Sonae SGPS

Interim / Quarterly Report • Sep 1, 2008

SONAE REPORT AND ACCOUNTS FIRST HALF 2008

Table of contents

	MANAGEMENT REPORT3
	Message from Paulo Azevedo, CEO of Sonae4
1.	Key figures 6
2.	Consolidated results 7
	2.1. Consolidated income statement7
	2.2. Consolidated balance sheet9
3.	Business analysis – main highlights 11
	3.1. Retail 11
	3.2. Shopping centres 12
	3.3. Telecommunications 15
	3.4. Sonae SGPS individual financial results 17
4.	Main corporate developments 17
5.	Outlook19
6.	Corporate Governance 20
	APPENDIX 22
	Statement under the terms of the Article 246, paragraph 1, c) of the Securities code 23
	Information of the Board of Directors complying with Article 9, paragraph 1, b) of the CMVM regulation number 04/2004 24
	Qualified holdings25
	CONSOLIDATED FINANCIAL STATEMENTS26

Notes:

(1) This document was prepared in accordance with article 508-C, nr. 6, of the Portuguese Companies Act and applies to both consolidated and individual accounts of Sonae SGPS;

INDIVIDUAL FINANCIAL STATEMENTS ................................................................................57 AUDITOR'S LIMITED REVIEW REPORT................................................................................67

• (2) The consolidated and individual financial information contained in this report is subject to limited review procedures and based on financial statements that have been prepared in accordance with International Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB"), as adopted by the European Union, for the purposes of interim financial reporting (IAS 34);
• (3) In order to facilitate comparison of YTD results against the previous year, the 1H07 comparative figures have been restated (1H07^R ) to exclude Sonae Capital's contribution to the Sonae consolidated accounts during the 1H07, given the conclusion of the Sonae Capital demerger and consequent exclusion from the Sonae consolidation perimeter, from October 2007;
• (4) Sonae sub-holding's financial figures, as reported in section 2 Consolidated results, are reported on the basis of their contribution to the consolidated accounts;
• (5) Sonae sub-holding's financial figures, as reported in section 3 Business analysis, are reported on a stand-alone basis.

MANAGEMENT REPORT

Message from Paulo Azevedo, CEO of Sonae

During 1H08, Sonae achieved a very strong growth in turnover (+23.6%) and in underlying EBITDA (+11.6%, excluding value created on investment properties). Our net earnings have been affected by impacts of the increases in capitalization yields on the valuation of our shopping centres (69.2 million euros negative impact) and resulting negative value created on investment properties y.o.y (21.7 million euros non-cash negative impact) and the increases in rates Euribor (7 million euros increase in financial expenses).

Our businesses have overcome the effects of the slowdown on consumer expenditure and continued to perform well, making us more confident that we have the right strategy to face the current challenges and to take advantage of the opportunities that a tough environment always generates. Our team is committed to achieving strong results and improve our competitive positions in our markets: our Retail business continued strengthening its leadership in the Portuguese market and started internationalizing non-food operations; our Shopping Centre business continued extending its portfolio of assets under management and increased the importance of our services divisions; and our Telecommunications business has been able to accelerate growth.

Our Retail business recorded sound results in the semester, with Turnover up by 26%, including the acceleration of organic growth rates from 10% in 1H07 to 11% in 1H08, and with EBITDA, excluding non-recurrent real estate transactions, increasing by 16%. The Company continued delivering further growth on a like-for-like basis from its existing food retail stores (+2%) and non-food stores (+2%), an impressive performance if accounting for the impact on sales of the loyalty card launch in January 2007, the current adverse economic environment and the continued increase in the retail sales area in the Portuguese retail market. Retail's internationalization process is running according to plan, with two Sportzone stores already opened in Spain, out of the four units scheduled to open until the end of 2008 and the launch of Worten in the Spanish market, with the acquisition of Boulanger's Spanish stores, specializing in household appliances and consumer electronics. It is worth mentioning the continued push for innovation, visible with the launch of new retail concepts during the semester, namely a casual footwear format, Loop.

Our Shopping Centre business posted a strong improvement in the operational performance of the portfolio partially offsetting the negative impacts of the financial and real estate crisis. Sonae Sierra's positive results at the operational level show a 4.5% like-for-like increase in fixed rents in 1H08 compared to 1H07 and good EBITDA growth (27%, excluding value created on investment properties), partially mitigating the impact of the increase in capitalization yields of the properties and higher net financial costs. Notwithstanding the current market environment, and on the same methodology basis, Sonae Sierra ended 1H08 with a Net Asset Value per share of 51.2 euros, that decreased by only 2.8% when compared to year end 2007 (-1.6%, adjusting for dividends paid). Importantly, Sonae Sierra sold an additional 18% of the Sierra Portugal Fund (SPF) (8.3% after the reporting period), valued at year end 2007 NAV value, thereby decreasing its shareholding position in the fund to approximately 42%.

Our Telecommunications business continued to successfully implement its expansion strategy, posting strong organic growth as a result of a very active semester, during which the Company implemented a number of important commercial activities to increase brand awareness, sustain market leadership in the mobile broadband market and push to gain mobile residential market share by targeting the youth segment. During 1H08, Sonaecom achieved a material growth of customer revenues, up 20.9% (8.4% on a like-for-like basis) compared to the homologous period, driven by a significant increase of both its mobile customer base (+11.5%) and wireline accesses (10.1% on a like-for-like basis), despite the competitive pressures in the Portuguese telecoms market, with all players launching very aggressive promotions and lowered price offers. The fibre investment plan announced is under way, with the mass market roll-out of the 3-play offer under fibre network planned for 2H08.

Importantly, regarding the Cash Settled Equity Swap over 6.64% of Sonae shares, closed by end 2007 the company decided that, at current market price levels, it will consider the possibility of acquiring the underlying asset at the maturity date of the transaction.

Sonae faces the current market environment with a solid balance sheet, with low liquidity risk and no significant amortizations of bank loans until second half 2010. This, together with the results achieved in the first semester gives us confidence that, notwithstanding the slowdown in Portuguese and global economic growth, Sonae's determination, capacity to innovate and ambition will allow us to continue to successfully fulfil our commitment to deliver sustainable growth and value creation. However, Group net earnings will naturally depend on the impacts of the evolution of capitalization yields for the shopping centre business and of the levels of interbank interest rates on Group financing costs.

1. Key figures

During 1H08, Sonae continued to push for profitable growth in all its units, mitigating the stronger competitive pressures in both the Retail and Telecommunications markets, the downturn cycle felt in the real estate market as well as the negative impact of the slowdown of the macroeconomic environment on consumer expenditure.

Million euros
CONSOLIDATED HIGHLIGHTS	1H07(R)	1H08	y.o.y
Turnover	1,972.2	2,436.7	23.6%
Value created on investment properties (1)	102.8	-21.7	-
Operating expenses	1,907.3	2,401.3	25.9%
EBITDA excl. value created on invest. prop.	218.7	243.9	11.6%
EBITDA margin excl. value created on invest. prop (%)	11.1%	10.0%	-1.1pp
EBITDA (2)	321.4	222.3	-30.8%
EBITDA margin (%) (3)	16.3%	9.1%	-7.2pp
EBIT	199.1	78.2	-60.7%
Net income - group share (4)	100.4	24.2	-75.9%
CAPEX (4)	353.1	401.2	13.6%
CAPEX as a % of Turnover	17.9%	16.5%	-1.4pp
Net debt	2,270.3	3,138.4	38.2%
Net debt/EBITDA (last 12 months)	3.8 x	5.3 x	1.5x
EBITDA /interest expenses (last 12 months) (6)	5.5 x	3.6 x	-1.9x
Total employees	28,885	35,213	21.9%
Corporate center	55	49	-10.9%

(1) Increase (decrease) in the valuation of the shopping centres proportionally consolidated; (2) EBITDA = Turnover + value created on investment properties + other revenues impairment reversion - operating costs; (3) EBITDA margin = EBITDA / Turnover; (4) Net income attributable to Sonae shareholders; (5) Capex includes gross investments in tangible, intangible, investment properties and investments in acquisitions;(6) Interest cover; (R) Restated to exclude Sonae Capital contribution in 1H07.

• Consolidated turnover grew strongly by 23.6% to 2,436.7 million euros in 1H08, compared to 1,972.2 million euros in 1H07(R). The Retail business delivered most of the growth in turnover, with an increase in contribution of 384.4 million euros in 1H08, being able to deliver further growth on a like-for-like basis from the existing retail stores, by organically expanding its store portfolio and by successfully integrating the retail operation acquired by end of 2007.
• EBITDA excluding the impact of value created on investment properties (i.e. the increase/decrease in the market value of the shopping centres proportionally consolidated) increased 11.6%, from 218.6 million euros in 1H07(R) to 243.9 million euros in 1H08, mainly driven by a 11.3% higher contribution from the retail business, explained by the strong operational performance achieved. Total EBITDA decreased by 30.8% to 222.3 million euros in 1H08, mainly explained by lower value created on investment properties y.o.y (-21.7 million euros versus +102.8 million euros): whereas in 1H07(R) the strong compression of yields impacted positively value created on investment properties, in 1H08 the increase of the capitalization yields, although being mitigated by the good operational performance of the assets and the opening of a new shopping centre, resulted in a slightly negative value created on investment properties.
• Net income group share for the half-year amounted to 24.2 million euros, compared to 100.4 million euros in 1H07(R), mainly reflecting the increase on capitalization yields following historically low levels reached in the previous quarters, the increase in net financial costs and lower investment income.
• CAPEX increased by 48.1 million euros in 1H08 to 401.2 million euros, compared to 1H07(R), driven by the acceleration of investments in the extension of coverage and capacity of the mobile network at the Telecommunications business, and by the opening of 31 new stores by the Retail business, which increased its sales area by 15 thousand m2 in 1H08.
• Consolidated Net Debt amounted to 3,138.4 million euros, an increase of 517 million euros over year end 2007, mainly due to an increase of the Retail business net debt, reflecting its working capital seasonality and the Company's strong expansion plan in line with the targets disclosed of adding more 60,000 m2 before the end of 2008.

2. Consolidated results

2.1. Consolidated income statement

CONSOLIDATED INCOME STATEMENT 1H08 y.o.y Turnover 1,972.2 2,436.7 23.6% Retail 1,490.6 1,875.0 25.8% Shopping centres (1) 67.7 84.7 25.1% Telecommunications 408.1 465.9 14.2% Holding & others 5.8 11.0 88.4% Value created on investment properties (2) 102.8 -21.7 - Other revenues 154.7 209.1 35.2%	Million euros
		1H07(R)
Operating costs 1,907.3 2,401.3 25.9%
COGS 1,170.2 1,490.0 27.3%
Personnel costs 249.8 299.7 20.0%
General & administrative expenses 455.8 572.4 25.6%
Other operating costs 31.6 39.1 23.9%
EBITDA excl. value created on invest. prop. 218.7 243.9 11.6%
EBITDA margin excl. value created on invest. prop (%) 11.1% 10.0% -1.1pp
Retail 113.8 126.7 11.3%
Shopping centres (1) 28.6 43.9 53.4%
Telecommunications 79.1 73.5 -7.1%
Holding & others -2.8 -0.2 94.5%
EBITDA (3) 321.4 222.3 -30.8%
EBITDA margin (%) (4 ) 16.3% 9.1% -7.2pp
Provisions and impairment losses 12.9 11.5 -10.6%
Depreciation & amortization 110.4 133.1 20.6%
EBIT 199.1 78.2 -60.7%
Net financial results -49.8 -77.6 -55.7%
Financial income 24.6 19.9 -18.9%
Financial expenses 74.4 97.5 31.1%
Share of results of associated undertakings 0.9 1.3 45.0%
Investment income (5) 31.1 8.2 -73.6%
EBT 181.3 10.1 -94.4%
Taxes 42.3 0.2 -99.6%
Net income 139.0 9.9 -92.9%
Net income - group share (6) 100.4 24.2 -75.9%
Attributable to minority interests 38.6 -14.3 -

(1) Shopping centres are proportionally consolidated; (2) Increase (decrease) in the valuation of the shopping centres proportionally consolidated (50%); (3) (2) EBITDA = Turnover + value created on investment properties + other revenues -impairment reversion - operating costs; (4) EBITDA margin = EBITDA / Turnover; (5) Capital gains (losses) with financial investments plus dividends received; (6) Net income attributable to Sonae shareholders; (R) Restated to exclude Sonae Capital contribution in 1H07.

Turnover

Consolidated turnover increased by 23.6% in 1H08 compared to 1H07(R), amounting to 2,436.7 million euros, driven by turnover growth across all the business units:

• (i) 25.8% higher contribution from Retail, totalling 384.4 million euros, mainly reflecting the positive like-for-like performance achieved in the half-year (2%), the aggressive pace of organic growth over the last 12 months, with the opening of additional 63 thousand m2, and the impact of the retail stores acquired, notwithstanding the slowdown in consumer spending and the significant positive impact on sales of the loyalty card launch during the 1Q07;
• (ii) 14.2% increase from Telecommunications, totalling 57.8 million euros, mainly driven by significant customer revenue growth both in the Wireline (70.6%) and Mobile areas (5.9%), more than compensating the lower level of roaming-in tariffs and the competitive pressures in the Portuguese telecoms market;
• (iii) 25.1% higher contribution from Shopping Centres, totalling 17 million euros, primarily due to a 24.9% increase in rental income, reflecting new shopping centres opened and acquired, the increase in ownership of several shopping centres in Brazil and Portugal and the like-for-like fixed growth in fixed rents of 4.5% for the whole portfolio; services business posted a 24.1% increase in turnover, derived from the extension of the portfolio of shopping centres under management and the increase of the number and dimension of the projects in the pipeline.

EBITDA

EBITDA excluding value created on investment properties amounted to 243.9 million euros, 11.6% above 1H07(R), reflecting the following contributions:

• (i) The Retail business increased its contribution to EBITDA by 11.3%, when compared to 1H07(R). On a recurrent basis and excluding the real estate capital gains impacting y.o.y figures, the Retail contribution to EBITDA grew by 12.9 million euros, up by 12.3% over 1H07(R), reflecting the strong expansion plan combined with a focus on productivity enhancing programmes, and the integration of the newly acquired stores;
• (ii) The Shopping Centre business contribution to EBITDA, excluding value created in investment properties, grew by 15.3 million euros, up by 53% over 1H07(R), reflecting the good operational performance of the portfolio and the increase in the number of properties under management;
• (iii) The Telecommunications business contribution to consolidated EBITDA decreased 5.6 million euros when compared to 1H07(R), as a result of the planned push for organic growth that drove material top line increase in the period. The planned costs associated with the business growth efforts, including the costs of commercial initiatives implemented, the increase in competitiveness in the market and the integration costs related with the acquisitions made during 2007, explain the profitability in the period.

Total EBITDA amounted to 222.3 million euros in 1H08, 30.8% below that in 1H07(R), generating a margin of 9.1% compared to a margin of 16.3% in 1H07(R). This performance is mostly explained by lower value created on investment properties at the Shopping Centres business in 1H08 compared to 1H07 (-21.7 million euros versus +102.8 million euros): whereas in 1H07(R) the strong compression of yields impacted positively value created on investment properties, in 1H08 the increase of the capitalization yields, although being mitigated by the good operational performance of the assets and the opening of a new shopping centre, resulted in slightly negative value created on investment properties.

Net financial results

Net Financial results deteriorated by 55.7% to a negative 77.6 million euros in 1H08 compared to a negative 49.8 million euros in 1H07(R), mainly reflecting: (i) a 31.1% increase in financial expenses, explained by the Group's higher average net debt in 1H08 and by the increase of the Euribor market rates (the 3 and 6 months Euribor increasing by 0.7pp and 0.6pp, respectively compared to 1H07); and (ii) a 18.9% decrease in financial income, from 24.6 million euros to 19.9 million euros. The Group's higher average net debt in 1H08, when compared to 1H07(R), is primarily explained by the financing requirements of the retail acquisition and the progress in the development pipeline of the Shopping Centre unit, accounting with 7 more projects under development when compared to 1H07.

Investment income

Investment income totalled 8.2 million euros in 1H08, mainly comprising gains related to the launch of Sierra Portugal Fund on 27 March 2008, Sonae Sierra's second investment fund comprising 8 Portuguese shopping centres and 3 projects under development, and the corresponding placement of 49.7% of the fund to reference investors (an additional 8.3% shareholding was sold after the reporting period). When compared to 1H07(R), the investment income came down by 22.9 million euros in 1H08, with the former mainly comprising capital gains resulting from the sale of Sonaecom shares.

Net income Group share

Consolidated net income group share in 1H08 decreased by 75.9% to 24.2 million euros, compared to 100.4 million euros in 1H07(R), mostly due to the slight reduction of the value of the shopping centres portfolio, higher net financial charges incurred in the period and the 20.6% higher depreciation & amortization charges, the later driven by the increased asset base resulting from store network expansion at Retail and the extension of the mobile and wireline network at Telecommunications.

Taxes for 1H08 showed a charge of only 0.2 million euros, compared to 42.3 million euros in 1H07(R), and comprised a current tax charge of 8.8 million euros and movements in deferred taxes that generated a benefit of 8.6 million euros. The latter was driven by the recognition of additional deferred tax assets at Sonae Distribuição and Sonaecom.

2.2. Consolidated balance sheet

Million euros
CONSOLIDATED BALANCE SHEET	1H07(R)	1H08	y.o.y	2007 (5)	∆
Total Net Assets	6,110.5	7,167.1	17.3%	7,041.2	1.8%
Non Current Assets	4,354.9	5,822.6	33.7%	5,626.3	3.5%
Tangible and Intangible Assets	2,088.7	2,704.0	29.5%	2,579.7	4.8%
Goodwill	214.0	690.1	-	683.1	1.0%
Investment properties in operation (1)	1,592.8	1,905.2	19.6%	1,868.7	2.0%
Investment properties under development (2)	231.8	220.7	-4.8%	193.5	14.1%
Other investment	91.4	95.3	4.3%	85.6	11.3%
Deferred Tax Assets	94.7	146.8	55.1%	141.0	4.1%
Others	41.6	60.5	45.4%	74.6	-18.9%
Current Assets	1,755.5	1,344.6	-23.4%	1,415.0	-5.0%
Stocks	406.8	494.6	21.6%	471.5	4.9%
Trade Debtors	178.4	224.0	25.5%	229.1	-2.2%
Liquidity (3)	727.1	184.5	-74.6%	346.5	-46.7%
Others	443.2	441.5	-0.4%	367.9	20.0%
Total equity	1,503.5	1,670.0	11.1%	1,618.0	3.2%
Group Share	1,067.1	1,167.6	9.4%	1,169.7	-0.2%
Minority Interests	436.4	502.4	15.1%	448.4	12.0%
Total Liabilities	4,607.0	5,497.2	19.3%	5,423.2	1.4%
Non Current Liabilities	2,658.7	3,692.9	38.9%	3,597.8	2.6%
Bank Loans	995.6	1,358.3	36.4%	1,059.7	28.2%
Other Loans (4)	1,260.1	1,668.9	32.4%	1,769.4	-5.7%
Deferred Tax Liabilities	304.7	354.6	16.4%	345.1	2.8%
Provisions	47.1	74.4	58.0%	110.6	-32.7%
Others	51.2	236.8	-	313.0	-24.4%
Current Liabilities	1,948.3	1,804.3	-7.4%	1,825.4	-1.2%
Bank Loans	460.5	189.5	-58.8%	129.2	46.7%
Other Loans (4)	281.2	106.2	-62.2%	9.1	-
Trade Creditors	653.5	852.2	30.4%	990.0	-13.9%
Others	553.2	656.4	18.7%	697.1	-5.8%

(1) Value of shopping centres in operation owned by Sonae Sierra; (2) Properties under development owned by Sonae Sierra; (3) Liquidity includes cash & equivalents and current investments; (4) Other loans include bonds, leasing, derivatives and shareholder loans; (5) 2007 figures restated for the fair value allocation on the Carrefour acquisition;(R) Restated to exclude Sonae Capital contribution in 1H07.

