Sonae SGPS

Earnings Release • May 12, 2010

Maia, Portugal - May 12th 2010

An increase of 112% compared to the first quarter 2009

Sonae Sierra recorded a Total Net Profit of € 7.3 million in the first quarter of 2010

• Direct Income from Investments grew 7% to €56.9 million compared with the same period of last year
• EBITDA grew more 25% to €29.6 million in the same period
• LeiriaShopping was successfully inaugurated contributing with a gain in the period of €5 million
• Conclusion of the sale of 45% of ALEXA in Germany

The Financial statements included in this report consolidate all the companies in proportion to better represent the Sonae Sierra position.

Sonae Sierra Total Net Profit in the first quarter of 2010 was of €7.3 million compared with a Net Loss of €59.7 million in the same period of last year, which represents a growth of 112%.

The positive variation in the Total Net Result is mainly driven by the Value Created in Investment Properties that was much higher than the one in same period of last year due to lower yield expansion in 2010. In fact, for the first time since 2Q2008, we have experienced a yield compression in Spain and in Italy with all other European countries stabilized, except for Portugal where our portfolio still felt a slight yield expansion.

In the same period Sonae Sierra's Direct Result reached €14 million (+92%), compared to the €7.3 million in the same period of 2009.

Direct Income from Investments is 7% above the same period in 2009 due to the increase in the portfolio – the openings of 2009: Loop5 and Manauara, and the good performance of the Brazilian portfolio which more than compensate the small decrease of the fixed rents in the European shopping centres (1% lower on a L4L basis).

In Brazil, it should be highlighted the continuous improvement of the operational activity.

The Company's EBITDA reached €29.6 million in the first quarter of 2010, 25% above the same period of last year as consequence of the income increase explain above and the cost cutting efforts implemented in all the Businesses of the Company.

The Company sold 45% of Alexa Shopping Centre (Berlin, Germany) to Union Investment. This sale had no impact on the 2010 Profit & Loss Account given that those effects had been already booked in 2009.

Value Metrics

The Company measures its performance, in a first instance, on the basis of changes in Net Asset Value (NAV) plus dividends distributed. The Company calculates its NAV on the basis of the guidelines published in 2007 by INREV (European Association for Investors in Non-listed Real Estate Vehicles), an association of which the Company is a member.

On the basis of this methodology, the NAV of Sonae Sierra, as of the 30th March 2010, was €1.21 billion, corresponding to a NAV per share of €37.14.

Net Asset Value (NAV) amounts in € 000	31 Mar 10	31 Dec 09 (PF)
NAV as per the financial statements	982.240	994.533
Revaluation to fair value of developments	14.505	14.519
Deferred tax for properties	223.698	233.066
Goodwill related to deferred tax	-37.932	-37.932
Gross-up of Assets	25.089	24.310
NAV	1.207.601	1.228.497
NAV per share (in €)	37,14	37,78

One shopping centre inaugurated and two more under construction

Sonae Sierra's growth and expansion strategy continues although the company has adjusted the development timings to the evolution of the financial and retail markets.

Following the successful refurbishment in Portugal, of AlbufeiraShopping (Algarve) completed last January, the company has successfully inaugurated on the 24th of March LeiriaShopping (Leiria) 100% let. Representing an investment of €79 million the shopping centre had more than 120.000 visits in just four days which give us a strong confidence for its future performance.

At the end of the first quarter of 2010, the Company has two new shopping centres under construction and 9 new projects in different phases of development in Portugal, Italy, Germany, Greece, Romania and Brazil.

In Italy, Sonae Sierra is currently developing Le Terrazze in La Spezia, schedule to open in the third quarter of 2010, representing an investment of more than €125 million, which has already 50% of its GLA let. In Brazil the Company has just started the construction works of Uberlândia Shopping (Uberlândia) planed to open in 2011 with a total investment of €62 million.

