practices (BR GAAP) except where otherwise indicated. In the second half of April 2007, commercial properties were added to the business of JHSF Participacoes S.A. To facilitate understanding of the current and future businesses, as well as comparison with past performance, the Supplementary Consolidated Pro Forma Income Statements have been prepared as if JHSF Participacoes S.A. had been created on January 1, 2006, and as if the operations of the commercial real estate properties were acquired on the same date.

2007 Results Conference Call

English
March 17, 2008
12:00 p.m. (EDT)
1:00 p.m. (BR)
Tel.: (1 973) 935 8893
Code: 36433121
Replay: (1 706) 645-9291

Portuguese
March 17, 2008
10:30 a.m. (EDT)
11:30 a.m. (BR)
Tel.: (55 11) 2188 0188
Code: JHSF
Replay: (55 11) 2188 0188

Live webcast available at http://www.jhsf.com.br/ir

IR Contact
ri@jhsf.com.brhttp://www.jhsf.com.br/ir
55 11 3702-JHSF

Eduardo S. Camara
Marcio Fenelon
Bruno Fritsch

MZ Media Relations
55 11 3186-3883

First Call Analyst:
FCMN Contact:

Source: JHSF Participacoes S.A.

CONTACT: Investors, Eduardo S. Camara, Marcio Fenelon, or Bruno Fritsch,
+011-55-11-3702-JHSF, ri@jhsf.com.br, all for JHSF Participacoes; Media, MZ
Media Relations, +011-55-11-3186-3883, for JHSF Participacoes

Web site: http://www.jhsf.com.br/ir

2008-03-13 17:41:58 0312409 PRNEWSWIRE