Gross tangible and intangible assets totalled 4,411 million euros at the end of 1H08, compared to 4,173 million euros at end 2007 and cumulative depreciation and amortization totalled 1.707 million euros, compared to 1,594 million euros at end 2007. Liquidity decreased by 162 million euros to 184.5 million euros in 1H08, compared to end 2007, including the acquisition of approximately 10.3 million Sonaecom shares during the half-year period, the use of cash applications to repay debt at Sonaecom, and the 102 million euros impact from the obligations regarding the mark-to-market of the Cash Settled Equity Swap, covering a total of 132.8 million Sonae shares. Total investment properties were up 2% over that at the end of 2007, with the opening of one new asset at Sonae Sierra and the valuation gains in Brazil offsetting the 69.2 million euros reduction in the value of the shopping centres owned in Europe. Trade creditors reached 852.2 million euros, a reduction of 136.6 million euros compared to end 2007, mainly driven by the Retail business, as a result of payments to suppliers after the strong Christmas season.

Capex

Capex increased by 48.1 million euros to 401.2 million euros in 1H08, compared to 1H07(R), representing 16.5% of turnover.

Million euros
CAPEX	1H07(R)	1H08	y.o.y
Total CAPEX (1)	353.1	401.2	13.6%
Retail	79.7	132.8	66.6%
Shopping Centres (2)	194.4	81.3	-58.2%
Telecommunications	78.7	162.1	106.0%
Holding & others	0.3	25.0	-
CAPEX as a % of turnover	17.9%	16.5%	1.4pp
EBITDA minus CAPEX	-31.6	-178.9	-
(1) Capex includes gross investments in tangible, intangible, investment properties and investments in acquisitions; (2) shopping centres proportionally consolidated; (R) Restated

to exclude Sonae Capital contribution in 1H07. The contribution to consolidated Capex from the Telecommunications business amounted to

162.1 million euros, compared to 78.7 million euros in 1H07(R), mainly comprising investments at the Mobile division, totalling 146.4 million euros (+105.8 million euros increase in 1H08 over 1H07), of which 89 million euros related to the recognition, as a license cost, of the net present

value of obligations assumed under the "e-Initiatives" programme, a governmental initiative which offers laptops and discounts in broadband access to school teachers and students. The remainder Capex was geared to accelerate the extension of coverage and capacity of its 2G/3G network to improve quality of service and consolidate the leading position in the mobile broadband market. Noteworthy, the Telecommunications business also started to roll-out its announced fibre optics Next Generation Network. Retail Capex, responsible for 33.1% of the consolidated investment as at 1H08, was directed towards the Company's strong expansion plan, with the opening of 31 new stores during 1H08 with a total of 15 thousand m2, the preparation work for future openings, the refurbishment of the older store network, the development of new business concepts and the upgrading of the logistic warehouse units. Shopping Centres contribution to consolidated Capex amounted to 81.3 million euros, mainly comprising investments in development activities, now with a pipeline of 15 projects under development and an estimated investment of 1,864 million euros, scheduled to open up to the end of 2011. The 1H07(R) investment figure includes 97 million euros of acquisitions (Munster Arkaden, in Germany and River Plaza Mall, in Romania). Capex at the Holding reached 25 million euros when compared to 0.3 million euros at 1H07(R), mainly comprising the acquisition of approximately 10.3 million Sonaecom shares in the semester.

Capital structure

1H08	y.o.y	2007	∆
	10.9%	2,967.4	12.0%
	38.2%	2,621.0	19.7%
	133.7%	1,072.4	27.7%
	23.3%	839.5	6.0%
	3.4%	307.4	18.8%
	-15.8%	401.7	27.7%
	1.5x	3.7 x	1.6x
	-1.9x	4.9 x	-1.3x
	0pp	64.7%	1.8pp
	1H07(R) 2,997.4 2,270.3 586.2 721.9 353.3 608.9 3.8 x 5.5 x 66.6%	3,322.9 3,138.4 1,369.9 890.2 365.2 513.0 5.3 x 3.6 x 66.6%

(1) Gross debt = non current borrowings + current borrowings; (2) Net debt = gross debt - liquidity; (3) Shopping Centres are proportionally consolidated; (4) Interest cover; (5) Net Gearing; (R) Restated to exclude Sonae Capital contribution in 1H07.

Consolidated net debt at the end of 1H08 stood at 3,138.4 million euros, an increase of 517.4 million euros over year end 2007, reflecting: (i) a 296.5 million euros increase in the contribution to consolidated net debt from the Retail business, in 1H08, reflecting the strong programme of organic growth and store refurbishment and the seasonal change in working capital; (ii) a 111.3 million euros higher contribution to net debt from the Holding, as a result of the payments of the obligations related to the cash settled equity swap contracted and the acquisition of Sonaecom shares; (iii) a 57.8 million euros increase in the contribution from the Telecommunications business, mainly reflecting its investment for growth and the development of its technical infrastructure; and (iv) a 50.7 million euros increase in the contribution to consolidated net debt from the Shopping Centre business, related with financing needs for the on-going development pipeline. At end of 1H08, the weighted average maturity of Sonae Group debt stood at approximately 5.3 years. The sum of cash and undrawn committed credit facilities stood at 1,200 million euros.

At the end of 1H08, net debt to EBITDA (last 12 months) reached 5.3x, reflecting the above mentioned increase in net debt registered in the semester and the lower level of EBITDA in the preceding 12 months. In 1H08, 12 months' trailing interest cover deteriorated to 3.6x, when compared to 4.9x at year end 2007, due to higher interest costs in the semester, as a result of increased market interest index rates and higher average net debt levels. The ratio of consolidated gross debt to total funds remained stable at 66.6%, only 1.8pp above that in year end 2007, reflecting the increase in gross debt that has been partially offset by an increase in total equity for the period. It should be noted that EBITDA (last 12 months) only includes one semester contribution from the retail operation acquired, while net debt for the period reflects the full payment of the acquisition price on 31 December 2007.

The majority of the gross debt as at end 1H08 attributable to the Shopping Centres business is fully and exclusively guaranteed by the assets of each project. Excluding Sonae Sierra's contribution to consolidated debt, net debt to EBITDA (last 12 months) reached 4.7x and

interest cover reached 4.0x in 1H08, when compared to 3.8x and 4.5x, respectively, at year end 2007.

3. Business analysis – main highlights

3.1. Retail

During 1H08, Sonae Distribuição accomplished to achieve a solid turnover and like-for-like sales growth, despite the tough economic environment with a decrease of the consumer disposable income, and the competitive pressures in the Portuguese market, with the increased supply in the food retail market1 surpassing the nominal rate of increase in demand² .

OPERATING REVIEW	1H07	1H08	y.o.y
Sales growth (%)	9.9%	25.7%	15.8pp
Food	10.1%	21.7%	11.6pp
Non-Food	13.7%	18.8%	5.1pp
LFL sales growth (%)	5%	2%	-3pp
Food	5%	2%	-4pp
Non-Food	3%	2%	-2pp
Number of stores (EOP)	517	677	30.9%
Food	126	176	39.7%
Non-Food	391	501	28.1%
Sales area ('000 m2)	565	725	28.3%
Food	356	462	29.8%
Non-Food	209	263	25.8%
% Sales area owned (%)	-	74.6%	-
Food	-	86.9%	-
Non-Food	-	53.5%	-
Total employees	26,108	32,293	23.7%

Sales

Food retail registered a solid 21.7% sales growth in 1H08, compared to 1H07, despite greater competitive pressures and a challenging macroeconomic environment, and notwithstanding the significant sales benefit obtained in 1H07 from effects of the launch of the loyalty card. This performance in sales was mainly explained by: (i) the underlying 2% like-for-like growth; (ii) the accelerated expansion plan in progress, with the opening of 22 new food retail stores, totalling 21 thousand m2 of sales area, in the last 12 months; and (iii) the integration of the 12 retail stores acquired, with additional 85 thousand m2 of sales area, although no major refurbishment investments have yet been concluded.

Non-food retail sales increased by 18.8% in 1H08 against 1H07. This increase was primarily the result of: (i) an underlying 2% like-for-like growth, despite the negative like-for-like performance in the 2Q08, reflecting the slowing down of the consumer demand and the consequent postponement of purchases, as well as the impact of the early Easter when compared to 2Q07; (ii) expansion of the store network, with the opening of 97 new non-food retail stores, equal to approximately 42 thousand m2 of additional sales area, in the last 12 months; (iii) integration of the heavy bazaar from the stores acquired; and (iv) increased consumer awareness and improved operational performance of the maturing non-food formats.

Stores network

Sonae Distribuição ended 1H08 with 677 stores and fourteen brands³ , amounting to a total of 725 thousand m2 of sales area, 28.3% above the 565 thousand m2 sales area at end 1H07. Total sales area owned reached 544 thousand m2 at end 1H08, representing approximately 75% of the stores network sales area and responsible for approximately 80% of the 1H08 annualized sales. Noteworthy, and through keeping its strong focus on innovation, the Company extended its activity to two new businesses: a casual footwear brand, Loop, and a bookstore concept, Book.it, that brings together in a single area a book shop, stationery and tobacco. After the reporting period, the Company expanded its sales network by 12 new stores, reaching a total of 43 new stores in 2008, including the opening of an additional Sportzone store in Spain.

¹ Measured in m2 of sales area

² Measured by the trend of sales of the major market operations

³ Modelo Bonjour is classified as Modelo since January 2008

In August 2008, and falling within the planned internationalization process, Sonae Distribuição launched Worten in the Spanish market, with the acquisition of Boulanger's Spanish operation specialized in household appliances and consumer electronics, comprising 9 operating stores.

Million euros
FINANCIAL REVIEW	1H07	1H08	y.o.y
Turnover	1,495.1	1,879.3	25.7%
Food	1,076.2	1,309.4	21.7%
Non-Food	415.4	493.4	18.8%
Others & eliminations (1)	3.6	76.5	-
EBITDA	113.6	126.7	11.5%
EBITDA margin (%) (2 )	7.6%	6.7%	-0.9pp
Food	78.4	94.0	19.9%
Non-Food	19.4	21.3	9.8%
Others & eliminations (1)	15.8	11.2	-28.9%
EBIT	71.2	69.9	-1.8%
Net financial results	-17.6	-31.4	-78.9%
Net income - group share (3)	49.1	39.4	-19.7%
Gross debt	906.0	1,491.0	64.6%
Net debt	586.3	1,379.3	135.3%
Net debt/EBITDA (last 12 months)	2.1 x	4.4 x	2.3x
EBITDA/interest expenses (last 12 months) (4)	13.1 x	6.7 x	-6.5x
Gross Debt/(Gross Debt+Total equity) (5 )	55.3%	64.9%	9.6pp
CAPEX	104.0	107.1	3.0%
EBITDA minus CAPEX	9.6	19.6	103.3%

(1) Includes petrol stations and real estate rents received from galleries; (2) EBITDA margin = EBITDA / Turnover; (3) Net income attributable to Sonae Distribuição shareholders; (4) Interest cover; (5) Net gearing.

Turnover

Turnover increased by a significant 25.7% to 1,879.3 million euros, compared to 1,495.1 million euros in 1H07, mainly due to the positive underlying like-for-like growth achieved on both food and non-food based retail sales, the expanded store network over the last 12 months, driven by the ongoing investment in organic growth and the inclusion of the retail stores acquired in 2007.

In 1H08, Turnover included the revenue generated by the eight Petrol Stations acquired as part of the purchase of a retail company in 2007. On February 2008, Sonae Distribuição announced their operational transfer to GALP, which is still pending Competition authority approval.

EBITDA

EBITDA in 1H08 reached 126.7 million euros, up by 11.5% when compared to 113.6 million euros in 1H07. Two extraordinary impacts affected both 1H08 and 1H07 results: (i) a 9 million euros capital gain in 1H08, related to the sale of a Brazilian site in Florianópolis; and (ii) a 12 million euros capital gain in 1H07, generated by the sale of the real estate assets of the Albufeira and Portimão Shopping galleries in 2007. Excluding the impact of these non-recurrent capital gains, EBITDA rose by 15.9%, from 101.6 million euros in 1H07, to 117.7 million euros in 1H08, reflecting the Company's ongoing focus on containing costs and achieving productivity gains in operations. Food retail EBITDA has increased 19.9% over 1H07 to 94 million euros and Non-food retail reached an EBITDA of 21.3 million euros, up 9.8% over 1H07.

EBITDA generated a margin of 6.7%, 0.9pp down on the 7.6% margin in 1H07, mainly due to: (i) the impact on margin of the Petrol Stations acquired as part of the purchase of a retail company in 2007; (ii) the non-recurrent capital gains impacting EBITDA trends; and (iii) integration costs of the acquired stores mainly related to headcount and stocks optimization. Food retail EBITDA margin reached 7.2% in 1H08, similar to that in 1H07, and non-food retail margin amounted to 4.3%, compared to 4.7% in 1H07, a slight decrease mainly explained by: (i) an extended new store network, opened during the last two years, with a performance still below that expected on a on-going basis; (ii) the macroeconomic environment of lower consumer spending; and (iii) the marketing & sales efforts to promote sales growth.

3.2. Shopping centres

Sonae Sierra was able to optimize the operating performance of its well-located, well-designed and well-managed shopping centres, mitigating the negative economic environment prevailing in the real estate market where the Company operates, reflected in the upwards shift of the capitalization yields in Europe and, consequently, in a reduction of the estimated market value of the property. More importantly, and given the limited scope for further yield compression, the

Company continued to shift focus to developments, with an increased pipeline of projects under development and the sale of 49.7% of the new Sierra Portugal Fund at year end 2007 NAV valuation.

OPERATING REVIEW	1H07	1H08	y.o.y	2007	°
Real estate open market value (million euros) (1)	5,429.9	6,377.0	17.4%	6,153.5	3.6%
Real estate NAV (million euros) (2)	1,595.0	1,728.8	8.4%	1,713.2	0.9%
Sierra Investments	867.0	1,080.7	24.7%	1,114.4	-3.0%
Sierra Brazil	164.0	238.0	45.1%	201.3	18.2%
Others (3)	563.0	410.0	-27.2%	398.0	3.0%
NAV per share (euros)	49.0	53.2	8.5%	52.7	0.9%
Openings & acquisitions (EOP)	3	1	-66.7%	8	-87.5%
Shopping centres owned/co-owned (EOP)	44	48	9.1%	47	2.1%
GLA owned/co-owned (4)	1,730.0	1,883.6	8.9%	1,855.4	1.5%
Occupancy rate of GLA owned (%)	96.5%	96.3%	-0.2pp	95.5%	0.8pp
Projects under development (EOP) (5 )	10	15	50.0%	12	25.0%
Projects in planning stage (EOP) (6 )	13	15	15.4%	15	0.0%
GLA under development (thousand m2) (4)	508.0	684.9	34.8%	473.8	44.6%
Shopping centres managed (EOP)	57	61	7.0%	63	-3.2%
GLA under management (thousand m2) (4)	2,027.0	2,064.9	1.9%	2,183.1	-5.4%
Total employees	756	831	9.9%	789	5.3%

(1) Open market value = fair value of real estate in operation (100%), provided by an independent entity; equivalent to assets under management; (2) Net asset value = Open market value minus net debt minus minorities plus deferred tax liabilities; (3) Others = Projects under development in Europe + Cash; (4) Gross Lettable area in operating centres; (5) Projects in planning and construction; (6) Projects committed but not fully licensed.

New projects, openings, acquisitions and disposals

As at the end of 1H08, Sonae Sierra owned or co-owned 48 shopping centres, compared to 44 shopping centres by end 1H07, with more than 1.88 million GLA, compared to 1.73 million GLA in 1H07. Average occupancy rate remained stable, reaching 96.3% by end 1H08 versus 96.5% as of end 1H07, despite the difficult economic environment reflected in a deterioration of European consumer's confidence and disposable income. As to shopping centres managed, Sonae Sierra continued to manage properties beyond those that are owned, servicing 61 units by end of 1H08, compared to 57 in 1H07.

The Company ended the half-year with 30 new projects in the pipeline, of which 15 under development and scheduled to open until end 2011, and the remaining still uncommitted. It is noticeable the focus on the development activity area, with seven more projects in pipeline when compared to 1H07 and five new projects committed and fully licensed against the end of 2007. During the 1H08, Sonae Sierra announced the following additional projects: (i) the development of a shopping centre in Brazil, in the city of Londrina, due to be inaugurated in March 2010; (ii) the development of Parklake Plaza, one of Europe's biggest shopping centres located in Bucharest, Romania, scheduled to open in April 2011; and (iii) the development of a shopping centre in Brazil, in the city of Uberlândia, scheduled to be opened in 2010. Total projects under development amounted to an estimated investment of 1,864 million euros (Gross Lettable Area of 685 thousand m2), of which 1,173 million euros from Sonae Sierra, with the following breakdown of investment: 47.4% Romania, 11.2% Italy, 10.7% Germany, 8.9% Spain, 8.8% Brazil, 7.8% Greece and 5.3% Portugal. In the period, Sonae Sierra successfully opened Freccia Rossa, its first shopping centre development in Italy, located in the city of Brescia.

Also worth of note was the launch, in March 2008, of the Sierra Portugal Fund, a fund with a 300 million euros equity, seeded with eight shopping centres and a pipeline of three projects. By end of 1H08, the Company had placed approximately 49.7% of the Fund´s equity with international institutional investors, namely a Finnish pension fund, a Finnish mutual pension insurance company, two real estate funds managed by Schroeder Investment Management and one client of Aberdeen Property Investors. Importantly, after 30 June 2008, Sonae Sierra concluded an additional placement of the Fund, reducing its shareholding position to 42%. Additional closings are planned for 2008, through which Sonae Sierra intends to further reduce its holding.