Sonae Sierra's Consolidated Profit and Loss Account, and Consolidated Balance Sheet

Sonae Sierra				(Unaudited Accounts)
Consolidated Profit and Loss Account (€ 000)	1Q10	1Q09 PF *	1Q09	% 10/09PF
Direct Income from Investments	56.903	53.211	75.385	7%
Direct costs from investments	27.327	29.503	31.295	-7%
EBITDA	29.576	23.708	44.091 0	25%
Net financial costs	11.718	12.155	20.783	-4%
Other non-recurrent income/cost	-579	-494	-498	-17%
Direct profit before taxes	17.279	11.059	22.810	56%
Corporate tax	3.256	3.774	5.297	-14%
Direct net profit	14.023	7.285	17.513 0	92%
Gains realized on sale of investments	-281	-23	-23	-1140%
Impairment & Development funds at risk provision	-191	-2.987	-2.987	94%
Value created on investments	-3.254	-83.878	-132.091	96%
Indirect income	-3.726	-86.887	-135.101 0	96% #DIV/0!
Deferred tax	2.978	-20.110	-30.125 0	115% #DIV/0!
Indirect net profit	-6.704	-66.777	-104.976 0	90% #DIV/0!
Net profit before minorities	7.319	-59.491	-87.463	112%
Attributable to :
Equity holders	7.319	-59.491	-59.491	112%
Minority interests	0	0	-27.972	-100%

* 2009 PF - with all the companies consolidated by the proportional method.

Sonae Sierra	(Unaudited Accounts)
Consolidated Balance Sheet (€ 000)	31-03-2010	31-12-2009 (PF)	Var. (10 - 09)
Investment properties	2.256.413	2.304.609	-48.196
Properties under development and others	202.985	265.852	-62.867
Other assets	183.139	192.215	-9.076
Cash & Equivalents	71.413	28.987	42.426
Total assets	2.713.949	2.791.662	-77.713
Net worth	982.240	994.533	-12.293
Minorities	0	0	00
Bank loans	1.185.052	1.295.221	-110.169
Deferred taxes	267.225	272.232	-5.007
Other liabilities	279.432	229.676	49.756
Total liabilities	1.731.709	1.797.129	-65.420
Net worth, minorities and liabilities	2.713.949	2.791.662	-77.713

Sonae Sierra's Consolidated Profit and Loss Account and Consolidated Balance Sheet by business

Sierra Investments		(Unaudited Accounts)
Profit & Loss Account (€ 000)	1Q10	1Q09 PF *	% 10/09
Retail Net Operating Margin	24.963	25.180	-1%
Parking Net Operating Margin	496	384	29%
Co-generation Net Operating Margin	144	247	-42%
Shopping Centre Net Operating Income	25.604	25.811	-1%
Offices Net Operating Income	18	49	-63%
Asset Management Net Operating Income	1.230	1.674	-27%
Net Operating Income (NOI)	26.852	27.534	-2%
Recurrent net financial costs/(income)	11.767	11.620	1%
Non-Recurring costs/(income)	(110)	659	-117%
Corporate Taxes	2.626	3.551	-26%
Direct Profit	12.570	11.705	7%
Realized Property Profit	(240)	(171)	-40%
Non-Realised Property Profit	(10.562)	(54.680)	81%
Deferred tax	(116)	(8.950)	99%
Indirect Profit	(10.686)	(45.901)	77%
Net Profit for the Period	1.884	(34.197)	106%
Attributable to :
Equity holders	1.884	(34.197)	106%
Minority interests	0	0	-

Consolidated Balance Sheet (€ 000)	31-03-2010	31-12-09 (PF)	Var. (10 - 09)
Investment properties & others	1.931.470	1.995.363	-63.893
Other assets	155.397	157.318	-1.921
Cash & Equivalents	111.729	61.629	50.099
Total assets	2.198.596	2.214.311	-15.715
Net worth	682.800	688.031	-5.231
Minorities	0	0	0
Bank loans	1.072.750	1.139.137	-66.388
Deferred taxes	213.507	220.369	-6.862
Other liabilities	229.539	166.774	62.766
Net Worth, minorities and liabilities	2.198.596	2.214.311	-15.715

