During the first six months of the 2007/08 financial year, the TK Development Group recorded a profit of DKK 57.9 million after tax and minority interests against DKK 3.8 million in the first half of 2006/07. Consolidated equity totalled DKK 1,285.7 million at 31 July 2007, corresponding to a solvency ratio of 31.3 %. The balance sheet total amounted to DKK 4,104.7 million at 31 July 2007. The Group's project portfolio comprised 1,162,000 m² at 31 July 2007, about the same level as at 31 January 2007. The Group has expanded its project portfolio in the residential segment in Poland and acquired a large tract of land in Warsaw for the purpose of building 900-1,000 apartments. Phase 2 of the Vantaanportti Retail Park in Helsinki, Finland, was sold and handed over to an international investor in the first half of 2007/08. The construction of the Prague Outlet Center in Prague has commenced. The construction and letting of premises is progressing according to plan, with the centre scheduled to open in autumn 2007. In the first half of 2007/08, a DKK 85.0 million reversal was made in respect of a writedown on the site made in a previous year. During the first half of 2007/08, sales agreements were made with GE Real Estate Central Europe regarding two Czech projects, the Kolin Shopping Centre and the Liberec Retail Park. The total selling price is estimated to amount to about DKK 330 million. TK Development has exercised an option to buy half the stake in Euro Mall Holding A/S held by the Investment Fund for Central and Eastern Europe, and has thus increased its holding to 90 %. The Group still expects a profit of minimum DKK 240 million after tax and minority interests for the 2007/08 financial year. In the first half of 2007/08, the Group continued expanding its activities in existing markets to optimize TK Development's present market platform. For example, the Group has acquired a large area of land in Warsaw for the purpose of constructing 900-1,000 residential units, thus continuing the favourable development within this segment. During the period under review, the Group began developing several retail parks in both Sweden and Finland, and also acquired land in the Czech Republic to establish retail parks, including in Prague. All ongoing projects are showing satisfactory progress. Key events after the balance sheet date Bazaar, Gothenburg, Sweden TK Development and the Swedish housing developer JM AB have entered into a cooperation agreement with SKF Sverige AB to develop SKF's former factory area in the old part of Gothenburg. The contemplated project comprises a total floor space of about 75,000 m²: 30,000 m² for a shopping centre, 15,000 m² for services/commercial use and 30,000 m² for housing. TK Development will be in charge of developing the 45,000 m2 for a shopping centre, services and commercial facilities, while JM AB will have responsibility for the 30,000 m2 of housing. The acquisition of land for the project will be completed following the adoption of a local plan, expected in autumn 2009. Sale of land, Reduta, Warsaw, Poland After the balance sheet date, TK Development has completed the sale of a plot of land in Warsaw. In the first half of 2007/08, the investor signed a conditional agreement to take over the plot and a blueprint project. The last conditions for completion of the sale have now been fulfilled, and the plot will be handed over to the investor in October 2007. Outlook The Group still expects a profit of minimum DKK 240 million after tax and minority interests for the 2007/08 financial year. This estimate is based on the planned completion during the financial year of a number of sold projects. Projects covering about 29,000 m² were handed over during the first half of 2007/08. Projects of about 232,000 m² are expected to be handed over in the second half of 2007/08, bringing the total of handed-over projects in 2007/08 to about 260,000 m². Combined with a consistently good pipeline of blueprint projects representing more than 1,100,000 m² and corresponding to 3-4 years' activity at the present level, the sustained favourable outlook for the Northern and Central European markets will help underpin the earnings expectations in the longer term. This Interim Report is available at the TK Development Group's website, www.tk-development.dk. Further information regarding the 2007/08 Interim Report is available from Frede Clausen, President and CEO, on tel. +45 8896 1010.