Investment Property portfolio value

At end 1H08, the open market value of 100% of Sonae Sierra's real estate properties, as provided by an independent entity, Cushman & Wakefield, increased by 223.5 million euros to 6,377 million euros when compared to the latest valuation of 6,154 million euros as at end 2007. This increase mainly reflects three important factors: (i) valuation gains in Brazil, a market that has not been affected by the European property crisis and where average yields have

compressed by 48bp when compared to end 2007; Brazil properties contributed to an increase of the property value by 110.2 million euros; (ii) recognition of a new asset valued at 180.5 million euros, with the opening of Freccia Rossa; and (iii) operational optimization of the shopping centres, reflected in a positive impact of 144 million euros, driven by the increase of estimated rents, key money, other net income and maintenance and capital expenditures. These factors mitigated 211 million euros of losses from yield expansion on most of the European countries where Sonae Sierra operates, with the exception of Germany (maintenance of yields). When compared to end 2007, average yield in Portugal increased by 16bp, in Spain increased by 44bp and in Romania by 30bp.

The NAV at end of 1H08 of the properties attributable to Sonae Sierra was 1,729 million euros, corresponding to a value per share of 53.17 euros. To emphasize that, at end 1H08, Sonae Sierra decided to assess its NAV on the basis of the guidelines published by INREV⁴ , an association of which the Company is a member. On a same methodology basis, compared to year end 2007, NAV decreased by 2.8%, from 1,713 million euros to 1,665 million euros.

Million euros
FINANCIAL REVIEW	1H07	1H08	y.o.y
Turnover	128.9	156.8	21.7%
Services Business	26.0	32.2	24.1%
Asset management	9.7	12.7	31.0%
Developments	5.1	6.4	25.5%
Property management	11.2	13.2	17.6%
Investments	96.8	121.0	24.9%
Others & eliminations	6.1	3.6	-40.9%
EBITDA excl. value created on invest. Prop.	70.8	89.7	26.7%
EBITDA margin (%) (1 )	54.9%	57.2%	2.3pp
Services EBITDA margin (%)	64.5%	-	-
Services Business	16.8	-18.4	-
Asset management	4.3	6.3	45.4%
Developments (2)	10.0	-27.5	-
Property management	2.4	2.8	16.0%
Investments	78.3	94.0	20.0%
Others & eliminations	-24.3	14.1
EBIT	69.9	88.6	26.9%
Net financial results	-15.6	-44.2	-182.5%
Gains realized on investments (3)	0.1	13.6	-
Value created on investment properties (4)	182.6	-47.0	-
Net income - group share (5)	100.5	17.5	-82.6%
Gross debt	1,597.2	1,868.4	17.0%
Net debt	1,341.2	1,776.9	32.5%
Loan to Value (6 )	41.8%	46.1%	4.3pp
Net debt/EBITDA (last 12 months)	9.2 x	14.6 x	5.5x
EBITDA/interest expenses (last 12 months) (7)	2.4 x	1.7 x	-0.7x
Debt/(Debt+Total equity) (8)	48.8%	49.4%	0.6pp
CAPEX (9 )	126.2	132.9	5.3%

(1) EBITDA margin = EBITDA / Turnover; (2) EBITDA Developments = EBITDA plus value created in projects; (3) Capital gains (losses) with shopping centres disposals; (4) Increase in the valuation of the shopping centres; (5) Net income attributable to Sonae Sierra shareholders; (6) Net debt / Investment properties; (7) EBITDA/interest expenses; (8) Net gearing; (9) CAPEX does not include investments in acquisitions.

Turnover

Turnover increased by 21.7% to 156.8 million euros, compared to 128.9 million euros in 1H07. Services business income amounted to 32.2 million euros, up 24.1% when compared to 26 million euros in 1H07, with main contributions coming from: (i) 31.0% higher Asset Management income, mainly driven by the extension of the portfolio of shopping centres under management and the increase in valuation for the same portfolio of centres when compared to 1H07; (ii) 25.5% higher operating income at Developments, with the increase of the number and dimension of the projects in the pipeline explaining the higher project development fees charged; and (iii) 17.6% growth in Property Management income, explained by the higher number of properties under management (Alexa, 8ª Avenida, River Plaza and El Rosal) and a higher letting services income, up 23% compared to 1H07. Sierra Investments turnover increased by 17.6% to 121 million euros, mainly explained by a 25.8% increase in rental income to 103.7 million euros, due to a combination of acquisitions (acquisition of Munster and River Plaza), increases in ownership share of two shopping centres in Portugal (50% of Arrábida Shopping and Gaia Shopping) and organic growth of the existing portfolio (opening of El Rosal); on a like-for-like basis, fixed rental income increased 4.5% compared to 1H07.

⁴ European Association for investors in Non-listed Real Estate vehicles

EBITDA

Sonae Sierra's EBITDA, excluding value created on investment properties, reached 89.7 million euros in 1H08, an increase of 26.7% over 1H07. EBITDA of the various Services was negative 18.4 million euros in 1H08, mainly explained by the 27.5 million euros EBITDA loss at the Development division, compared with an EBITDA totalling 10 million euros in 1H07. This performance is mainly explained by the reduction of the estimates of value created on several projects under development until opening and consequent cancellation of margins accrued in previous quarters. Notwithstanding this performance, and partially offsetting its impact, the Asset Management Division generated an EBITDA of 6.3 million euros, 45% above 1H07, reflecting the scale benefits from Sonae Sierra's portfolio expansion and productivity gains, and the Property Management division reached an EBITDA of 2.8 million euros, 16% above 1H07, as a result of more dynamic letting activity and the larger portfolio under management. The Investments EBITDA was 94 million euros, up 15.7 million euros compared to 1H07, driven mainly by the acquisition of new shopping centres and the organic growth of the portfolio of assets owned.

Gains realized on investments

The income from gains realized on investment properties of 13.6 million, is mainly related with the 49.7% placement of the Sierra Portugal Fund, net of set-up costs, reflecting the deferred tax liabilities related to valuation gains on investment properties, that had been accounted for in the balance sheet under the IFRS rules and not considered for pricing purposes.

Value created on Investment properties

Value created on investment properties reached a negative 47 million euros in 1H08, compared to positive 182.6 million euros in 1H07, explained by the general yield increase in Europe of the shopping centres in the portfolio (-138.3 million euros), as compared to a yield compression trend still prevailing in 1H07. This upward tendency was partially offset by a yield decrease in Brazil (+11.7 million euros), an improved performance of the Shopping centres owned and managed by Sonae Sierra (+74.9 million euros) and the gain from the opening of the Freccia Rossa centre during 1H08 (+8.7 million euros).

3.3. Telecommunications

During 1H08, Sonaecom was able to deliver a high level of growth in customers and customer revenues, despite the increased level of competition in the Portuguese telecoms market. This growth was achieved on the back of a number of important commercial initiatives, with the continuous launch of new products and services.

OPERATING REVIEW	1H07	1H08	y.o.y
Mobile
Customers (EOP) ('000)	2,673.9	2,982.1	11.5%
ARPU (euros) (1)	17.8	16.9	-5.0%
Wireline
Total accesses (EOP) (2)	411,177	741,098	80.2%
Direct accesses (EOP)	336,779	522,540	55.2%
Average revenue per access - retail (3)	23.5	20.8	-11.1%
Media
Average paid circulation (4)	42,657	42,726	0.2%
Market share of advertising (%) (5)	14.1%	13.3%	-0.8pp
SSI
IT service revenues / employee ('000 euros) (6 )	55.1	57.9	5.1%
Total employees	1,851	1,921	3.8%

(1) Average revenues per user; (2) Accesses according to "revenue generator unit" criteria; (3) excluding Mass Calling services' revenues; (4) Estimated value, updated in the following quarter; (5) 2Q08= May YTD; (6) Excluding employees dedicated to equipment sales.

Customer base

Sonaecom's mobile customer base increased by 11.5% to 2,982 thousand customers at the end of 1H08, compared to 2,674 thousand customers at end of 1H07, with net additions in excess of 89 thousand in the half-year, up by 22.9% compared to 1H07, reflecting investments to support the brand, particularly in the residential segment; to improve distribution capacity; and the continuous development of Sonaecom's fixed-mobile convergent product 'Optimus Home' and wireless broadband service 'Kanguru'. The launch of "TAG" in the semester, an innovative offer aimed at the youth market, also contributed to the strong growth of the customer base.

Mobile customers generated an ARPU of 16.9 euros in 1H08, down from an ARPU of 17.8 euros in 1H07, of which 13.1 euros related to customer monthly bill and 3.8 euros related to operator revenues, which compares to 13.6 euros and 4.2 euros respectively in 1H07. This lower ARPU is mainly explained by: (i) the 11% decrease in operator revenues ARPU, due to reductions in roaming tariffs; (ii) the decrease of 3.2% in customer monthly bill, due to the lower Average Revenue per Minute, explained by the higher price pressures on voice tariffs, mainly in the SME and Corporate segments and; (iii) to the increased weight of Sonaecom's fixed-mobile convergent product within the customer base, which was not fully offset by the higher average minutes of use per customer in the period. By end of 1H08, data revenues represented 20.9% of service revenues, 4.4pp higher than in 1H07, a demonstration of the Company's leading position in wireless broadband and its success to push for a material growth of data usage through the promotion of retail sales of its mobile broadband product "Kanguru".

Sonaecom's wireline accesses reached 741 thousand at end 1H08, an increase of 80.2% compared to 1H07 and 10.1% on a like-for-like basis, excluding the impact of ONI's residential and SoHo customer base and Tele2 Portugal customers. Total direct accesses have grown to represent 70.5% of Sonaecom's wireline customer base in 1H08, compared to 81.9% in 1H07, reflecting the higher indirect customer base resulting mostly from the acquisition of Tele2 during 3Q07. Direct net additions in 1H08 were, approximately, 12 thousand, a lower level when compared to 1H07, as a result of: (i) the increased competitive pressures in the market, pressing for higher churn; (ii) the problems faced in porting numbers from the incumbent operator, leading to a significant increase in the average number of days to activate an ULL customer; (iii) the lower rate of expansion of the ULL addressable market, with the opening of only 5 new Central Offices for ULL ADSL2+ services in the semester; and (iv) the growing competition from mobile broadband services.

Million euros
FINANCIAL REVIEW	1H07	1H08	y.o.y
Turnover	413.4	475.6	15.0%
Mobile	293.5	303.1	3.3%
Wireline	110.7	147.6	33.3%
Media	16.7	17.2	3.5%
SSI	32.8	54.5	66.2%
Others & eliminations	-40.2	-46.8	-16.4%
Other revenues	2.1	4.3	109.7%
EBITDA (1)	73.2	68.7	-6.1%
EBITDA margin (%) (2 )	17.7%	14.4%	-3.3pp
Mobile	73.7	62.1	-15.7%
Wireline	0.8	4.0	-
Media	-1.9	-1.5	20.4%
SSI	2.7	3.6	36.1%
Others & eliminations	-2.0	0.4	-
EBIT	6.1	-9.1	-
Net financial results	-8.2	-7.9	4.2%
Net income - group share (3)	-4.7	-12.2	-159.5%
Gross debt	482.6	374.3	-22.4%
Net debt	284.2	367.4	29.3%
Net debt/EBITDA (last 12 months)	1.9 x	2.3 x	0.5x
EBITDA/interest expenses (last 12 months) (4)	5.7 x	8.0 x	2.3x
Gross Debt/(Gross Debt+Total equity) (5 )	35.1%	28.9%	-6.2pp
CAPEX	69.9	161.6	131.3%
Operating CAPEX (6)	56.3	67.7	20.4%
EBITDA minus CAPEX	3.3	-92.9	-
Free Cash Flow	75.0	-57.8	-

(1) EBITDA includes provisions and impairment losses; (2) EBITDA margin = EBITDA / Turnover; (3) Net income after minority interests; (4) Interest cover; (5) Net gearing; (6) Operating CAPEX excludes financial investments, provisions for sites dismantling and other non operational investments.

Turnover

Sonaecom turnover increased by 15% in 1H08 to 475.6 million euros compared to 1H07, notwithstanding the significant competitive pressures in the Portuguese telecoms market, with aggressive promotions being launched and new price points introduced in the market by all players. The main contributions to this performance came from: (i) 33.2% higher service revenues from the Wireline business (4.8% on a like-for-like basis), mainly due to the significant increase in customer revenues, up by 70.6% (13.2% on a like-for-like basis), driven by the growth in direct access revenues, up 51.0% on 1H07, and indirect access revenues, up by 151.1% to 27.4 million euros; the expected trend of reduction in indirect access customers has determined q.o.q. reductions in the corresponding revenue line; (ii) 3.9% increase in Mobile's

service revenues, with the 5.9% growth of customer revenues more than offsetting the negative impact of lower roaming tariffs, and notwithstanding the increased competitiveness in the market reflected in a 5.0% decrease of the average revenue per minute; (iii) 44.1% higher service revenues from SSI, driven by the good performance of all its businesses; and (iv) the 3.5% growth in Media's service revenues, driven by higher advertising revenues.

Excluding the contributions from the businesses acquired during 20075 , Sonaecom's turnover would have grown by 6.5%, compared to 1H07, reflecting the increase in service revenues by 5.2%, a material achievement in the current competitive market environment.

EBITDA

EBITDA reached 68.7 million euros in 1H08, generating a margin of 14.4%, compared to an EBITDA of 73.2 million euros and a margin of 17.7% in 1H07. This performance was mainly driven by strong operational results at the Wireline and SSI businesses, which were fully off-set by the increased marketing & sales costs at the Mobile division, the increased level of competition and the integration costs related with acquisitions. The Mobile business generated EBITDA of 62.1 million euros, compared to 73.7 million euros in 1H07, mainly driven by increase marketing & sales costs in the half-year and increased handset subsidies, combined with the negative impact from lower roaming tariffs. The Wireline business generated an EBITDA of 4 million euros compared to 0.8 million euros in 1H07, reflecting the scale benefits of an higher direct access customer base, achieved via organic growth, which is generating an increasingly positive contribution to profitability, and the positive contributions from the businesses acquired during 2007. EBITDA at SSI increased from 2.7 million in 1H07 to 3.7 million in 1H08, driven by higher service revenues in all its businesses and by a one-off effect related to the recognition of a 1.4 million euros gain in relation to the final closure of Tecnológica's acquisition process. Público's EBITDA was negative 1.5 million euros, a 20.4% improvement when compared to 1H07, driven by a better performance in associated product sales, up by 11.9% over 1H07, and by an increase in advertising revenues, up by 2.5% over 1H07.

3.4. Sonae SGPS individual financial results

The activity of Sonae, SGPS, SA, as a stand alone company, is focused on the management of its holdings in affiliated companies.

Total turnover increased by 36.5% to 1 million euros, compared to 1H07, and EBITDA amounted to negative 2.9 million euros, compared to negative 3.7 million euros in 1H07. Net profit for the 1H08 amounted to 114.9 million euros, which was favourably impacted by dividends received from its affiliated companies Sonae Distribuição and Sonae Sierra.

4. Main corporate developments

Sonae

• Following the completion of the demerger of Sonae Capital from Sonae, with the attribution of 0.125 of a share of the new company for each Sonae share, a rights trading period was available to Sonae shareholders from 9 January 2008 to 15 January 2008, inclusive, and over-the-counter continued up to 18 January 2008, inclusive. The listing on Euronext Lisbon of the new shares took place on 28 January 2008.
• Sonae acquired, through a wholly owned subsidiary, additional 10,4 million Sonaecom shares, purchased at an average price of 2.35 euros per share. With this acquisition, the Company ended the 1H08 with a shareholding position of 53.3%.

⁵ In 2007, Sonaecom acquired ONI residential and SOHO customers, Tele2 Portugal, Cape Technologies, Praesidium and Tecnológica.

Retail

• Sonae Distribuição announced that it has reached an agreement with Galp Energia for the operation of eight petrol stations located next to Continente hypermarkets. These filling stations were acquired by Sonae Distribuição as part of the purchase of the retail operation concluded at end December 2007, and will be integrated into the programme of joint promotional actions, allowing customers of both companies to take advantage of discounts on purchases in Galp stations and in Continente and Modelo hypermarkets.
• Sonae Distribuição successfully opened its first SportZone store in Spain, in the new Isla Azul shopping centre at Carabanchel, Madrid, with a space area of 2 thousand m2 and 55 employees. After the reporting period, a second SportZone store was opened in Ferrol. These openings fall within the Company's goal of internationalizing its sportswear chain. Two more Sportzone stores will be opened in Spain before the end of 2008 and between 20 and 25 stores until 2010. The estimated investment is approximately 8 million euros in 2008.

The following event, which took place after 30 June 2008 but before the approval of the half-year accounts by the Board, should be noted:

• Sonae Distribuição signed with Auchan a sale agreement of the Modelo shopping centre in Eiras and in Lagoa, and of a property located in Condeixa for which the development of a Modelo store, a Worten store and a Modalfa store had already been granted. This operation was made in respect to the commitments made by the Company following the acquisition of Carrefour Portugal, whereby a number of assets in the Coimbra and Portimão Metropolitan areas had to be sold. The assets subject to these transactions were valued at 21.7 million euros.
• Sonae Distribuição and RAR formalized an agreement to merge their travel operations, Geotur and Star, creating a new Company, with a 50% stake for each Group and a joint management team. The new company will have an aggregated turnover of approximately 230 million euros and a retail network of 75 agencies covering the Portuguese territory.
• Sonae Distribuição announced the acquisition of Boulanger's Spanish stores, specializing in consumer electronics, for an Enterprise Value of 25 million euros. This operation comprises the acquisition of the following: (i) nine stores in operation, in the Spanish main cities, with a total of 22 thousand m2 of sales area and a turnover above 100 million euros; (ii) a logistics warehouse; (iii) three licensed projects; and (iv) three real estate assets (from three units in operation) with a total of 12 thousand m2 of GLA.

Shopping centres

• Sonae Sierra announced the development of its 11th shopping centre in Brazil, in Londrina, through a partnership with a local associate company, Marco Zero. The project is due to be inaugurated in March 2010 with an estimated investment of approximately 135 million reais (53 million euros).
• Sonae Sierra launched its second shopping centre investment fund the Sierra Portugal Fund (SPF) – with a total equity of 300 million euros. Three reference investors have joined Sonae Sierra in the initial closing of the fund with combined commitments of 120 million euros. Further closings are planned later in 2008. The SPF is seeded with eight Portuguese shopping centres, representing a total market value of over 425 million euros and also benefits from a pipeline of three projects currently being developed in Portugal. Their market value, after completion, is estimated to be 235 million.
• Sonae Sierra concluded a closing of the Sierra Portugal Fund (SPF) of 9.7% at year end 2007 NAV, decreasing its interest in the SPF to approximately 50.3%.
• Sonae Sierra and Caelum Development, a specialist retail developer in Eastern Europe, have established a 50:50 Joint Venture for the development of Parklake Plaza, one of Europe's

biggest shopping centres, located in Bucharest, Romania, with an estimated total gross investment of 591 million euros, which is scheduled to open in April 2011.