Sierra Developments			(Unaudited Accounts)
Profit & Loss Account (€ 000)	1Q10	1Q09 PF *	% 10/09
Project Development Services Rendered	1.284	1.603	-20%
Value created in projects	5.170	(14.123)	137%
Operating Income	6.454	(12.520)	152%
Operating costs	5.830	6.537	-11%
Net Operating Income (NOI)	624	(19.058)	103%
Depreciation and provisions	6	4	40%
Net financial costs/(income)	360	716	-50%
Non-Recurring costs/(income)	76	0	-
Corporate taxes	863	(1.161)	174%
Net Profit for the Period	(682)	(18.617)	96%
Attributable to :			#DIV/0!
Equity holders	(682)	(18.617)	96%
Minority interests	0	0	-
Consolidated Balance Sheet (€ 000)	31-03-10	31-12-09 PF	Var. (10 - 09)
Properties under development	180.574	245.479	-64.905
Other assets	66.846	50.163	16.682
Cash & Equivalents	1.812	2.724	-911

Net worth, minorities and liabilities	249.232	298.366	-49.134
Other liabilities	49.073	63.152	-14.080
Deferred taxes	3.101	4.464	-1.363
Shareholder loans	196.773	202.960	-6.187
Bank loans	3.999	33.315	-29.317
Net worth	-3.712	-5.526	1.813
Total assets	249.232	298.366	-49.134
Cash & Equivalents	1.812	2.724	-911

Sierra Management	(Unaudited Accounts)
Profit & Loss Account (€ 000)	1Q10	1Q09	% 10/09
Total income from management services	9.100	8.501	7%
Operating costs	7.005	7.236	-3%
Net operating income (NOI)	2.094	1.265	66%
Net financial costs/(income)	(216)	(323)	33%
Non-recurring costs/(income)	230	43	435%
Corporate taxes	689	585	18%
Net Profit for the period	1.392	960	45%
Atributable to :
Equity holders	1.392	934	49%
Minority interests	0	25	-100%

Consolidated Balance Sheet (€ 000)	31-03-10	31-12-09	Var. (10 - 09)
Other assets	35.893	34.343	1.550
Cash & Equivalents	28.376	28.148	228
Total assets	64.269	62.491	1.778
Net worth	1.409	4.327	-2.918
Minorities	0	134	-134
Other liabilities	62.860	58.030	4.831
Net Worth, minorities and liabilities	64.269	62.491	1.778

Sonae Sierra Brazil	(Unaudited Accounts)
Profit & Loss Account (€ 000)	1Q10	1Q09 PF *	% 10/09
Retail Operating Margin	5.197	3.429	52%
Parking Net Operating Margin	467	115	307%
Shopping Centre Net Operating Margin	5.664	3.544	60%
Total Income from Services Rendered	1.465	1.301	13%
Overheads	1.988	1.548	28%
Net Operating Income (NOI)	5.140	3.297	56%
Net financial costs/(income)	(194)	170	-214%
Non-recurring costs/(income)	48	43	12%
Corporate taxes	542	483	12%
Direct Profit	4.743	2.601	82%
Realised Property Profit	0	0	-
Non-Realised Property Profit	1.443	1.034	40%
Deferred tax	1.460	(428)	441%
Indirect profit	(17)	1.462	#DIV/0! -101%
Net Profit for the Period	4.726	4.063	16%
Atributable to:
Equity holders	4.726	4.063	16%
Minority interests	0	0	-
Consolidated Balance Sheet (€ 000)	31-03-10	31-12-09 (PF)	Var. (10 - 09)
Properties	348.091	328.273	19.818
Other assets	14.485	14.112	373
Cash & Equivalents	16.703	18.295	-1.592
Total Assets	379.280	360.681	18.599
Net worth	286.595	270.456	16.139
Minorities	0	0	0
Bank loans	33.302	32.768	534
Deferred taxes	50.323	47.089	3.234
Other liabilities	9.060	10.368	-1.309
Net Worth, minorities and liabilities	379.280	360.681	18.599

About Sonae Sierra

Sonae Sierra, www.sonaesierra.com, is the international shopping centre specialist, with a passion for bringing innovation and excitement to the shopping centre industry. The Company owns 52 Shopping Centres in Portugal, Spain, Italy, Germany, Greece, Romania and Brazil, with a total Gross Lettable Area (GLA) of more than 2 million m². Sonae Sierra has 2 projects under construction and 9 new projects in different phases of development in Portugal, Italy, Germany, Greece, Romania and Brazil. In 2009, its centres welcomed more than 436 million visits.