business & financial news

Annual general meeting Held on June 22, 2007, Solidere’s annual general meeting, presided over by chairman Nasser Chammaa and attended by the board of directors: • Approved the audited financial statements for the year 2006; taking note of accumulated profits and of the US$132 million net income of the year, resolved to transfer 10% of net income to retained earnings, and distribute 12 US$165 million in the form of US$1 per share held, as per the shareholders’ register at the general meeting date, with distribution to take effect as of September 14, 2007. 3 • Gave the chairman and members of the board of directors the authorizations stipulated in 1,2 Souks Articles 158 and 159 of the Lebanese 3 Annual general meeting commercial code. Chairman’s message • Cleared the chairman and members of the board of any liability for matters relating to the This has been a crucial year, with times of high and low tide. Company management in 2006. We have stood the test and shown our mettle, as performance and • Approved the board of directors’ resolution resilience are the two mottos of Solidere. The first half of 2006 to purchase up to 2,357,143 shares in Solidere was very bullish and Solidere achieved excellent midyear results International Ltd (SI) at a subscription price thanks to substantial sales. Then came the tragedy of of US$70, totaling US$165 million. the July war and its aftermath. • Resolved to subscribe to an additional amount We continued to honor our commitments and implemented the of US$51.4 million in SI’s capital. decisions made previously, notably as far as share buyback and Share performance during the 2nd quarter dividend distribution. But as the politico-economic environment Solidere shares remained weighed heavily on the expectations of investors, end-users and on hold during the quarter developers, Solidere’s share performance and sales could not but as political turmoil kept Share A - Daily Closing Prices most investors in a wait- bear the brunt. Volume and-see mood, pending an The political events may have frozen the emergence of new real Financially, the year registered a net profit of US$132.2 million, outcome of the political estate projects but it did not stop existing projects, and despite 22% above 2005. Recognized sales reached US$253.3 million, 733,329415,948 544,896 $17.0 360,000 situation in the country. delays most of them are proceeding. Out of a 4.69 million sq m the highest level since inception, and the sales backlog at year end Share A traded between a However, both shares low of US$14.99 and a high BCD target floor area, 2.66 million sq m have been the subject of were US$1.2 billion. We stopped selling finished products $16.3 270,000 development, with 824,300 sq m completed, 664,800 sq m under to build a portfolio of income-generating properties. Our rental maintained their resilience of US$16.91, closing the quarter at US$15.39, a construction and the rest in various stages of planning or design. revenues of US$20.7 million are expected to grow around $15.5 180,000 around the US$16 level,

e 4.05% decrease compared threefold from 2009 due to revenues from the Beirut Souks. Our c most investors remaining We are advancing in the marketing of the South Souks, as we i r to the previous quarter. P confident in the Company’s forge ahead for their delivery in the first half of 2008, with the bank indebtedness stands at US$27.1 million. $14.8 90,000 e

r strong fundamentals and

North Souks entertainment center to follow. Other real estate Cashflows in 2007 and thereafter will be used to complete Beirut a h in the good prospects of Share B traded between a projects proceed in the Saifi Village, Wadi Abou Jamil and Zokak Souks and renovation projects, implement land development of S $14.0 0 2 Apr 07 3 May 07 31 May 07 29 Jun 07 its international expansion. low of US$15 and a high of El Blatt residential neighborhoods; around Beirut Souks and the new waterfront district and develop some selected real estate US$17.02, closing the Beirut Marina; and in high-density zones in the hotel district, on projects. We intend to honor our commitment to distribute Beginning June the shares quarter at US$15.39, a the Martyrs’ Square axis and on the BCD south and north edges. dividends regularly. This will have a positive impact on the share moved up close to the 3.69% decrease over the Share B - Daily Closing Prices US$17 level, as Solidere Government decrees issued in 2006 ratified BCD Master Plan value and will be to the advantage of shareholders. previous quarter. Volume declared dividends of US$1 amendments to reflect the new sector plans for the Martyrs’ We have decided to apply our know-how in urban regeneration per share. Shares dropped Trading activity in the local Square axis, Ghalghoul, Souks, hotel and waterfront districts. and city making within the and the Mediterranean 518,800 to lower levels towards market was reduced to Amendments proposed by Solidere for the new waterfront district, basin, teaming up with our network of consultants, investors $17.0 360,000 the end of the quarter, as around 6 million shares of and still awaiting official approval, involve the creation of two high- and operators. External projects will offer a new source of $16.3 investors sold the shares both classes, a 12% rise building clusters, one of which constitutes a special business revenue in the form of fee income as well as equity and/or profit 270,00 on a dividend play. decrease compared to the district, while maintaining in the district a majority of residential participations, while avoiding to invest any of your cash abroad. $15.5 180,000 previous quarter. and office low-rise buildings in continuity with the traditional BCD. e c To conclude, as it drew on its internal strength elements, its i The GDRs traded in the r Having sold lots in the new waterfront district, we are committed fundamentals and above all its human resources, your Company has P $14.8 90,0000 London Stock Exchange e to deliver the sites for development within the next three years. r adapted its policies in a dynamic and efficient way to market a closed the quarter at h $14.0 Reclamation works were expedited for completion by end 2007. In conditions, diversifying its activities and growing both in depth S 0 around US$16.38, an 2 Apr 07 3 May 07 31 May 07 29 June 07 2009, we expect to start installing infrastructure integrating and globally. increase of around 2.7% Formula One capability and an upgraded utility network. compared to the previous A landscape competition will be launched for the waterside park Share price (US dollars) quarter closing level. and corniche promenades. (Extracts from Annual Report 2006) Trading volume 2 3 business & financial news