• Sonae Sierra inaugurated "Freccia Rossa" shopping and leisure centre in Brescia, Italy, a 144 million euros investment with 119 shops on 29,7 thousand m2 GLA.
• Sonae Sierra through its subsidiary Sonae Sierra Brasil, announced the development of its 12th shopping centre in Brazil, in the city of Uberlândia. This project represents an investment of approximately 43.5 million euros and is scheduled to be opened in 2010

The following events, which took place after 30 June 2008 but before the approval of the half-year accounts by the Board, should be noted:

• Sonae Sierra announced the development of a new shopping centre in Leiria, scheduled to be opened in the of 2010, with a Gross Lettable Area of 43,2 thousand m2 and an estimated investment of 75 million euros.
• Sonae Sierra completed a 5 year bond issue, by private placement, of 75 million euros. The bonds were unsecured and were arranged by Caixa - Banco de Investimento. The proceeds of the issue are to be used to fund Sonae Sierra's national and international plans.
• Sonae Sierra concluded an additional closing of the Sierra Portugal Fund (SPF) of 8.3% at year end 2007 NAV, decreasing its interest in the SPF to approximately 42%.
• Sonae Sierra announced a new development in Brazil, in the city of Goiania, due to be opened in 2011, with a Gross Lettable Area of 78,5 thousand m2 and an estimated investment of 123 million euros.

Telecommunications

• Sonaecom announced its 3-year investment plan totalling 240 million euros for the deployment of fibre, which will allow coverage of over 1 million homes and approximately 25% of the Portuguese population. As part of this plan, Sonaecom proposed to give access to its fibre network to all interested national operators, aligning with regulatory recommendations and best practice in Europe.
• Anacom, the Portuguese telecoms regulator, issued a final decision in relation to Mobile Termination Rates, determining the maximum tariffs applicable from 15 July 2008. The decision envisages the introduction of asymmetric prices (20%) in mobile traffic, in favour of Optimus until 1 October 2009, date upon which prices should converge to 0.065 euros per minute.

5. Outlook

Sonae is confident of its strategy to face current challenges and on fulfilling its commitment to achieve profitable growth, despite the current economic environment and the clear slowdown of consumer demand. In the current context, guidance disclosed for 2008, although more difficult to achieve, continues to be valid. During 2H08, Group companies will continue to seek for non-organic growth opportunities arising from the current market conditions and to focus on executing on-going initiatives to deliver organic growth and efficiency gains.

Our Retail business will continue to target high organic growth rates, as a means of consolidating its leadership in the Portuguese market. Total sales area will increase by approximately 60 thousand m2 by year end 2008, including the opening of 3 new Hypermarkets Continente from the 12 retail projects acquired in 2007. Productivity gains from the integration of the 12 hypermarkets acquired in 2007 will start impacting positively margin and new non-food format openings in available space at these stores will contribute to sales performance increase. Sonae Distribuição will also continue with the internationalization plan for non-food formats, by

increasing its presence in Spain, as a result of opening additional Sportzone and Worten stores, as well as looking for expansion opportunities allowing entry into other geographical areas.

Our Shopping Centres business will continue to focus on the operational optimization of the centres and on increasing the scale of the development activities. The Company will be focusing on increasing its pipeline of projects under development, as, given that yields are at historically low levels in Europe, the scope for further valuation gains is limited.

Our Telecommunications business will remain focused on organic growth by innovating and promoting mobile broadband and direct broadband services. The Company will accelerate the extension of coverage and capacity of its mobile and wireline networks and will launch its 3-play offer supported on fibre network on a wider scale.

6. Corporate Governance

A detailed annual Corporate Governance Report is included in Sonae's Full Year 2007 Management Report and Accounts available on its website (www.sonae.pt). Sonae's website also has a specific section dedicated to corporate governance.

Highlighted below are the main developments that occurred during 1H08 in relation to corporate governance issues.

Amendment to the Articles of Association

At the Shareholders' Annual General Meeting held on 24 April 2008, it was resolved to change the company's book-entry bearer shares into book-entry registered shares and, as a consequence thereof, the Company's Articles of Association were amended accordingly.

Board of Directors

Luiz Filipe Lampreia, a member of the Sonae Board, resigned as a Director of the Company, effective from 30 April 2008.

Maia, 26 August 2008

-------------------- Belmiro Mendes de Azevedo President of the Board of Directors

-------- Álvaro Cuervo Garcia Member of the Board of Directors

-------- Michel Marie Bon Member of the Board of Directors

-------- José Neves Adelino Member of the Board of Directors

---------- Duarte Paulo Teixeira de Azevedo President of the Executive Committee

---------- Álvaro Carmona e Costa Portela Member of the Executive Committee

Ângelo Gabriel Ribeirinho dos Santos Paupério Member of the Executive Committee

Nuno Manuel Moniz Trigoso Jordão Member of the Executive Committee

APPENDIX

Statement under the terms of the Article 246, paragraph 1, c) of the Securities code

The signatories individually declare that, to their knowledge, the Management Report, the Consolidated and Individual Financial Statements and other accounting documents required by law or regulation were prepared in accordance with International Financial Reporting Standards, giving a truthful (fairly) and appropriate image, in all material respects, of the assets and liabilities, financial position and the consolidated and individual results of the issuer and that the Management Report faithfully describes the business evolution and position of the issuer and of the companies included in the consolidation perimeter and contains a description of the major risks and uncertainties that they face.

Maia, 26 August 2008

-------------------- Belmiro Mendes de Azevedo President of the Board of Directors

-------- Álvaro Cuervo Garcia Member of the Board of Directors

-------- Michel Marie Bon Member of the Board of Directors

-------- José Neves Adelino Member of the Board of Directors

---------- Duarte Paulo Teixeira de Azevedo President of the Executive Committee

---------- Álvaro Carmona e Costa Portela Member of the Executive Committee

Ângelo Gabriel Ribeirinho dos Santos Paupério Member of the Executive Committee

Nuno Manuel Moniz Trigoso Jordão Member of the Executive Committee

Information of the Board of Directors complying with Article 9, paragraph 1, b) of the CMVM regulation number 04/2004

Disclosure of shares and other securities held by members of the Board of Directors and of transactions during the year involving shares and other securities.

		Purchases		Sales		Balance as of 30.06.2008
	Date	Quantity	Aver. Price €	Quantity	Aver. Price €	Quantity
Belmiro Mendes de Azevedo
Efanor Investimentos, SGPS, SA (1)						49,999,997
Sonae, SGPS, SA						14,901
Sonaecom, SGPS, SA						75,537
Álvaro Carmona e Costa Portela
Sonae, SGPS, SA						125,934
Purchase	11.06.2008	100,000	0.91
Sonaecom, SGPS, SA						5,000
Ângelo Gabriel Ribeirinho dos Santos Paupério
Sonae, SGPS, SA						250,000
Purchase	11.01.2008	245,436	1.30
Sonae.com, SGPS, SA						225,000
Purchase	11.01.2008	59,930	2.89
Purchase	14.01.2008	61,000	3.00
Purchase	15.01.2008	44,000	2.87
Duarte Paulo Teixeira de Azevedo
Efanor Investimentos, SGPS, SA (1)						1
Migracom, SGPS, SA (3)						69,996
Sonae, SGPS, SA						3,293
Michel Marie Bon
Sonae, SGPS, SA						78,113
Purchase	17.01.2008	4,600	1.30
Purchase	28.05.2008	7,250	1.04

						Balance as of
		Purchases			Sales	30.06.2008
	Date	Quantity	Aver. Price €	Quantity	Aver. Price €	Quantity
(1) Efanor Investimentos, SGPS, SA
Sonae, SGPS, SA						658,804,424
Pareuro, BV (2)						2,000,000
Increase in share capital	21.01.2008	1,980,000	151.51
Sonaecom, SGPS, SA						1,000
(2) Pareuro, BV
Sonae, SGPS, SA						400,000,000
(3) Migracom, SGPS, SA
Sonae, SGPS, SA						1,485,000
Purchase	17.01.2008	193,500	1.29
Purchase	18.01.2008	1,500	1.24
Sonaecom, SGPS, SA						387,342
Imparfin, SGPS, SA (4)						150,000
(4) Imparfin, SGPS, SA
Sonae, SGPS, SA						4,105,280
Purchase	03.01.2008	7	1.92

Qualified holdings

Shares held and voting rights of companies owning more than 2% of the share capital of the company.

Nr. of shares	% of Share Capital	% of Voting Rights
658,804,424	32.940%	32.940%
400,000,000	20.000%	20.000%
14,901	0.001%	0.001%
351,296	0.018%	0.018%
1,488,293	0.074%	0.074%
14,320	0.001%	0.001%
1,060,673,234	53.034%	53.034%
132,851,868 365,199 40,071,372 4,751,416 178,039,855	6.643% 0.018% 2.004% 0.238% 8.902%	6.643% 0.018% 2.004% 0.238% 8.902%
49,849,514	2.492%	2.492%
49,849,514	2.492%	2.492%
70,117,704 70,117,704	3.506% 3.506%	3.506% 3.506%

CONSOLIDATED BALANCE SHEET FOR THE PERIODS ENDED AT 30 JUNE 2008 AND 2007 PRO-FORMA

AND FOR THE PERIOD ENDED AT 31 DECEMBER 2007

(Amounts expressed in euro)

In case of discrepancies the Portuguese version prevails.) (Translation of consolidated financial statements originally issued in Portuguese.

ASSETS	Notes	30.June.2008	30.June.2007 Pro- forma (Note 1)	31.December.2007 (1)
NON CURRENT ASSETS:
Tangible and intangible assets	9	2,703,983,531	2,088,664,494	2,579,734,786
Investment properties	10	2,125,884,311	1,824,622,454	2,062,128,926
Goodwill	11	690,117,724	214,032,911	683,136,658
Associated investments	6	70,484,102	52,288,926	73,548,640
Other investments Deferred tax assets	7 and 12 15	24,809,603 146,821,212	39,071,155 94,673,205	12,055,157 141,044,708
Other non current assets	13	60,486,666	41,585,895	74,616,749
Total Non Current Assets		5,822,587,149	4,354,939,040	5,626,265,624
CURRENT ASSETS:
Inventories		494,563,085	406,801,782	471,531,429
Trade debtors and other current assets	14	649,816,729	621,653,409	590,949,208
Investments	12	67,741,707	37,001,223	60,069,924
Cash and cash equivalents	16	116,758,675	690,076,211	286,401,453
Total Current Assets		1,328,880,196	1,755,532,625	1,408,952,014
Assets available for sale	9	15,680,523	-	6,006,580
TOTAL ASSETS		7,167,147,868	6,110,471,665	7,041,224,218
EQUITY AND LIABILITIES
EQUITY:
Share capital	17	2,000,000,000	2,000,000,000	2,000,000,000
Own shares	17	(138,568,275)	(139,441,418)	(138,568,275)
Reserves and retained earnings Profit/(Loss) for the year attributable to the equity holders of sonae		(718,055,013) 24,218,043	(893,817,474) 100,366,258	(975,815,015) 284,044,038
Equity attributable to the equity holders of Sonae		1,167,594,755	1,067,107,366	1,169,660,748
Equity attributable to minority interests	18	502,392,074	436,377,701	448,380,172
TOTAL EQUITY		1,669,986,829	1,503,485,067	1,618,040,920
LIABILITIES: NON CURRENT LIABILITIES:
Loans	19	3,027,137,591	2,255,720,903	2,829,116,990
Other non current liabilities	21	236,782,367	51,183,381	313,023,126
Deferred tax liabilities	15	354,583,609	304,673,861	345,065,194
Provisions	24	74,368,920	47,073,002	110,584,226
Total Non Current Liabilities		3,692,872,487	2,658,651,147	3,597,789,536
CURRENT LIABILITIES:
Loans	19	295,713,227	741,695,215	138,317,111
Trade creditors and other current liabilities	23	1,506,014,841	1,198,377,415	1,684,410,694
Provisions	24	2,560,484	8,262,821	2,665,957
Total Current Liabilities		1,804,288,552	1,948,335,451	1,825,393,762
TOTAL LIABILITIES		5,497,161,039	4,606,986,598	5,423,183,298
TOTAL EQUITY AND LIABILITIES		7,167,147,868	6,110,471,665	7,041,224,218

The accompanying notes are part of these financial statements.

(1) The subsidiary Continente Hipermercados, S.A. (ex-Carrefour) was acquired in the end of 2007 and therefore no fair value allocation was made as at that da During the first half of 2008 a preliminary fair value allocation was made and is now reflected in these financial statements (Note 8).

CONSOLIDATED INCOME STATEMENTS BY NATURE

FOR THE SIX MONTHS ENDED 30 JUNE 2008, 2007 AND 2007 PRO-FORMA

(Amounts expressed in euro)

(Translation of consolidated financial statements originally issued in Portuguese. In case of discrepancies the Portuguese version prevails.)

			30. June.2007
		30.June.2008	Pro-forma	30.June.2007
	Notes		(Note 1)
Operational income
Sales		1,852,621,758	1,464,113,597	1,563,820,185
Services rendered	10	584,041,449	508,078,277	573,361,296
Value created on investment properties		(21,663,667)	102,773,897	102,773,063
Other operational income		209,067,278	154,668,296	211,673,686
Total operational income		2,624,066,818	2,229,634,067	2,451,628,230
Operational expenses
Cost of goods sold and materials consumed		(1,490,041,322)	(1,170,193,011)	(1,229,888,734)
Changes in stocks of finished goods and work in progress		-	-	32,851,703
External supplies and services		(572,404,685)	(455,756,806)	(583,692,834)
Staff costs		(299,712,962)	(249,753,648)	(298,243,615)
Depreciation and amortisation	9	(133,066,982)	(110,370,641)	(115,050,855)
Provisions and impairment losses		(11,540,231)	(12,905,847)	(14,836,476)
Other operational expenses		(39,142,337)	(31,584,470)	(37,507,732)
Total operational expenses		(2,545,908,519)	(2,030,564,423)	(2,246,368,543)
Operational profit/(loss)		78,158,299	199,069,644	205,259,687
Financial expenses		(97,533,955)	(74,419,519)	(78,168,328)
Financial income		19,938,447	24,588,665	22,458,868
Net financial expenses		(77,595,508)	(49,830,854)	(55,709,460)
Share of results of associated undertakings	6	1,302,927	898,779	(173,506)
Investment income		8,226,470	31,122,904	32,367,283
Profit before income tax		10,092,188	181,260,473	181,744,004
Income tax	27	(178,719)	(42,302,871)	(40,534,133)
Consolidated profit for the six months period	28	9,913,469	138,957,602	141,209,871
Attributable to:
Equity holders of Sonae		24,218,043	100,366,258	102,006,054
Minority interests		(14,304,574)	38,591,344	39,203,817
Profit/(loss) per share		-	-
Basic	29	0.012970	0.053768	0.054647
Diluted	29	0.012970	0.053768	0.054647

The accompanying notes are part of these financial statements.

CONSOLIDATED INCOME STATEMENTS BY NATURE

FOR THE THREE MONTHS ENDED 30 JUNE 2008, 2007 AND 2007 PRO-FORMA

(Amounts expressed in euro)

In case of discrepancies the Portuguese version prevails.) (Translation of consolidated financial statements originally issued in Portuguese.

		2nd Quarter ended 30 June 2008 Unaudited	2nd Quarter ended 30 June 2007 Pro-forma (Note 1) Unaudited	2nd Quarter ended 30 June 2007 Unaudited
Operational income
Sales		936,335,922	751,573,837	798,561,478
Services rendered		296,117,963	263,999,033	295,912,135
Value created on investment properties		(21,663,667)	99,904,561	99,903,727
Other operational income		108,731,331	75,829,086	104,690,458
Total operational income		1,319,521,549	1,191,306,517	1,299,067,798
Operational expenses
Cost of goods sold and materials consumed		(739,474,335)	(590,103,164)	(619,039,038)
Changes in stocks of finished goods and work in progress		-	-	22,509,127
External supplies and services		(300,072,798)	(242,066,892)	(308,441,026)
Staff costs		(149,531,853)	(124,555,183)	(149,638,747)
Depreciation and amortisation		(69,411,250)	(52,479,909)	(54,711,051)
Provisions and impairment losses		(7,286,044)	(9,336,974)	(10,968,508)
Other operational expenses		(18,295,943)	(14,175,526)	(17,387,777)
Total operational expenses		(1,284,072,223)	(1,032,717,648)	(1,137,677,020)
Operational profit/(loss)		35,449,326	158,588,869	161,390,778
Financial losses		(47,658,017)	(35,996,734)	(37,881,189)
Financial profits		9,307,332	11,163,258	9,832,116
Net financial expenses		(38,350,685)	(24,833,476)	(28,049,073)
Share of results of associated undertakings		(312,662)	923,950	(470,955)
Investment income		2,271,095	29,095,739	25,610,061
Profit/(Loss) before income tax		(942,926)	163,775,082	158,480,811
Income tax		273,807	(36,193,419)	(33,295,510)
Consolidated profit/(loss) for the period		(669,119)	127,581,663	125,185,301
Attributable to:		-
Equity holders of Sonae		12,077,476	89,553,437	87,333,269
Minority interests		(12,746,595)	38,028,226	37,852,032
Profit/(loss) per share
Basic	29	0.006468	0.047974	0.046785
Diluted	29	0.006468	0.047974	0.046785

The accompanying notes are part of these financial statements.

SONAE, S.G.P.S., S.A.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 30 JUNE 2008 AND 2007

(Amounts expressed in euro)

In case of discrepancies the Portuguese version prevails.) (Translation of consolidated financial statements originally issued in Portuguese.

