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.: [phone] Code: 36433121 Replay: (1 706) 645-9291 Portuguese March 17, 2008 10:30 a.m. (EDT) 11:30 a.m. (BR) Tel.: [phone] Code: JHSF Replay: (55 11) 2188 0188 Live webcast available at http://www.jhsf.com.br/ir IR [e-mail]://www.jhsf.com.br/ir 55 11 3702-JHSF Eduardo S. Camara Marcio Fenelon Bruno Fritsch MZ Media Relations 55 11 3186-3883