Solidere International Following the amendment of clause 3 of SI is to retain management control of all Solidere’s articles of incorporation, projects it is or will be engaged in, and to relating to the Company’s object, conduct the initial master planning approved by the Council of Ministers in internally, while carrying-out the January 2007 and ratified by decree 207 execution of the projects, with the help of of March 26, 2007, Solidere established consultants and technical partners Solidere International Ltd (SI), to engage under its supervision, through subsidiary in real estate development outside the or partner companies. geographical scope of Beirut Central SI will derive: income generated by wholly District. owned investments, from the sale of land Solidere International Holdings s.a.l. or completed real estate projects, the (SIH), founding shareholder of SI, is a sale or rental of units therein; income 4 fully owned Solidere subsidiary from subsidiaries including percentage incorporated on May 3, 2007. SI was share of profits, free equity, dividends incorporated in the Dubai International and capital gains from the sale of its Financial Centre (DIFC) on June 7, 2007. stakes therein; arrangement fees as free Its capital was then increased to US$700 equity in companies it establishes, that million by way of a private placing that generates dividends and could be sold at was closed on June 30, 2007, and was a premium; options on land plots priced 5 50% over-subscribed. at cost, that could be sold at market price The object of SI is to leverage the brand after master planning, or developed and name, know-how and established later partly or wholly leased or sold; development processes of Solidere to development management fees and identify, promote, purchase, invest in, profit sharing; property management develop, market and manage, real estate fees; cash investment income. projects outside Beirut Central District. SI contracted projects: SI will take advantage of real estate • Al Zorah project, Ajman, UAE. opportunities in the Middle East and the • Sheikh Zayed project, Cairo western Mediterranean Basin. periphery, and Katameya area project, SI benefited before inception and will Cairo eastern periphery, Egypt. continue to benefit for up to 25 years of: Projects SI is submitting for: 1 6 7 8 a license to use the Solidere brand name; • Monaco territory extension. transfer of rights and obligations under • South project. projects contracted, as well as projects Solidere previously undertook studies under negotiation by Solidere and consultancies for a real estate Developers’ news 1 Foch 126 Management Services (SMS), a fully project in Tabuk city in Saudi Arabia, and owned Solidere subsidiary; as well as 2 Saifi Khan A large number of real estate projects Palace, were under construction. is currently examining the economic 3 1330 Park Avenue, Ghandour were at various stages of conception or The Courtyard residential cluster was ongoing technical and professional environment and real estate market building and The Capital Gardens support for ten years renewable. 4 Capital Gardens, Luna One and construction during the quarter. A change awaiting instructions from the potential in Saudi Arabia. 1330 Park Avenue of status was registered for the following Directorate General of Antiquities 5 Foch Residence 6 Marina Garden, Marina Tower and developments totaling 324,000 sq m of concerning recent archeological Marina Court floor area: findings on the site of the Roman 7 Bank of Kuwait and the Arab World hippodrome spine. 8 Hilton Hotel Three projects were completed: Foch 126 2 3 office building and Foch Residence in the Three projects obtained building permits Marfaa area, and 1330 Park Avenue in Mina El Hosn: Grand Hyatt hotel, Mina residential building in Mina El Hosn. Two mixed-use building and The School Eight developments were under finishing. Real Estate residential building. In Mina El Hosn: Beirut Tower, Luna One, Thirteen projects were at the building Mina El Hosn 1466, The Pavillions permit procedure stage at Beirut residential buildings and clusters in Municipality. In Mina El Hosn: ten addition to the Hilton Hotel. In the Marfaa residential buildings, Stratum, Cibco area: two residential buildings, the Engineering & Consulting Company, Bay Sémiramis and a building by Banque du Tower, New Zone Real Estate, DIB and Crédit Libanais, as well as the Town Towers, Mira Immobilière, Beirut Bab El Saray hotel. In Saifi: the Al Dalal Village Two, Property 709 Mina and a and Saifi Khan residential buildings. Private residence on lot 1375. In Saifi: In Mina El Hosn, three residential projects, Selwan building, Saifi Square and Al Marina Court, Capital Plaza and Park Mada residential buildings.