		Attr ibut able to Equ ity H olde f So rs o nae
				Res d erve s an
		Sha re	Ow n	Ret aine d	Net		Min ority	Tot al
	Not es	Cap ital	Sha res	Ear ning s	Pro fit/(L ) oss	Tot al	Inte rest s	Equ ity
Bala at 1 Jan 200 7 nce as uary		2,0 00,0 00,0 00	(14 2,96 1,43 1)	(80 6,21 9,14 1)	241 ,822 ,233	1,2 92,6 41,6 61	402 ,058 ,314	1,6 94,6 99,9 75
App iatio n of fit o f 20 06: ropr pro
Tra nsfe lega l res d re tain ed e ings r to erve s an arn		-	-	241 ,822 ,233	(24 1,82 2,23 3)	-	-	-
Divi den ds d istri bute d		-	-	(55 ,997 ,443 )	-	(55 ,997 ,443 )	(12 ,650 ,787 )	(68 ,648 ,230 )
Cha s in nge res erve s
In c ertio onv n re serv es		-	-	5,7 71,4 71	-	5,7 71,4 71	250 ,984	6,02 2,45 5
In h edg d fa ir va lue e an rese rves		-	-	25, 334 ,093	-	25, 334 ,093	(68 8,76 2)	24,6 45,3 31
In o ther res erve s		-	3,52 0,01 3	(1,2 60) 10,9	-	2,3 09,0 53	8,74 5,38 9	11, 054 ,442
Con soli date d P rofit /(Lo ss) for t he s ix m onth s
end ed 3 0 Ju ne 2 007		-	-	-	102 ,006 ,054	102 ,006 ,054	39,2 03,8 17	141 ,209 ,871
Bala at 3 0 Ju ne 2 007 nce as		2,0 00,0 00,0 00	(139 ,441 ,418 )	(590 ,499 ,747 )	102 ,006 ,054	1,3 72,0 64,8 89	436 ,918 ,955	1,8 08,9 83,8 44
Bala at 1 Jan 200 8 (1 ) nce as uary		2,0 00,0 00,0 00	(13 8,56 8,27 5)	(97 5,81 5,01 5)	284 ,044 ,038	1,16 9,66 0,74 8	448 ,380 ,172	1,6 18,0 40,9 20
App iatio n of fit o f 20 07: ropr pro
Tra nsfe lega l res d re tain ed e ings r to erve s an arn		-	-	284 ,044 ,038	(28 4,04 4,03 8)	-	-	-
Divi den ds d istri bute d	30	-	-	(56 ,016 ,000 )	-	(56 ,016 ,000 )	(3,3 52,3 50)	(59 ,368 ,350 )
Cha s in nge res erve s
In c ertio onv n re serv es		-	-	2,2 80,9 51	-	2,2 80,9 51	191 ,096	2,4 72,0 47
In h edg d fa ir va lue e an rese rves		-	-	5,9 98,9 66	-	5,9 98,9 66	4,06 5,02 1	10, 063 ,987
Adj of S e C apit al ri ght sha rela ted to th in-o ff ustm ents ona res e sp	12 e 17	-	-	23, 762 ,601	-	23, 762 ,601	-	23, 762 ,601
Aqu isitio nd s ales of s hare s of affi liate d un dert akin ns a gs		-	-	-	-	-	27, 086 ,463	27, 086 ,463
Cap ital incr ese as		-	-	-	-	-	37,4 25,0 00	37,4 25,0 00
In o ther res erve s		-	-	(2,3 10,5 54)	-	(2,3 10,5 54)	2,9 01,2 46	590 ,692
Con soli date d P rofit /(Lo ss) for t he s ix m onth s		-	-	-	-	-	-	-
end ed 3 0 Ju ne 2 008		-	-	-	24,2 18,0 43	24,2 18,0 43	(14 ,304 ,574 )	9,9 13,4 69
Bala at 3 0 Ju ne 2 008 nce as		2,0 00,0 00,0 00	(13 8,56 8,27 5)	(71 8,05 5,01 3)	24,2 18,0 43	1,16 7,59 4,75 5	502 ,392 ,074	1,66 9,98 6,82 9

The accompanying notes are part of these financial statements.

(1) The subsidiary Continente Hipermercados, S.A. (ex-Carrefour) was acquired in the end of 2007 and therefore no fair value allocation was made as at that date. During the first half of 2008 a preliminary fair value allocation was made and is now reflected in these financial statements (Note 8).

SONAE, S.G.P.S., S.A.

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR

THE SIX MONTHS PERIODS ENDED 30 JUNE 2008, 2007 PRO-FORMA AND 2007

(Amounts expressed in euro)

In case of discrepancies the Portuguese version prevails.) (Translation of consolidated financial statements originally issued in Portuguese.

		30.June.2008	30.June.2007 Pro-forma (Note 1)	30.June.2007
OPERATING ACTIVITIES	Notes
Net cash flow from/ (used in) operating activities (1)		(13,426,647)	31,067,407	27,995,075
INVESTING ACTIVITIES
Cash receipts arising from: Investments Tangible, intangible assets and investment properties Dividends Others		83,916,996 7,805,722 150,169 15,764,920	167,128,194 26,612,821 421,164 98,228,523	172,090,222 28,601,133 1,345,290 31,671,868
		107,637,807	292,390,702	233,708,513
Cash Payments arising from: Investments Tangible, intangible assets and investment properties Others		(37,820,185) (295,712,214) (23,636,892)	(39,810,369) (332,737,415) (140,118,582)	(95,996,963) (374,363,811) (9,504,320)
Net cash from/ (used in) investing activities (2)		(357,169,291)	(512,666,366)	(479,865,094)
		(249,531,484)	(220,275,664)	(246,156,581)
FINANCING ACTIVITIES Cash receipts arising from: Loans obtained Capital increases, additional paid in capital and share premiums		3,111,077,337 1,608,000 3,112,685,337	4,771,714,309 - 4,771,714,309	4,933,195,779 1,027,676 4,934,223,455
Cash Payments arising from: Loans obtained Interest and similar charges Reimbursement of capital and paid in capital Dividends Others		(2,758,665,568) (95,997,678) - (62,278,286) (112,162,224)	(4,391,973,629) (71,749,303) (83,322) (68,465,241) (2,360,378)	(4,514,431,021) (74,473,353) (83,322) (68,465,241) (2,474,327)
		(3,029,103,756)	(4,534,631,873)	(4,659,843,942)
Net cash from/ (used in) financing activities (3)		83,581,581	237,082,436	274,379,513
Net increase in cash and cash equivalents (4) = (1) + (2) + (3) Effect of foreign exchange rate Cash and cash equivalents at the beginning of the period	16	(179,376,550) (15,286) 275,625,572	47,874,179 (387,436) 640,915,659	56,218,007 (405,859) 648,811,274
Cash and cash equivalents at the end of the period	16	96,264,308	689,177,274	705,435,140

The accompanying notes are part of these financial statements.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FIRST HALF ENDED 30 JUNE 2008

(Amounts expressed in euro)

(Translation of consolidated financial statements originally issued in Portuguese. In case of discrepancies the Portuguese version prevails)

1. INTRODUCTION

SONAE, SGPS, SA ("the Company" or "Sonae"), with head office at Lugar do Espido, Via Norte, Apartado 1011, 4471-909 Maia, Portugal, is the parent company of a group of companies, as detailed in Notes 4 to 7 ("Sonae Group"). The Group's operations and business segments are described in Note 31.

The consolidated income statements and the consolidated statement of cash flows for the six months period ended as at 30 June 2008 are not directly comparable with the statements for the six months period ended 30 June 2007, because of the spin-off of the Sonae Capital business (with accounting effects from 1 October 2007).

The pro-forma consolidated income statement and the pro-forma consolidated statement of cash flows as at 30 June 2007 include the above mentioned changes as if occurred on the 1 January 2007.

2. PRINCIPAL ACCOUNTING POLICIES

The accounting policies adopted are consistent with those followed in the preparation of annual financial statements for the year ended 31 December 2007.

Basis of preparation

The accompanying consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS" – previously named International Accounting Standards – "IAS"), issued by the International Accounting Standards Board ("IASB") and interpretations issued by the International Financial Reporting Interpretations Committee ("IFRIC") or by the previous Standing Interpretations Committee ("SIC"), applicable to financial years beginning on 1 January 2008.

Interim financial statements are presented quarterly, in accordance with IAS 34 – "Interim Financial Reporting".

The accompanying consolidated financial statements have been prepared from the books and accounting records of the companies included in the consolidation (Notes 4 to 6) on a going concern basis and under the historical cost convention, except for investment properties and financial instruments which are stated at fair value.

3. CHANGES IN ACCOUNTING POLICIES AND CORRECTION OF ERRORS

During the period there were neither changes in accounting policies nor correction of prior period errors.

4. GROUP COMPANIES INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS

Group companies included in the consolidated financial statements, their head offices and percentage of share capital held by the Group as at 30 June 2008 and 31 December 2007 are as follows:

				Percentage of capital held
			30 June 2008		31 December 2007
COMPANY		Head Office	Direct	Total	Direct	Total
Sonae - SGPS, S.A.		Maia	HOLDING	HOLDING	HOLDING	HOLDING
Retail
Bertimóvel - Sociedade Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Best Offer - Prest. Inf. pela Internet, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Bikini, Portal de Mulheres, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Canasta - Empreendimentos Imobiliários, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Carnes do Continente - Ind. Distr. Carnes, SA	a)	Santarém	100.00%	100.00%	100.00%	100.00%
Chão Verde - Soc. de Gestão Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Citorres - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Contibomba - Comérc. Distr. Combustiveis, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Contimobe - Imobil.Castelo Paiva, SA	a)	Castelo de Paiva	100.00%	100.00%	100.00%	100.00%
Continente Hipermercados, SA	a)	Lisboa	99.90%	99.90%	99.86%	99.86%
Cumulativa - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Difusão - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
1) Edições Book.it, SA	a)	Matosinhos	100.00%	100.00%	-	-
Efanor - Design e Serviços, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Efanor - Indústria de Fios, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Equador & Mendes Agência de Viagens e Turismo, Lda	a)	Lisboa	67.50%	67.50%	67.50%	67.50%
Estevão Neves - Hipermercados Madeira, SA	a)	Madeira	100.00%	100.00%	100.00%	100.00%
Fozimo - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%

Fozmassimo - Sociedade Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Fundo de Investimento Imobiliário Fechado Imosonae Dois	a)	Maia	100.00%	100.00%	100.00%	100.00%
Global S - Hipermercado, Lda	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
IGI - Investimento Imobiliário, SA	a)	Porto	100.00%	100.00%	100.00%	100.00%
Igimo - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Iginha - Sociedade Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Imoconti - Sociedade Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Imoestrutura - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Imomuro - Sociedade Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Imoresultado - Sociedade Imobiliaria, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Imosistema - Sociedade Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Infofield - Informática, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Inventory - Acessórios de Casa, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Marcas MC, zRT	a)	Budapest	100.00%	100.00%	100.00%	100.00%
		(Hungary)
MJLF - Empreendimentos Imobiliários, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Modalfa - Comércio e Serviços, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Modelo - Dist.de Mat. de Construção, SA	b)	Maia	50.00%	50.00%	50.00%	50.00%
Modelo Continente - Operações Retalho SGPS, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Modelo Continente Hipermercados,SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Modelo Continente Seguros - Sociedade Mediação, SA	a)	Porto	100.00%	100.00%	100.00%	100.00%
Modelo Hiper Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Modelo Hipermercados Trading, SA	a)	Madrid (Spain)	100.00%	100.00%	100.00%	100.00%
Modelo.com - Vendas p/Correspond., SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
NA - Comércio de Artigos de Desporto, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
NA - Equipamentos para o Lar, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Nova Equador Internacional,Ag.Viag.T, Lda	a)	Lisboa	67.50%	67.50%	67.50%	67.50%
Nova Equador P.C.O. e Eventos, SA	a)	Lisboa	67.50%	67.50%	67.50%	67.50%
Peixes do Continente - Indústria e Distribuição de Peixes, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Pharmacontinente - Saúde e Higiene, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Predicomercial - Promoção Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Selifa - Empreendimentos Imobiliários, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Sempre à Mão - Sociedade Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Sesagest - Proj.Gestão Imobiliária, SA	a)	Porto	100.00%	100.00%	100.00%	100.00%
		Porto Alegre
5) SM Empreendimentos Imobiliários, Ltda	a)	(Brazil)	100.00%	100.00%	100.00%	100.00%
Socijofra - Sociedade Imobiliária, SA	a)	Gondomar	100.00%	100.00%	100.00%	100.00%
Sociloures - Soc.Imobiliária, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Soflorin, BV	a)	Amsterdam (The Netherlands)	100.00%	100.00%	100.00%	100.00%
Solaris - Supermercados, SA	a)	Viana do Castelo	100.00%	100.00%	100.00%	100.00%
Sonae Capital Brasil, Lda	a)	São Paulo	100.00%	100.00%	100.00%	100.00%
		(Brazil)
Sonae Distribuição, SGPS, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Sonae Retalho Espana - Servicios Generales, SA	a)	Madrid (Spain)	100.00%	100.00%	100.00%	100.00%
Sondis Imobiliária, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Sontária - Empreend.Imobiliários, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Sonvecap, BV	a)	Amsterdam (The	100.00%	100.00%	100.00%	100.00%
		Netherlands)
Sport Zone - Comércio Artigos de Desporto, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Sport Zone España - Comércio de Artículos de Deporte, SA	a)	Madrid (Spain)	100.00%	100.00%	100.00%	100.00%
Star - Viagens e Turismo, SA	a)	Lisboa	90.00%	90.00%	90.00%	90.00%
Tlantic Portugal - Sistemas de Informação, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Tlantic Sistemas de Informação, Ltda	a)	Porto Alegre (Brazil)	100.00%	100.00%	100.00%	100.00%
Todos os Dias - Com. Ret. Expl. C. Comer., SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Valor N, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Worten - Equipamento para o Lar, SA	a)	Matosinhos	100.00%	100.00%	100.00%	100.00%
Worten Espanã, SA	a)	Madrid (Spain)	100.00%	100.00%	100.00%	100.00%
Telecommunications
Be Artis - Concepção, Construção e Gestão de Redes de
2) Comunicações, SA	a)	Maia	100.00%	53.32%	100.00%	50.52%
3) Be Towering - Explor. Torres Telecom, SA	a)	Maia	100.00%	53.32%	100.00%	50.52%
Cape Asia Pac Pty Limited	a)	Australia	100.00%	53.32%	100.00%	50.52%
Cape Poland Sp.Z.o.o.	a)	Posnan (Poland)	100.00%	53.32%	100.00%	50.52%
Cape Tecnologies (U.K) Limitied	a)	Cardiff (U.K.)	100.00%	53.32%	100.00%	50.52%
Cape Tecnologies Americas, Inc.	a)	Delaware (USA)	100.00%	53.32%	100.00%	50.52%
Cape Tecnologies Limitied	a)	Dublin (Ireland)	100.00%	53.32%	100.00%	50.52%
Digitmarket - Sistemas de Informação, SA	a)	Maia	75.10%	40.05%	75.10%	37.94%
M3G - Edições Digitais, SA	a)	Lisboa	100.00%	53.32%	100.00%	50.52%
Mainroad Serviços em Tecnologias de Informação, SA	a)	Maia	100.00%	53.32%	100.00%	50.52%
Miauger - Org. Gestão Leilões El., SA	a)	Maia	100.00%	53.32%	100.00%	50.52%
Per-Mar - Sociedade de Construções, SA	a)	Maia	100.00%	53.32%	100.00%	50.52%
Praesidium Servises Limited	a)	Berkshire (U.K.)	100.00%	53.32%	100.00%	50.52%
Praesidium Tecnologies Limited	a)	Berkshire (U.K.)	100.00%	53.32%	100.00%	50.52%
Público - Comunicação Social, SA	a)	Porto	100.00%	53.32%	100.00%	50.52%
Saphety Level - Trusted Services, SA	a)	Maia	100.00%	53.32%	100.00%	50.52%
Sonae Telecom, SGPS, SA	a)	Maia	100.00%	53.32%	100.00%	50.52%
Sonaecom - Serviços de Comunicação, SA	a)	Maia	100.00%	53.32%	100.00%	50.52%
Sonaecom - Sistemas de Informação, SGPS, SA	a)	Maia	100.00%	53.32%	100.00%	50.52%

Sonaecom BV	a)	Amsterdam (The Netherlands)	100.00%	53.32%	100.00%	50.52%
Sonaecom, SGPS, SA	a)	Maia	53.32%	53.32%	50.52%	50.52%
Sonaetelecom, BV	a)	Amsterdam (The Netherlands)	100.00%	53.32%	100.00%	50.52%
Tecnológica Telecomunicações Ltda	a)	Rio de Janeiro (Brazil)	99.99%	53.27%	99.99%	50.47%
Telemilénio - Telecomunicações Soc.Unipessoal, Lda	a)	Lisboa	100.00%	53.32%	100.00%	50.52%
We Do Brasil - Soluções Informáticas, Ltda	a)	Rio de Janeiro (Brazil)	99.91%	53.27%	99.91%	50.47%
We Do Consulting - Sistemas de Informação, SA	a)	Maia	100.00%	53.32%	100.00%	50.42%
6) We Do Technologies (UK) Limited	a)	Berkshire (U.K.)	100.00%	53.32%	100.00%	50.52%
Others
Libra Serviços, Lda	a)	Funchal	100.00%	100.00%	100.00%	100.00%
MDS - Corretor de Seguros, SA	a)	Porto	100.00%	100.00%	100.00%	100.00%
4) MDS, SGPS, SA	a)	Maia	100.00%	100.00%	100.00%	100.00%
Sonae Investments, BV	a)	Amsterdam (The Netherlands)	100.00%	100.00%	100.00%	100.00%
Sonae RE, SA	a)	Luxembourg	100.00%	100.00%	100.00%	100.00%
1) Sonaecenter Serviços, SA	a)	Maia	100.00%	100.00%	-	-
Sonaegest-Soc.Gest.Fundos Investimentos, SA	a)	Maia	80.00%	70.00%	80.00%	70.00%
Sontel, BV	a)	Amsterdam (The Netherlands)	100.00%	100.00%	100.00%	100.00%

1) Company incorporated in the period;

• 2) Ex Optimus Artis Concepção, Construção e Gestão de Redes de Comunicações, SA;
• 3) Ex Optimus Towering Explor. Torres Telecom, SA;
• 4) Ex Resolução, SGPS, SA;
• 5) Company merged into Sonae Capital Brasil, Lda;
• 6) Ex Praesidium Holdings Limited.
• a) Majority of voting rights;
• b) Management control.

These group companies are consolidated using the full consolidation method.

5. JOINTLY CONTROLLED COMPANIES

Jointly controlled companies included in the consolidated financial statements, their head offices and the percentage of share capital held by the Group as at 30 June 2008 and 31 December 2007 are as follows:

			Percentage of capital held
		30 June 2008		31 December 2007
COMPANY	Head Office	Direct	Total	Direct	Total
Shopping Centres
3DO Holding GmbH	Dusseldorf (Germany)	100.00%	50.00%	100.00%	50.00%
3DO Shopping Centre GmbH	Dusseldorf (Germany)	100.00%	50.00%	100.00%	50.00%
3shoppings - Holding, SGPS, SA	Maia	100.00%	25.05%	100.00%	25.05%
8ª Avenida Centro Comercial, SA	Maia	100.00%	25.15%	100.00%	50.00%
Aegean Park Constructions Real Estate and Development, SA	Athens (Greece)	100.00%	25.00%	100.00%	25.00%
Airone - Shopping Centre, Srl	Milan (Italy)	100.00%	25.05%	100.00%	25.05%
ALEXA Administration GmbH	Berlin (Germany)	100.00%	25.00%	100.00%	25.00%
ALEXA Holding GmbH	Dusseldorf (Germany)	50.00%	25.00%	50.00%	25.00%
ALEXA Shopping Centre GmbH	Dusseldorf (Germany)	100.00%	25.00%	100.00%	25.00%
Algarveshopping - Centro Comercial, SA	Maia	100.00%	25.05%	100.00%	25.05%
Arrábidashopping - Centro Comercial, SA	Maia	50.00%	25.10%	50.00%	37.53%
Avenida M-40, BV	Amsterdam (The Netherlands)	100.00%	25.05%	100.00%	25.05%
Avenida M-40, SA	Madrid (Spain)	100.00%	25.05%	100.00%	25.05%
Cascaishopping - Centro Comercial, SA	Maia	50.00%	12.53%	50.00%	12.53%
Cascaishopping Holding I, SGPS, SA	Maia	100.00%	25.05%	100.00%	25.05%
Centro Colombo - Centro Comercial, SA	Maia	100.00%	12.53%	100.00%	12.53%
Centro Vasco da Gama - Centro Comercial, SA	Maia	50.00%	12.53%	50.00%	12.53%
Clérigoshopping - Gestão do C.Comerc., SA	Maia	100.00%	50.00%	100.00%	50.00%
Coimbrashopping - Centro Comercial, SA	Maia	100.00%	25.05%	100.00%	25.05%
Colombo Towers Holding, BV	Haya (The Netherlands)	50.00%	25.00%	50.00%	25.00%
Dortmund Tower GmbH	Dusseldorf (Germany)	100.00%	50.00%	100.00%	50.00%
Dos Mares - Shopping Centre, BV	Amsterdam (The Netherlands)	100.00%	25.05%	100.00%	25.05%
Dos Mares - Shopping Centre, SA	Madrid (Spain)	100.00%	25.05%	100.00%	25.05%
El Rosal Shopping, SA	Madrid (Spain)	70.00%	35.00%	70.00%	35.00%
Estação Viana - Centro Comercial, SA	Viana do Castelo	100.00%	25.05%	100.00%	25.05%
Freccia Rossa - Shopping Centre, Srl	Sondrio (Italy)	50.00%	25.00%	50.00%	25.00%

Fundo Investimento Imob. Shopping Parque D. Pedro Shopping, SA	São Paulo (Brazil)	100.00%	24.33%	100.00%	24.33%
Gaiashopping I - Centro Comercial, SA	Maia	50.00%	25.10%	50.00%	37.53%
Gaiashopping II - Centro Comercial, SA	Maia	100.00%	25.10%	100.00%	37.53%
Gil Orsi - Shopping Centre, Srl	Milan (Italy)	100.00%	50.00%	100.00%	50.00%
Guimarãeshopping - Centro Comercial, SA	Maia	100.00%	25.05%	100.00%	25.05%
Iberian Assets, SA	Madrid (Spain)	49.78%	12.48%	49.78%	12.48%
Inparsa - Gestão de Galeria Comerc., SA	Maia	100.00%	50.00%	100.00%	50.00%
Ioannina Development of Shopping Centres, SA	Athens (Greece)	100.00%	50.00%	100.00%	50.00%
KLC Holdings XII SA	Luxembourg	100.00%	50.00%	100.00%	50.00%
La Farga - Shopping Centre, SL	Madrid (Spain)	100.00%	12.48%	100.00%	12.48%
Larissa Development of Shopping Centres, SA	Athens (Greece)	100.00%	25.00%	100.00%	25.00%
Le Terrazze - Shopping Centre, Srl	Milan (Italy)	50.00%	25.00%	50.00%	25.00%
Lembo Services Ltd	Cyprus Dusseldorf	100.00%	50.00%	100.00%	50.00%
Loop 5 - Shopping Centre Gmbh	(Germany)	50.00%	50.00%	50.00%	25.00%
Loureshopping - Centro Comercial, SA	Maia	100.00%	12.58%	100.00%	25.00%
Luz del Tajo - Centro Comercial, SA	Madrid (Spain)	100.00%	25.05%	100.00%	25.05%
Luz del Tajo, BV	Amsterdam (The Netherlands)	100.00%	25.05%	100.00%	25.05%
Madeirashopping - Centro Comercial, SA	Funchal	50.00%	12.53%	50.00%	12.53%
Maiashopping - Centro Comercial, SA	Maia	100.00%	25.05%	100.00%	25.05%
MC Property Management, SA	Athens (Greece)	75.00%	18.75%	75.00%	18.75%
	Amsterdam (The
Munster Arkaden BV	Netherlands)	100.00%	25.05%	100.00%	25.05%
NorteShop. Retail and Leisure Centre, BV	Amsterdam (The Netherlands)	50.00%	12.53%	50.00%	12.53%
Norteshopping - Centro Comercial, SA	Maia	100.00%	12.53%	100.00%	12.53%
Oeste Retail Park - Gestão de G.Comer., SA	Maia	50.00%	12.58%	50.00%	25.00%
1) Pantheon Plaza 1, SA	Athens (Greece)	100.00%	25.00%	100.00%	25.00%
1) Pantheon Plaza 2, SA	Athens (Greece)	100.00%	25.00%	100.00%	25.00%
1) Pantheon Plaza 3, SA	Athens (Greece)	100.00%	25.00%	100.00%	25.00%
Pantheon Plaza BV	Amsterdam (The Netherlands)	50.00%	25.00%	50.00%	25.00%
Paracentro - Gestão de Gal.Comerc. SA	Maia	100.00%	50.00%	100.00%	50.00%
Park Avenue Develop. of Shop. Centers, SA	Athens (Greece)	100.00%	25.00%	100.00%	25.00%
Parque Atlântico Shopping - Centro Comercial SA	Ponta Delgada	50.00%	12.53%	50.00%	12.53%
Parque D. Pedro 1, BV Sarl	Luxembourg	100.00%	25.00%	100.00%	25.00%
Parque D. Pedro 2, BV Sarl	Luxembourg	100.00%	25.00%	100.00%	25.00%
Parque de Famalicão - Empr. Imob., SA	Maia	100.00%	50.00%	100.00%	50.00%
Parque Principado, SL	Madrid (Spain)	50.00%	12.53%	50.00%	12.53%
Pátio Boavista Shopping, Ltda	São Paulo	100.00%	23.69%	100.00%	23.69%
2) Pátio Goiânia Shopping, Ltda	(Brasil) São Paulo	100.00%	23.69%	-	-
	(Brazil) São Paulo
2) Pátio Londrina Empreendimentos e Participações, Ltda Pátio Penha Shopping, Ltda	(Brazil) São Paulo	100.00% 99.99%	23.69% 23.69%	- 99.99%	- 23.69%
	(Brazil) São Paulo
Pátio São Bernardo Shopping Ltda	(Brazil)	100.00%	23.69%	100.00%	23.69%
Pátio Sertório Shopping Ltda	São Paulo (Brazil)	100.00%	23.69%	100.00%	23.69%
Pátio Uberlândia Shopping Ltda	São Paulo (Brazil)	100.00%	23.69%	100.00%	23.69%
Plaza Eboli - Centro Comercial, SA	Madrid (Spain)	100.00%	50.00%	100.00%	50.00%
Plaza Eboli, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Plaza Mayor Holding, SGPS, SA	Maia	100.00%	25.05%	100.00%	25.05%
Plaza Mayor Parque de Ócio, BV	Amsterdam (The Netherlands)	100.00%	25.05%	100.00%	25.05%
Plaza Mayor Parque de Ocio, SA	Madrid (Spain)	100.00%	25.05%	100.00%	25.05%
Plaza Mayor Shopping, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Plaza Mayor Shopping, SA	Madrid (Spain)	75.00%	37.50%	75.00%	37.50%
Pridelease Investments, Ltd	Cascais	100.00%	50.00%	100.00%	50.00%
Project 4, Srl	Milan (Italy)	100.00%	50.00%	100.00%	50.00%
Project SC 1, BV	Amsterdam (The Netherlands)	50.00%	25.00%	50.00%	25.00%
Project SC 2, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Project Sierra - 1 Shopping Centre, GmbH	Vienne (Austria)	100.00%	50.00%	100.00%	50.00%
Project Sierra 2, BV	Amsterdam (The	100.00%	50.00%	100.00%	50.00%
	Netherlands) Amsterdam (The
Project Sierra 5, BV	Netherlands)	100.00%	50.00%	100.00%	50.00%
Project Sierra 6, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Project Sierra 7 BV	Bucharest (Romania)	100.00%	50.00%	100.00%	50.00%
Project Sierra Brazil 1, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%

Project Sierra Germany 2 (two), Shopping Centre GmbH	Dusseldorf (Germany)	100.00%	50.00%	100.00%	50.00%
Project Sierra Germany 3 (three), Shopping Centre, GmbH	Dusseldorf (Germany)	100.00%	50.00%	100.00%	50.00%
Project Sierra Germany 4 (four), Shopping Centre, GmbH	Dusseldorf	100.00%	50.00%	100.00%	50.00%
Project Sierra Germany Shopping Centre 1 BV	(Germany) Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Project Sierra Germany Shopping Centre 2 BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Project Sierra Holding Portugal V, SGPS, SA	Maia	100.00%	50.00%	100.00%	50.00%
Project Sierra Italy 1 - Shopping Centre, Srl	Milan (Italy)	100.00%	50.00%	100.00%	50.00%
Project Sierra Italy 2 - Dev.of Shopping Centres, Srl	Milan (Italy)	100.00%	50.00%	100.00%	50.00%
Project Sierra Italy 3 - Shopping Centre, Srl	Milan (Italy)	100.00%	50.00%	100.00%	50.00%
Project Sierra Italy 5 - Development of Shopping Centrs Sarl	Milan (Italy)	100.00%	50.00%	100.00%	50.00%
Project Sierra One Srl	Bucharest (Romania)	100.00%	50.00%	100.00%	50.00%
Project Sierra Portugal I - C.Comercial, SA	Maia	50.00%	25.00%	50.00%	25.00%
Project Sierra Portugal II - C.Comercial, SA	Maia	100.00%	50.00%	100.00%	50.00%
Project Sierra Portugal IV - C.Comercial, SA	Maia	100.00%	50.00%	100.00%	50.00%
Project Sierra Portugal V - C.Comercial, SA	Maia	100.00%	50.00%	100.00%	50.00%
Project Sierra Portugal VI - C. Comercial, SA	Maia	100.00%	50.00%	100.00%	50.00%
Project Sierra Portugal VII - C. Comercial, SA	Maia	100.00%	50.00%	100.00%	50.00%
Project Sierra Portugal VIII - C.Comercial, SA	Maia	100.00%	50.00%	100.00%	50.00%
Project Sierra Spain 1, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Project Sierra Spain 2 - C. Comerial, SA	Madrid (Spain)	100.00%	50.00%	100.00%	50.00%
Project Sierra Spain 2, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Project Sierra Spain 3 - C. Comercial, SA	Madrid (Spain)	50.00%	25.00%	50.00%	25.00%
Project Sierra Spain 3, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
2) Project Sierra Spain 6, BV	Amsterdam (The Netherlands)	100.00%	50.00%	-	-
2) Project Sierra Spain 7, BV	Amsterdam (The Netherlands)	100.00%	50.00%	-	-
Project Sierra Srl	Bucharest (Romania)	100.00%	50.00%	100.00%	50.00%
Project Sierra Three Srl	Bucharest (Romania)	100.00%	50.00%	100.00%	50.00%
Project Sierra Two Srl	Bucharest (Romania)	100.00%	50.00%	100.00%	50.00%
Rio Sul - Centro Comercial, SA	Lisboa	50.00%	12.58%	50.00%	25.00%
River Plaza BV	Amsterdam (The	100.00%	50.00%	100.00%	50.00%
	Netherlands)
River Plaza Mall, Srl	Bucharest (Romania)	100.00%	50.00%	100.00%	50.00%
S.C. Microcom Doi Srl	Bucharest (Romania)	100.00%	50.00%	100.00%	50.00%
SC Aegean, BV	Amsterdam (The Netherlands)	50.00%	25.00%	50.00%	25.00%
SC Mediterraneum Cosmos, BV	Amsterdam (The Netherlands)	50.00%	25.00%	50.00%	25.00%
Serra Shopping - Centro Comercial, S.A.	Covilhã	50.00%	12.58%	50.00%	25.00%
Shopping Centre Colombo Holding, BV	Amsterdam (The Netherlands)	50.00%	12.53%	50.00%	12.53%
Shopping Centre Parque Principado, BV	Amsterdam (The Netherlands)	100.00%	25.05%	100.00%	25.05%
Sierra Asset Management - Gest. Activos, SA	Maia	100.00%	50.00%	100.00%	50.00%
Sierra Brazil 1, BV	Amsterdam (The Netherlands)	100.00%	25.00%	100.00%	25.00%
Sierra Charagionis Develop. of Shop, Centers, SA	Athens (Greece)	50.00%	25.00%	50.00%	25.00%
Sierra Charagionis Propert.Management, SA	Athens (Greece)	50.00%	25.00%	50.00%	25.00%
Sierra Corporate Services - Ap.Gestão, SA	Lisboa	100.00%	50.00%	100.00%	50.00%

Sierra Corporate Services Holland, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Sierra Develop.Iberia 1, Prom.Imob., SA	Maia	100.00%	50.00%	100.00%	50.00%
Sierra Development Greece, SA	Athens (Greece)	100.00%	50.00%	100.00%	50.00%
Sierra Developments - Serv. Prom.Imob., SA	Maia	100.00%	50.00%	100.00%	50.00%
	Dusseldorf
Sierra Developments Germany GmbH	(Germany)	100.00%	50.00%	100.00%	50.00%
Sierra Developments Germany Holding, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Sierra Developments Holding, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Sierra Developments Italy, Srl	Milan (Italy)	100.00%	50.00%	100.00%	50.00%
Sierra Developments Services Srl	Bucharest	100.00%	50.00%	100.00%	50.00%
Sierra Developments Spain - Prom.C.Com., SL	(Romania) Madrid (Spain)	100.00%	50.00%	100.00%	50.00%
Sierra Developments, SGPS, SA	Maia	100.00%	50.00%	100.00%	50.00%
	São Paulo
Sierra Enplanta, Ltda	(Brazil)	100.00%	23.69%	100.00%	23.69%
Sierra European R.R.E. Assets Hold., BV	Amsterdam (The Netherlands)	50.10%	25.05%	50.10%	25.05%
Sierra GP, Limited	Guernsey (U.K.)	100.00%	49.99%	100.00%	49.99%
Sierra Investimentos Brasil Ltda	São Paulo (Brazil)	100.00%	23.69%	100.00%	23.69%
Sierra Investments (Holland) 1, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Sierra Investments (Holland) 2, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Sierra Investments Holding, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Sierra Investments SGPS, SA	Maia	100.00%	50.00%	100.00%	50.00%
Sierra Italy Holding, BV	Amsterdam (The Netherlands)	100.00%	50.00%	100.00%	50.00%
Sierra Man.New Tech.Bus. - Serv.Comu.CC, SA	Lisboa	100.00%	50.00%	100.00%	50.00%
Sierra Management Germany, GmbH	Dusseldorf (Germany)	100.00%	50.00%	100.00%	50.00%
Sierra Management Greece, SA	Athens (Greece)	100.00%	50.00%	100.00%	50.00%
Sierra Management II - Gestão de C.C., SA	Lisboa	100.00%	50.00%	100.00%	50.00%
Sierra Management Italy, Srl	Milan (Italy)	100.00%	50.00%	100.00%	50.00%
Sierra Management Portugal - Gest. CC, SA	Lisboa	100.00%	50.00%	100.00%	50.00%
Sierra Management Romania, Srl	Bucharest	100.00%	50.00%	100.00%	50.00%
Sierra Management Spain - Gestión C.Com., SA	(Romania) Madrid (Spain)	100.00%	50.00%	100.00%	50.00%
Sierra Management, SGPS, SA	Maia	100.00%	50.00%	100.00%	50.00%
Sol Retail Park - Gestão de G. Comerc., SA	Maia	50.00%	12.58%	50.00%	25.00%
	São Paulo
Sonae Sierra Brasil, SA	(Brazil)	94,54%	23.69%	94,54%	23.69%
Sonae Sierra Brazil, BV Sarl	Luxembourg	50.00%	25.00%	50.00%	25.00%
Sonae Sierra, SGPS, SA	Maia	50.00%	50.00%	50.00%	50.00%
SPF - Sierra Portugal Real Estate, Sarl	Luxembourg	100.00%	25.15%	100.00%	50.00%
SPF - Sierra Portugal, Sarl	Luxembourg	100.00%	50.00%	100.00%	50.00%
SRP - Parque Comercial de Setúbal, SA	Maia	50.00%	25.00%	50.00%	25.00%
3) SRP Development, SA	Bucharest (Romania)	100.00%	50.00%	-	-
Torre Ocidente - Imobiliária, SA	Maia	50.00%	12.50%	50.00%	12.50%
Torre Oriente - Imobiliária, SA	Maia	50.00%	12.50%	50.00%	12.50%
Unishopping Administradora, Ltda	São Paulo (Brazil)	100.00%	23.69%	100.00%	23.69%
Unishopping Consultoria Imob., Ltda	São Paulo (Brazil)	99.98%	23.69%	99.98%	23.69%
Valecenter Srl	Milan (Italy)	100.00%	25.05%	100.00%	25.05%
Via Catarina - Centro Comercial, SA	Maia	50.00%	12.53%	50.00%	12.53%
Weiterstadt Shopping BV	Amsterdam (The Netherlands)	100.00%	25.00%	100.00%	25.00%
Zubiarte Inversiones Inmob, SA	Madrid (Spain)	49.83%	12.48%	49.83%	12.48%
Telecommunications
Vipu ACE	Lisboa	50.00%	26.66%	50.00%	25.26%

1) Company merged into Larissa Development of Shopping Centres, SA.

2) Company incorporated in the period;

3) Company acquired in the period.

These entities are consolidated using the proportional consolidation method.

Aggregate amounts, excluding intragroup eliminations, corresponding to the percentage of capital held in these jointly controlled companies included in the financial statements for the period, using the proportional consolidation method, can be summarised as follows:

	30 June 2008	31 December 2007	30 June 2007
Non current assets	4,739,829,652	4,590,187,152	3,975,481,517
Current assets	490,079,154	515,149,354	428,634,840
Non current liabilities	1,825,234,886	1,996,914,291	1,839,232,240
Current liabilities	523,080,567	618,951,030	429,442,108
	30 June 2008	31 December 2007	30 June 2007
Income	131,993,217	444,471,226	221,971,623
Expenses	139,488,844	296,380,772	141,129,341

6. INVESTMENTS IN ASSOCIATED COMPANIES

Associated companies, their head offices and the percentage of share capital held as at 30 June 2008 and 31 December 2007 are as follows:

		Percentage of capital held
			30 June 2008		31 December 2007		Carrying amount
COMPANY	Head Office	Direct	Total	Direct	Total	30 June 2008	31 December 2007
Retail
Mundo Vip - Operadores Turísticos, SA	Lisboa	33.33%	33.33%	33.33%	33.33%	2,765,864	2,924,947
Sempre a Postos - Produtos Alimentares e Utilidades, Lda	Lisboa	25.00%	25.00%	25.00%	25.00%	959,644	943,957
Fundo de Investimento Imobiliário Fechado Imosede	Maia	42.16%	42.16%	42.16%	42.16%	34,413,793	34,010,917
Shopping Centres
Campo Limpo Lda	São Paulo (Brazil)	20.00%	4.70%	20.00%	4.70%	1,492,653	1,248,144
Mediterranean Cosmos Shop. Centre Investments, SA	Athens (Greece)	39.90%	9.98%	39.90%	9.98%	6,822,406	10,749,437
SIC Indoor - Gest. Suportes Publicitários, SA	Oeiras	35.00%	17.50%	35.00%	17.50%	-	-
Telecommunications
Net Mall SGPS, SA	Maia	39.51%	20.67%	39.51%	19.96%	-	-
SIRS - Sociedade Independente de Radiodifusão Sonora, SA	Porto	45.00%	23.54%	45.00%	22.73%	180,759	168,690
Unipress - Centro Gráfico, Lda	Vila Nova de Gaia	40.00%	20.93%	40.00%	20.21%	468,471	463,429
Others
Cooper Gay (Holding) Limited	U.K.	13.68%	13.68%	13.68%	13.68%	20,394,184	20,061,065
Lazam Corretora, Ltda	Brazil	45.00%	45.00%	45.00%	45.00%	2,986,328	2,978,054
Total						70,484,102	73,548,640

Nil balances shown result from the reduction of the acquisition cost of amounts by the use of the equity method.