4 5 a city center of design

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Retail newcomers Business & services Armani Casa Arab Banking Corporation Cream, fashion Crédit Suisse Hogan, shoes and bags General Electric ME Middle East, beauty, Hantrade Group fashion and music Sabic, petrochemicals Sky Bar Shuaa Capital, investment bank Telecommunications Regulatory Opening soon Authority Coccinelle shoes and bags Sergio Valentino 3

1 109 Café 2 Gucci 3 Marc by Marc Jacobs 4 Bang & Olufsen 5 Armani Casa 6,7 Two Park Avenue

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6 7 open air in the city center

With the advent of spring, Beirutis stroll around the city center, keeping politics at bay. Businesses and private institutions offer outdoor activities for children and parents alike.

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cultural life and other events 1 Hrair 2 Flavia Codsi 3 David Xavier 4 William Bardawil 5 Pierre Laniau Books, lectures etc. 6 Planet Discovery 7 Pascal Moors Ceramic Lounge Instituto Cervantes 8 Arab Book Fair Tortues de mer et espèces en voie de Poems by 19th century Canarian poet disparition, by Youmna Jazzar Medlej Tomas Morales, read by Adrian and Joumana Medlej, April 21. Rodriguez Junco, with illustrations by 2 Against all odds, testimony and film, Nestor Martin Fernandez de la Torre, volunteer experience at Shepherd April 24. Orphanage, Kenya, May 13, 15, 18. Dos Poetas del 27, poems by Frederico El Bourj bookstore Garcia Lorca y Miguel Hernandez, read Qui veut détruire le Liban? by Béatrice by Marta Amador Lopez and Adrian Patrie and Emmanuel Espanol, debate Rodriguez Junco, April 25. animated by MP Ghassan Moukheiber Sociedad, lectora y bibliodiversidad, and Joe Bahout, followed by conference by José Maria Gutierrez booksigning, April 17. de la Torre, April 26. 5 Liban Mon Amour, booksigning by Dia del libro, April 23-26. Jacques Beauchard, April 27. Libraries and promotion of reading, Translating German books for children by Carme Renedo, June 6. News from the other shore, and young adults into Arabic, book Concerts presentation and public discussion booksigning by Luis Sepulveda, organized by Goethe-Institut: Shereen June 21. St Elie Church Kreidieh, Asala publishing; Ibrahim Mozart à dix cordes, classical guitarist, Sader, Dar Sader publishing; Barbara Pierre Laniau, April 20. Kassir, former Head Library and 1 Jacques Beauchard Theater Information, Goethe-Institut, May 8. 2 Shereen Kreidieh Les Pintades à Téhéran, booksigning 3 Barbara Kassir Hotel Monroe by Delphine Minoui, May 19. 4 Youmna Medlej Hake Neswan, fridays and saturdays. 1 5 Delphine Minoui 3 4 6 Planet Discovery 7 AR Junco and MA Lopez Exhibitions Other events Quartier des Arts Biel 2345 Galerie Alwane 50th Arab Book Fair, April 14-22. Continuing exhibition by Lebanese Sleepless, international DJ’s, artists. April 21, 28. Pièce Unique Forward, May 10-13. Part of It, photos by Pascal Moors, Samir Kassir garden May 18-27. Homage to Samir Kassir, June 2. Tendances, paintings by Hrair May 31 – June 30. Nada Debs 6 King Crow and King Fish, paintings by Rafic Majzoub and Semaan Khawam, May 15-25. Planet Discovery Exhibition hall Viva la diferencia, Spanish advertising posters from 2003-2006, organized by Instituto Cervantes, April 27 – May 26. Science museum L’Avion comment ça marche? Interactive exhibition, April 27 – May 25. Other Instituto Cervantes Beyrouth: un autre regard, photographs by David Xavier, April 12-27. Aida Cherfane Fine Art Paintings by William Bardawil, until May 4. Fructivore, paintings by Flavia Codsi, 67May 18 – June 8. 78 10 11 in and about the city center