Associated companies are included using the equity method.

As at 30 June 2008, 2007 pro-forma and 31 December 2007, aggregate values of main financial indicators of associated companies can be analysed as follows:

	30 June 2008	31 December 2007	30 June 2007 Pro-forma
Total Assets	766,335,689	780,046,272	732,531,563
Total Liabilities	561,139,768	546,507,394	551,087,683
Income	125,834,284	290,802,785	134,059,962
Expenses	113,746,345	259,565,597	125,876,169

During the periods ended 30 June 2008 and 2007 pro-forma, movements in Investments in associated companies, are made up as follows:

		30 June 2008			30 June 2007 Pro - forma
	Proportion on equity	Goodwill	Total of investment	Proportion on equity	Goodwill	Total of investment
Investments in associated companies
Initial balance as at January,1	51,468,671	22,079,969	73,548,640	27,586,080	4,029,078	31,615,158
Acquisitions during the period	-	-	-	19,339,498	-	19,339,498
Disposals during the period	-	-	-	-	-	-
Decrease of capital	(3,989,003)	-	(3,989,003)
Goodwill	-	-	-	(18,050,891)	18,050,891	-
Equity method					-	-
Effect in net income	1,302,927	-	1,302,927	898,779	-	898,779
Effect in equity	(424,355)	-	(424,355)	302,302	-	302,302
Transfers	45,893	-	45,893	133,189	-	133,189
Investments in associated companies	48,404,133	22,079,969	70,484,102	30,208,957	22,079,969	52,288,926

7. GROUP COMPANIES, JOINTLY CONTROLLED COMPANIES AND ASSOCIATED COMPANIES EXCLUDED FROM CONSOLIDATION AND OTHER NON CURRENT INVESTMENTS

Group companies, jointly controlled companies and associated companies excluded from consolidation and other non current investments, their head offices, percentage of share capital held and book value as at 30 June 2008 and 31 December 2007 are made up as follows:

			Percentage of capital held
	Exclusion			30 June 2008		31 December 2007		Book Value
COMPANY	Reason	Head Office	Direct	Total	Direct	Total	30 June 2008	31 December 2007
Retail
Dispar - Distrib. de Participações, SGPS, SA		Lisboa	7.14%	7.14%	7.14%	7.14%	4,988	4,988
Insco - Insular de Hipermerc., SA		Ponta Delgada	10.00%	10.00%	10.00%	10.00%	748,197	748,197
Shopping Centres
Ercasa Cogeneracion SA		Grancasa (Spain)	10.00%	1,25%	10.00%	1,25%	23,949	23,949
Telecommunications
Altitude, SGPS, SA		Lisboa	11.54%	6.04%	11.54%	5.83%	1,000,000	1,000,000
Lusa - Agên. de Noticias de Portugal, SA		Lisboa	1.38%	0.72%	1.38%	0.70%	197,344	197,344
Minhodigital.com - Inv. na Área Tecnológ., SA		Porto	4.76%	2.49%	4.76%	2.40%	-	-
Others
Sonae Investimentos América Latina, Lda	a)	São Paulo (Brazil)	99.99%	99.99%	99.99%	99.99%	25,687	25,687
Other investments							22,809,438	10,054,992
Total (Note 12)							24,809,603	12,055,157

a) Group company for which, at the date of the issuance of these financial statements, complete financial information was not available for the period;

Nil balances shown above result from deduction of impairment losses from related investments (Note 12).

As at 31 December 2007, "Other investments" included 8,155,301 euro related with the advance payment for the acquisition of a owner of an investment property named Ploiesti and which acquisition was concluded during the first half of 2008. As at 30 June 2008, this caption also includes 20,916,000 euro related to the fair value of Sonae Capital, SGPS, S.A. shares attributable to Sonae SGPS and not recognized as explained in Note 17.

8. CHANGES TO THE CONSOLIDATION PERIMETER

The subsidiary Continente Hipermercados S.A. (ex-Carrefour Portugal) was acquired by the end of 2007, and therefore no fair value allocation to the acquired assets was made at that date. This allocation was provisionally made during the first half of 2008, reported to 31 December 2007, and is reflected in these financial statements. The process is expected to be entirely concluded by the end of the current year, in accordance with the International Financial Reporting Standards ("IFRS").

		Acquisition date		31 December 2007
		Adjustments to Fair	Fair
	Book Value	Value	Value	Book Value
Acquired net assets
Tangible and intangible assets (Note 9)	267,013,229	77,796,876	344,810,105	267,013,229
Stocks	34,475,424	(10,371,772)	24,103,652	34,475,424
Other assets	5,788,904		5,788,904	5,788,904
Cash and cash equivalents	1,347,294		1,347,294	1,347,294
Deferred tax liabilities	1,845,583	(5,406,243)	(3,560,660)	1,845,583
Loans	(83,038,919)		(83,038,919)	(83,038,919)
Other liabilities	(150,218,081)	(4,157,381)	(154,375,462)	(150,218,081)
	77,213,434	57,861,480	135,074,914	77,213,434
Goodwill (Note 11)		57,802,012	450,397,819	504,847,714
Minority interests		59,468	(163,861)	(104,393)
Purchase amount		57,861,480	585,308,872	581,956,755
Payments made			611,200,000	611,200,000
Amounts receivable as result of the price adjustment			(30,113,103)	(30,414,000)
Costs arising on acquisition			4,221,975	1,170,755
			585,308,872	581,956,755
Net cash outflow arising from acquisition
Payments made			611,200,000	611,200,000
Costs arising on acquisition			4,221,975	1,170,755
Cash and cash equivalents purchased			(1,347,294)	(1,347,294)
Cash receipts resulting from the price adjustment			(30,113,103)	-
			583,961,578	611,023,461

In the consolidated statements of cash flows for the six months period ended 30 June 2008, the caption "Cash receipts related to Investments" includes the price adjustment in the amount of 30,113,103 Euro.

9. TANGIBLE AND INTANGIBLE ASSETS

During the six months period ended 30 June 2008 and 2007 pro-forma, movements in Tangible and Intangible assets as well as depreciation and accumulated impairment losses, are made up as follows:

			Tangible assets
				Tangible	Total
	Land and	Plant and		assets	Tangible
	Buildings	Machinery	Others	in progress	Assets
Gross costs:
Opening balance as at 1 January 2008	1,549,793,886	1,434,332,293	304,444,152	176,493,351	3,465,063,682
Adjustments to fair value (Note 8)	52,144,720	25,447,540	(5,402,044)	(925,928)	71,264,288
Opening balance as at 1 January 2008 adjusted	1,601,938,606	1,459,779,833	299,042,108	175,567,423	3,536,327,970
Capital expenditure	4,335,508	4,680,265	8,673,550	150,896,911	168,586,234
Disposals	(248,876)	(8,223,547)	(10,467,403)	(812,086)	(19,751,912)
Exchange rate effect	12,437	46,933	24,392		83,762
Transfers	9,628,942	69,969,175	6,887,418	(107,560,499)	(21,074,964)
Closing balance as at 30 June 2008	1,615,666,617	1,526,252,659	304,160,065	218,091,749	3,664,171,090
Accumulated depreciation
and impairment losses
Opening balance as at 1 January 2008	309,924,688	774,612,718	226,256,512	-	1,310,793,918
Adjustments to fair value (Note 8)	(17,571,285)	15,536,400	(4,497,703)	-	(6,532,588)
Opening balance as at 1 January 2008 adjusted	292,353,403	790,149,118	221,758,809	-	1,304,261,330
Charge for the period	16,870,125	70,795,615	18,349,862	-	106,015,602
Disposals	(21,373)	(6,908,763)	(10,189,612)	-	(17,119,748)
Exchange rate effect	6,408	14,964	3,725	-	25,097
Transfers	(2,383,063)	734,131	(262,963)	-	(1,911,895)
Closing balance as at 30 June 2008	306,825,500	854,785,065	229,659,821	-	1,391,270,386
Carrying amount
As at 30 June 2008	1,308,841,117	671,467,594	74,500,244	218,091,749	2,272,900,704
			Tangible assets

				Tangible	Total
	Land and	Plant and		assets	Tangible
	Buildings	Machinery	Others	in progress	Assets
Gross costs:
Opening balance as at 1 January 2007 pro-forma	1,245,290,430	1,227,901,679	265,679,558	70,467,119	2,809,338,786
Capital expenditure	5,761,039	2,120,881	1,624,041	125,336,316	134,842,277
Disposals	(21,766,608)	(3,889,540)	(1,629,023)	(576,819)	(27,861,990)
Exchange rate effect	457,737	88,338	61,741	13,065	620,881
Transfers	20,044,259	74,212,703	5,477,076	(101,532,559)	(1,798,521)
Closing balance as at 30 June 2008 pro-forma	1,249,786,857	1,300,434,061	271,213,393	93,707,122	2,915,141,433
Accumulated depreciation
and impairment losses
Opening balance as at 1 January 2007 pro-forma	236,152,091	645,988,456	187,879,320	-	1,070,019,867
Charge for the period	15,132,630	60,110,139	13,720,662	-	88,963,431
Disposals	(7,201,718)	(2,796,184)	(1,479,393)		(11,477,295)
Exchange rate effect	12,735	19,515	18,979	-	51,229
Transfers	(511,669)	(198,467)	(378,784)		(1,088,920)
Closing balance as at 30 June 2008 pro-forma	243,584,069	703,123,459	199,760,784	-	1,146,468,312
Carrying amount
As at 30 June 2007 pro-forma	1,006,202,788	597,310,602	71,452,609	93,707,122	1,768,673,121

Major amounts included in the caption Tangible assets in progress, refer to the following projects:

	30 June 2008	30 June 2007 Pro-forma
Refurbishment and expansion of stores in the retail segment located in Portugal	127,736,001	47,661,374
Projects of "Modelo" and "Continente" stores for which advance payments were made	35,127,836	19,511,486
Deployment of mobile network	36,867,165	13,227,827
Deployment of fixed network	7,816,717	7,686,494
Others	10,544,030	5,619,941
	218,091,749	93,707,122

The heading Transfers for the six mounts period ended 30 June 2008, includes 15,680,523 Euro related to assets that were reclassified to the caption "Non current assets held for sale". During the period, the Group disposed land and buildings held by a Brazilian subsidiary SM – Medicamentos, Ltda which were classified under the caption "Non current assets held for sale" as at 31 December 2007, generating a gain of, approximately, 9 million Euro recorded under the caption "Other operating income".

		Intangible assets
			Intangible	Total
	Patents and other		assets	Intangible
	similar rights	Others	in progress	Assets
Gross costs:
Opening balance as at 1 January 2008	274,917,793	340,533,967	21,477,187	636,928,947
Capital expenditure	96,263,221	1,212,384	13,826,367	111,301,972
Disposals	(485)	(359,713)	(589,530)	(949,728)
Exchange rate effect	72	95,250	-	95,322
Transfers	288,300	7,381,942	(7,982,669)	(312,427)
Closing balance as at 30 June 2008	371,468,901	348,863,830	26,731,355	747,064,086
Accumulated depreciation
and impairment losses
Opening balance as at 1 January 2008	54,460,087	234,800,716	-	289,260,803
Charge for the period	11,902,585	15,148,795	-	27,051,380
Disposals	(461)	(352,944)	-	(353,405)
Exchange rate effect	-	22,997	-	22,997
Transfers	(410)	(106)	-	(516)
Closing balance as at 30 June 2008	66,361,801	249,619,458	-	315,981,259
Carrying amount
As at 30 June 2008	305,107,100	99,244,372	26,731,355	431,082,827
		Intangible assets
			Intangible	Total
	Patents and other		assets	Intangible
	similar rights	Others	in progress	Assets

Gross costs:
Opening balance as at 1 January 2007 pro-forma	232,779,039	308,541,993	21,623,062	562,944,094
Capital expenditure	8,771,224	304,299	14,279,067	23,354,590
Disposals	-	(317,782)	(330,296)	(648,078)
Exchange rate effect	133	116,094	-	116,227
Transfers	1,436,945	10,037,011	(12,911,714)	(1,437,758)
Closing balance as at 30 June 2007 pro-forma	242,987,341	318,681,615	22,660,119	584,329,075
Accumulated depreciation
and impairment losses
Opening balance as at 1 January 2007 pro-forma	35,798,979	207,227,948	-	243,026,927
Charge for the period	7,939,949	13,467,261	-	21,407,210
Disposals	(261)	(390,391)	-	(390,652)
Exchange rate effect	-	5,123	-	5,123
Transfers	243,433	45,661	-	289,094
Closing balance as at 30 June 2007 pro-forma	43,982,100	220,355,602	-	264,337,702
Carrying amount
As at 30 June 2007 pro-forma	199,005,241	98,326,013	22,660,119	319,991,373

At 30 June 2008 and 2007, the Group has recorded under the heading "Patents and other similar rights" the amounts of 199,575,948 euro and 116,459,535 euro, respectively, that correspond to the investments net of depreciations made in the development of the UMTS network, including: (i) 67,506,482 euro (amount of 76,507,347 euro in 2007) relating to the license; (ii) 22,556,391 euro (amount of 25,563,910 euro in 2007) related to the agreement signed in 2002 between Oni Way and the other three mobile telecommunication operators in Portugal with UMTS licenses; (iii) 6,927,749 euro (amount of 7,851,441 euro in 2007) related to a contribution to the Information Society Fund, established in 2007, under an agreement entered into between the Ministry of Public Works, Transport and Communications ("Ministério das Obras Públicas, Transportes e Comunicações") and the three mobile telecommunication operators in Portugal; and (iv) 96,817,534 euro relating to the "Initiatives E" program, the latter relating to commitments assumed by the Group in the "Fund for Information Society" (Note 32).

Additionally, this heading also includes the fair value attributed to a group of brands with indefinite useful lives, among which the "Continente" brand, 75,000,000 euro (the same amount as at December 2007).

10. INVESTMENT PROPERTIES

Investment properties are recorded at fair value. These assets are owned by the shopping centres business and as such are consolidated using the proportional method.

As at 30 June 2008 and 31 December 2007, Investment properties are detailed as follows:

	30 June 2008	31 December 2007
Investment properties in operation	1,907,896,584	1,868,656,061
Investment properties in progress	217,987,727	193,472,865
	2,125,884,311	2,062,128,926

Investment properties in operation correspond to the fair value of the Group's share of shopping centres, which can be detailed as follows:

		30 June 2008		31 December 2007
	Amount	Yield range	Amount	Yield range
Portugal	1,035,797,912	5.05% to 7.15%	1,038,302,637	4.90% to 7.00%
Spain	433,516,570	5.40% to 7.80%	454,290,823	5.00% to 6.90%
Germany	171,852,000	5.50%	172,792,000	5.50%
Brazil	114,503,852	8.00% to 9.25%	97,664,101	8.50% to 10.50%
Italy	132,193,250	5.05% to 6.40%	84,255,000	5.50% to 6.15%
Romania	20,033,000	7.00%	21,351,500	6.75%
	1,907,896,584		1,868,656,061

The fair value of each investment property was determined by a valuation as at 30 June 2008, performed by an independent entity, based on valuation criteria generally accepted in the real estate business.

Value created on investment properties over the six months periods ended 30 June 2008 and 2007 pro-forma can be detailed as follows:

	30 June 2008	30 June 2007 Pro-forma
Properties which were under development and were concluded
during the six months period	9,659,185	619,381
Changes in fair value of investment properties in operation	(31,322,852)	102,154,516
Adjustments to construction cost estimates of properties under
development which were transferred to investment properties	-	-
	(21,663,667)	102,773,897

As at 30 June 2008 and 31 December 2007, Investment properties in progress can be detailed as follows:

	30 June 2008	31 December 2007
Portugal:
Arrábidashopping - expantion	-	2,375,011
Alverca	3,015,652	2,995,036
Caldas da Rainha Shopping	1,037,420	1,192,538
Cacém Shopping	1,082,714	1,036,919
Torres Oriente e Ocidente	1,111,347	192,426
Setubal Retail Park	786,154	786,164
Parque de Famalicão	627,500	627,500
Others	309,017	1,220,554
Germany:
Loop 5	30,808,545	25,612,284
Alexa	7,320,992	7,320,992
Others	140,461	-
Brazil:
Manauara Shopping	10,535,224	5,628,846
Pátio Uberlândia	1,601,241	1,530,607
Others	345,515	-
Spain:
Plaza Mayor Shopping	22,444,108	17,733,934
Alfaz del Pí	9,803,421	-
Puerta Granada	5,222,156	5,746,847
Dos Mares - expantion	1,404,902	1,404,902
Greece:
Pantheon Plaza	13,651,801	13,855,607
Ioannina	11,296,401	10,395,799
Aegean Park	4,877,130	4,845,206
Galatsi Shopping	3,323,103	3,159,277
Italy:
Freccia Rossa	-	32,263,488
Gli Orsi	37,451,838	23,397,730
Caldogno	4,472,414	4,138,655
Pavia	3,645,250	3,641,489
Le Terraze	1,654,296	1,891,179
Others	69,931	-
Romania:
Craiova	23,006,410	20,479,875
Ploiesti	16,942,784	-
	217,987,727	193,472,865

As at 30 June 2008, the following investment properties were mortgaged:

8ª Avenida	Loureshopping
Airone	Luz del Tajo
C.C. Modelo de Albufeira	Madeirashopping
Alexa	Maiashopping
Algarveshopping	Max Center
Arrabidashopping	Munster Arkaden
Avenida M40	Norteshopping
Cascaishopping	Parque Atlântico
Centro Colombo	Parque Principado
Centro Vasco da Gama	Plaza Éboli
Coimbrashopping	Plaza Mayor
Dos Mares	Plaza Mayor Shopping
El Rosal	C.C. Continente de Portimão
Estação Viana	Rio Sul
Freccia Rossa	River Plaza Mall
Gaiashopping	Serra Shopping
Galatsi	Valecenter
Grancasa	Valle Real
Guimarãeshopping	Viacatarina
La Farga	Zubiarte
Loop 5	Torre Ocidente
	Torre Oriente

11. GOODWILL

During the six months period ended 30 June 2008 and 2007 pro-forma and the twelve months period ended 31 December 2007, movements in goodwill, as well as in corresponding impairment losses, were made up as follows:

	30 June 2008	30 June 2007 Pro-forma	31 December 2007 Restated (Note 8)
Gross value:
Opening balance	693,049,656	228,273,461	264,411,899
New companies in the consolidation perimeter	1,800,257	1,830,401	477,403,248
Increases	18,114,550	1,749,761	30,035,581
Decreases	(12,933,741)	(10,274,740)	(12,999,103)
Demerger	-	-	(65,801,969)
Closing balance	700,030,722	221,578,883	693,049,656
Accumulated impairment
losses:
Opening balance	9,912,998	7,545,972	13,569,244
Increases	-	-	3,659,303
Decreases	-	-	(7,315,549)
Closing balance	9,912,998	7,545,972	9,912,998
Carrying amount:	690,117,724	214,032,911	683,136,658

During the period, an adjustment to the goodwill value in the amount of (57,802,012) Euro was recorded resulting from the fair value allocation made to the accounts of the subsidiary Continente Hipermercados, S.A. (ex-Carrefour Portugal) acquired at 31 December 2007.