1,2 Ambassadors F. Fawaz and G. Checchia with A.R. Solh 3 Finnish delegation with M. Douaidy

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Visitors at Venice Biennale Official visitors Lebanon ambassador to UAE Fawzi Fawaz; The Gabriele Basilico photo exhibit Italian ambassador Gabriele Checchia; ‘Beirut 1991’ is part of the 52nd Venice Admiral Juhani Kaskeala, commander-in- Biennale International Art Exhibition, chief of the Finnish Defense Forces with which opened on June 7. In sending ambassador to Finland in Lebanon Pertté Solidere a preview of the exhibit, Harvala. Basilico accompanied it with the comment: “Once again Beirut attracts Business and delegations the attention of art events: if only it Hubert Baur, director Vinci direction might be useful to achieve peace too!” ingénierie et moyens techniques, France; In addition to his own contribution, Fred Génin, architect-director ARCH, Basilico’s statement reflects the fact that 2007 marks Lebanon's Monaco; Guerric Péré, director Ilex inaugural participation in the Venice Biennale. The Biennale paysage & urbanisme, France; Jihad El acknowledged and welcomed this debut of Lebanon, “a country facing Khoury senior managing partner, and Sary the difficult path of peace and reconstruction”. Arab managing partner, Nikki Beach .

Foreword is the title of an exhibition in the Lebanon pavilion featuring l . Hotels and Resorts, Spain; Turiddo 2 a 6 . 6

five distinct yet related bodies of work that, in the curator’s words, “are s

Pugliese, director of strategic planning for 0 t 8 c i illuminating well beyond Lebanon's borders.” 9 Venice; Thierry Billot, chairman Pernod r / t s i 1 6

Ricard Europe, France, with a delegation D 6 l 0 Solidere GIS earns top honors a r of five; Philippe Bornens, associate 8 t 9 n e director VIVO environnement; Anne-Cécile Solidere received a special achievement award from the Environmental 1 C 1 t Lievre, Arcadis infrastructure and 6 u

Systems Research Institute (ESRI) for its Geographic Information System. 9 r i x e

transport, France; Tarek Harakeh, a B At its 27th Annual International User Conference in San Diego, California, F f investor, Spain; Jean Nallet, director , o 0

June 20, ESRI recognized Solidere’s innovative use of GIS to standardize all 6 n 6

Monaco project, Vinci; Vincent Vesval, o 0 i t

data and provide divisional and departmental intranet access. 8 c director south of France sector, Vinci GTM, 9 u / r t 0 Alain Palacci, technical director, GTM s 5 n 6

Presentations and conferences o 0 Marseilles, France. c 8 e 9 Solidere chairman Nasser Chammaa made an important presentation on R 1

Professional and academic d 1 the Company’s results and prospects, as well as on the initiation and n 6 a

Group of urban planners, France; Dr Sani 9 t l

strategy of Solidere International Limited (SI), at the annual general n e e

Yamout, US, and Ziad Yamout; professor T m ,

meeting on June 22, 2007. m n p Hans Kienle, landscape architect, o o o c l . n e e a

As part of the roadshow organized by investment bankers EFG Hermes for r Germany; architects Ayse Inci Ates Kurui v b e e e d i D L and Oktay Nayman, Ates, Turkey; the private placement of the SI capital issue, Mr. Chammaa and Mounib l o e 5 s . 0 h

Hammoud, deputy general manager for sales and business development, t

professor Abdul Halim Jaber with 12 3 w r 7 w o

toured the Gulf and Saudi Arabia, where they held one-on-one meetings f architecture students, department of 2 w 1 y , 0 n with key potential individual and institutional investors. b l architecture and design, American 2 . a t p m u r o

University of Beirut; 11 art collectors from i General manager Mounir Douaidy covered Lebanon and presented SI in m c e o . B e C Germany; architect George Kasabov, UK; one-on-one meetings to the Lebanese banking community, individual r 3 e e 9 d s i

Mary Bowman, landscape architect, US. l 4 investors and various interested international funds. e o 9 n s 1 a 1 @ Media b e e Mr. Douaidy spoke on Solidere and its international expansion at the Beirut x r o L e d

Sean Hemmerle, Metropolis magazine US; B i e

Cosmopolitan Rotary Club on June 12, 2007. l O h o s Tariq Saleh, . T P 12