12. INVESTMENTS

As at 30 June 2008 and 2007 Pro-forma, this caption is made up as follows:

		30 June 2008		30 June 2007 Pro-forma
	Non current	Current	Non current	Current
Investments in group companies, jointly controlled companies
or associated companies excluded from consolidation
Opening balance as at 1 January	9,376,193	-	3,130,999	-
Acquisitions in the period	-	-	660,000	-
Disposals in the period	-	-	-	-
Transfers	(8,155,301)	-	-	-
Closing balance as at 30 June	1,220,892	-	3,790,999	-
Accumulated impairment losses	-	-	-	-
	1,220,892	-	3,790,999	-
Investments available for sale
Fair value (net of impairment losses) as at 1 January	2,678,964	56,093,108	145,795,375	33,211,904
Acquisitions in the period	18,750	5,219,106	-	181,185
Disposals in the period	(25,000)	(1,182,312)	(113,045,429)	(342,290)
Increase/(Decrease) in fair value	(2,846,681)	(595,921)	-	(1,935,523)
Transfers (Note 17)	23,762,678	2,014,342	2,530,210	2,580,373
Fair value (net of impairment losses) as at 30 June	23,588,711	61,548,323	35,280,156	33,695,649
Other Investments (Note 7)	24,809,603	61,548,323	39,071,155	33,695,649
Derivative financial instruments (Note 20)
Fair value as at 1 January	-	3,976,816	-	49,458
Acquisitions in the period	-	-	-	9,773
Disposals in the period	-	(1,971)	-	(49,458)
Increase/(Decrease) in fair value	-	2,218,539	-	3,295,801
Fair value as at 30 June	-	6,193,384	-	3,305,574
	24,809,603	67,741,707	39,071,155	37,001,223

The financial investments in group companies, jointly controlled companies or associated companies excluded from consolidation are recorded at the acquisition cost net of impairment losses. It is Group understanding that no reliable fair value estimate could be made as there is no market data available for these investments. The heading of Investments available for sale includes 2,672,682 euro (35,280,156 euro in 30 June 2007 pro-forma) of investments recorded at the cost net of impairment losses for the same reasons.

The investments available for sale are net impairment losses (Note 24) amounting 26,314 euro (2,565,541 euro in 30 June 2007 pro-forma).

The caption Investments available for sale includes 56,094,121 euro (33,095,056 euro as non current and 33,095,056 euro as current on 30 June 2007) of deposits in an Escrow Account which are invested in investment funds with superior rating and guarantee contractual liabilities which may arise from the sale of the Brazilian subsidiaries in the Retail segment and for which provisions were recognized (Note 24).

13. OTHER NON CURRENT ASSETS

As at 30 June 2008 and 31 December 2007, Other non current assets are detailed as follows:

		30 June 2008			31 December 2007
	Gross Value	Accumulated losses impairment (Note 24)	Carrying Amount	Gross Value	Accumulated losses impairment (Note 24)	Carrying Amount
Loans granted to related parties
Mundo Vip - Operadores Turísticos, SA	1,000,000	-	1,000,000	1,000,000	-	1,000,000
Cooper Gay (Holding) Limited	14,476,560	-	14,476,560	1,943,295	-	1,943,295
Others	209,967	(170,125)	39,842	346,654	(170,125)	176,529
	15,686,527	(170,125)	15,516,402	3,289,949	(170,125)	3,119,824
Trade accounts receivable and other debtors
Legal deposits	819,521	-	819,521	792,644	-	792,644
Lisbon Town Councils	3,888,477	-	3,888,477	3,888,477	-	3,888,477
Malaga Town Councils	512,108	-	512,108	512,108	-	512,108
Rent deposits from tenants	5,020,458	-	5,020,458	4,394,235	-	4,394,235
Others	508,760	(131,446)	377,314	582,691	(131,446)	451,245
	10,749,324	(131,446)	10,617,878	10,170,155	(131,446)	10,038,709
Non current derivatives (Note 20)	18,357,127	-	18,357,127	7,346,945	-	7,346,945
Total financial instruments	44,792,978	(301,571)	44,491,407	20,807,049	(301,571)	20,505,478
Reinsurer's' share of technical provisions (Note 24)	15,944,281	-	15,944,281	54,060,294	-	54,060,294
Other non current assets	50,978	-	50,978	50,977	-	50,977
	60,788,237	(301,571)	60,486,666	74,918,320	(301,571)	74,616,749

14. TRADE DEBTORS AND OTHER CURRENT ASSETS

As at 30 June 2008 and 31 December 2007, Trade debtors and other current assets are detailed as follows:

	30 June 2008	31 December 2007
Trade accounts receivable	312,749,326	315,058,659
Taxes recoverable	100,464,583	86,514,614
Trade suppliers - debit balances	53,081,355	46,822,333
Special regime for payment of tax and social security debts	14,576,053	14,576,053
VAT recoverable on retail estate assets	5,176,803	4,776,482
Vouchers and gift cards	4,965,967	1,971,192
Other debtors	37,925,406	27,983,812
Accounts receivable from the disposal of investments	11,630,818	4,328,720
Accounts receivable from the disposal of tangible fixed assets	9,564,196	790,575
Amount receivable regarding price adjustments of acquired subsidiaries (Note 8)	-	30,414,000
Advances for real estate project acquisitions	7,500,000	-
Advances to suppliers	14,478,427	22,236,065
Accounts receivable related to reinsurance operations	20,088,109	9,072,963
Invoices to be issued	72,585,574	70,459,857
Commercial discounts	28,337,119	5,887,081
Commissions	1,872,866	6,260,720
Prepayments - Rents	8,750,494	3,833,921
Prepayments - external supplies and services	22,205,813	15,178,385
"Initiatives E" program	15,319,880	-
Other current assets	7,978,714	20,019,622
	749,251,503	686,185,054
Accumulated impairment losses (Note 24)	(99,434,774)	(95,235,846)
	649,816,729	590,949,208

15. DEFERRED TAX

Deferred tax assets and liabilities as at 30 June 2008 and 31 December 2007 can be detailed as follows, split between the different types of temporary differences:

		Deferred tax assets		Deferred tax liabilities
	30 June 2008	31 December 2007 Restated (Note 8)	30 June 2008	31 December 2007 Restated (Note 8)
Difference between fair value and acquisition cost	3,400,404	5,503,979	310,651,072	307,198,707
Harmonisation adjustments	81,657	81,897	25,701,429	24,978,921
Provisions and impairment losses not accepted for tax purposes	14,124,478	12,900,045	-	-
Write off of tangible and intangible assets	61,287,038	60,114,242	-	-
Write off of deferred costs	42,520,616	41,026,618	2,409,354	2,097,786
Valuation of hedging derivatives	190,008	296,245	5,671,239	2,614,826
Revaluation of tangible assets	-	-	2,491,307	2,523,410
Tax losses carried forward	25,630,194	20,969,753	-	-
Reinvested capital gains/(losses)	-	-	3,388,540	3,428,201
Others	(413,183)	151,929	4,270,668	2,223,343
	146,821,212	141,044,708	354,583,609	345,065,194

In accordance with the tax statements and tax estimates presented by companies that recorded deferred tax assets arising from tax losses carried forward, as at 30 June 2008 and 31 December 2007, and using exchange rates effective at that time, tax losses carried forward can be summarised as follows:

		30 June 2008			31 December 2007
	Tax losses carried forward	Deferred tax assets	Time limit	Tax losses carried forward	Deferred tax assets	Time limit
With limited time use
Generated in 2002	12,343,361	3,085,839	2008	12,816,002	3,204,001	2008
Generated in 2003	11,431,383	2,857,845	2009	10,854,186	2,713,546	2009
Generated in 2004	4,793,922	1,198,481	2010	2,660,665	665,166	2010
Generated in 2005	8,850,900	2,212,725	2011	8,378,182	2,094,546	2011
Generated in 2006	12,221,776	3,055,444	2012	4,576,150	1,144,037	2012
Generated in 2007	3,982,270	995,810	2013	3,960,967	990,242	2013
Generated in 2008	3,174,972	793,744	2014
	56,798,584	14,199,888		43,246,152	10,811,538
Without limited time use	7,069,360	1,944,406		6,783,431	1,922,301
With a time limit different from the above mentioned	31,978,904	9,485,900		27,620,047	8,235,914
	39,048,264	11,430,306		34,403,478	10,158,215
	95,846,848	25,630,194		77,649,630	20,969,753

As at 30 June 2008 and 31 December 2007, Deferred tax assets resulting from tax losses carried forward were re-assessed against each company's business plans, which are regularly updated, and available tax planning opportunities. Deferred tax assets have only been recognized to the extent that future taxable profits will arise which may be offset against available tax losses or against deductible temporary differences.

As at 30 June 2008 tax losses carried forward, amounting to 1,165,982,105 euro (1,013,542,711 euro at 31 December 2007), have not originated deferred tax assets for prudential reasons. These may be summarised as follows:

	30 June 2008		31 December 2007
	Tax losses carried forward	Deferred tax credit	Time limit	Tax losses carried forward	Deferred tax credit	Time limit
With limited time use
Generated in 2002	426,239,118	106,559,778	2008	433,259,735	108,315,185	2008
Generated in 2003	40,471,180	10,117,796	2009	41,896,110	10,474,030	2009
Generated in 2004	21,723,512	5,430,878	2010	23,869,128	5,967,282	2010
Generated in 2005	54,904,363	13,726,091	2011	89,006,183	22,251,545	2011
Generated in 2006	60,356,933	15,089,234	2012	68,204,804	17,051,201	2012
Generated in 2007	106,845,874	26,711,469	2013	103,549,416	25,887,353	2013
Generated in 2008	20,663,272	5,165,818	2014
	731,204,252	182,801,064		759,785,376	189,946,596
Without limited time use	29,764,921	8,800,178		34,124,969	10,101,615
With a time limit different from the above mentioned	405,012,932	116,800,623		219,632,366	63,700,019
	1,165,982,105	308,401,865		1,013,542,711	263,748,230

16. CASH AND CASH EQUIVALENTS

As at 30 June 2008 and 31 December 2007, Cash and cash equivalents can be detailed as follows:

	30 June 2008	31 December 2007
Cash at hand	6,014,333	6,482,624
Bank deposits	87,011,502	190,688,029
Treasury applications	23,732,840	89,230,800
Cash and cash equivalents on the balance sheet	116,758,675	286,401,453
Bank overdrafts (Note 19)	(20,494,367)	(10,775,881)
Cash and cash equivalents on the statement of cash flows	96,264,308	275,625,572

Bank overdrafts are disclosed in the balance sheet under Current bank loans.

17. SHARE CAPITAL

As at 30 June 2008, the share capital, which is fully subscribed and paid for, is made up of 2,000,000,000 ordinary shares, which do not have the right to a fixed dividend, with a nominal value of 1 euro each.

On 15 November 2007, Sonae SGPS, SA sold, 132,856,072 Sonae SGPS, SA shares directly owned by the Company. The shares were sold in a market operation at the unit price of 2.06 euro per share and resulted on a cash inflow (net of brokerage commissions) of 273,398,877 euro.

On the same date, Sonae Investments, BV, wholly owned by Sonae SGPS, SA, entered into a derivative financial instrument - Cash Settled Equity Swap - over a total of 132,800,000 Sonae SGPS, SA shares, representative of 6.64% of its capital.

This transaction has a maximum maturity of three years and a strictly financial liquidation, without any duty or right for the Company or any of its associated companies in the purchase of these shares. This transaction allows Sonae to totally maintain the economic exposure to the sold shares.

In this context, although legally all the rights and obligations inherent to these shares have been transferred to the buyer, Sonae SGPS, SA did not derecognize its own shares, recording a liability in the caption Other non-current liabilities (Note 21). According to the interpretation made by the Group of IAS 39, applied by analogy to own equity instruments, the derecognition of own shares is not allowed as the group maintains the risks and rewards arising on the instruments sold.

Consequently, the Group maintains the deduction from Equity amounting to the acquisition cost of the 132,800,000 shares (138,568,275 euro), and has accounted for the consideration received for the above mentioned sale of own shares in the caption Other non-current liabilities (273,568,000 euro).

Due to the detach of Sonae Capital SGPS, SA demerger rights attributable to the 132,800,000 Sonae SGPS, SA shares subject of the above mentioned agreement, the Group recognized an asset measured at its' the fair value of those rights. This asset as not been derecognized as the Group also entered into a Cash Settled Equity Swap over the Sonae Capital SGPS, SA shares, and therefore a liability was recognized. Consequently, and in relation with this operation the full liability amount can be detailed as follows: market value of Sonae SGPS, SA shares amounting to 101,592,000 euro and market value of Sonae Capital SGPS, SA shares amounting to 20,916,000 euro.

These liabilities are adjusted at the end of each month by the effect of the change in Sonae, SGPS, S.A. or Sonae Capital, SGPS, S.A. share price, as applicable, being recognized an asset/liability in order to present the right/obligation related to the cash settlement of the operation that resets monthly (Notes 21 and 23).

Additionally, the costs related to the "floating amount" based on Euribor 1 month are recorded in the income statement.

The receivable amount arising on dividends distributed by the Company is credited to Equity in order to offset the charge of the distribution. The dividends attributable to the above mentioned share amount to 3,984,000 euro and were credited to Equity.

The number of shares taken into consideration to calculate earnings per share includes the shares referred to above as a deduction to the shares issued by the Company (Note 29).

As at 30 June 2008, the following entities held more than 20% of the subscribed share capital:

Entity	%
Efanor Investimentos, SGPS, S.A. and associated companies	52.94

18. MINORITY INTERESTS

Movements in minority interests during the periods ended 30 June 2008 and 2007 pro-forma and 31 December 2007 are as follows:

	30 June 2008	30 June 2007 Pro-forma	31 December 2007 Adjusted (Note 8)
Opening balance as at 1 January	448,380,172	411,547,735	402,058,314
Dividends	(3,352,350)	(12,649,552)	(21,887,082)
Exchange rate effect	191,096	273,839	373,748
Acquisition of subsidiaries	-	-	(9,618,297)
Disposal of subsidiaries	-	-	(2,171,988)
Demerger of Sonae Capital	-	-	9,310,396
Increase of capital and premium on subsidiaries	37,425,000	-	-
Increased shareholding by acquisitions	(12,666,733)	(7,775,274)	(8,454,103)
Decreased shareholding by disposals	39,778,232	-	-
Changes in hedge and fair value reserves	4,065,021	(744,921)	868,668
Others	2,876,210	7,134,533	5,230,472
Profit for the period attributable to minority interests	(14,304,574)	38,591,341	72,670,044
Closing balance	502,392,074	436,377,701	448,380,172

19. BORROWINGS

As at 30 June 2008 and 31 December 2007, Borrowings are made up as follows:

		30 June 2008			31 December 2007
		Outstanding amount			Outstanding amount
	Amount limit	Current	Non Current	Amount limit	Current	Non Current
Bank loans
Sonae, SGPS, SA - commercial paper	350,000,000	29,000,000	-	350,000,000	-	-
Sonae Distribuição, SGPS,SA - commercial paper	563,000,000	25,000,000	249,000,000	163,000,000	-	-
a)b) Sonae Sierra subsidiaries	510,907,209	22,642,241	433,361,708	498,624,959	16,476,410	417,635,936
a)b)c) Sonae Sierra subsidiaries	508,144,816	9,152,078	452,840,527	452,885,624	5,971,751	401,044,158
Sonaecom SGPS, SA - commercial paper	250,000,000	-	207,500,000	250,000,000	-	225,000,000
Continente Hipermercados SA - commercial paper	80,000,000	80,000,000	-	80,000,000	80,000,000	-
Sonae Investments BV	32,154,000	1,537,735	-	32,154,000	4,613,205	-
Others		2,388,915	22,428,276		12,047,631	22,532,078
		169,720,969	1,365,130,511		119,108,997	1,066,212,172
Bank overdrafts (Note 16)		20,494,367	-		10,775,881	-
Up-front fees bearded with the issuance of borrowings		(691,700)	(6,843,142)		(677,170)	(6,521,094)
Bank loans		189,523,636	1,358,287,369		129,207,708	1,059,691,078
Bonds:
Bonds Sonae / 05		-	100,000,000		-	100,000,000
Bonds Sonae 2006/2011		-	250,000,000		-	250,000,000
Bonds Sonae 2007/2014		-	150,000,000		-	150,000,000
Bonds Modelo Continente / 2003		-	82,000,000		-	82,000,000
Bonds Modelo Continente / 2004		100,000,000	-		-	100,000,000
Bonds Modelo Continente 2005/2010		-	64,925,000		-	64,925,000
Bonds Modelo Continente 2005/2012		-	150,000,000		-	150,000,000
Bonds Modelo Continente 2007/2012		-	200,000,000		-	200,000,000
Bonds Modelo Continente 2007/2015		-	200,000,000		-	200,000,000
Bonds Modelo Continente 2007/2016		-	310,000,000		-	310,000,000
Bonds Sonaecom / 2005		-	150,000,000		-	150,000,000
Up-front fees bearded with the issuance of borrowings		(71,388)	(11,187,670)		-	(12,074,291)
Bonds		99,928,612	1,645,737,330		-	1,744,850,709
Other loans		24,952	267,948		36,229	276,330
Derivative instruments (Note 20)		176,711	610,213		363,463	828,199
Other loans		201,663	878,161		399,692	1,104,529
Obligations under finance leases		6,059,316	22,234,731		8,709,711	23,470,674
		295,713,227	3,027,137,591		138,317,111	2,829,116,990

a) These amounts are proportionate considering the percentage held by the group;

b) These loans are guaranteed by mortgages of investment properties held by these affiliated companies;

c) These loans are guaranteed by a pledge of shares held in those affiliated companies;

Interest rate of the bonds are equal to Euribor 6 months plus a spread between 0.25% and 1.15%.

Bank loans bear interests at market rates based on Euribor for each interest payment term, therefore the fair value of bank loans are estimated to be similar to their market value.

The derivative instruments are recorded at fair value (Note 20).

The repayment schedule of the nominal value of borrowings may be summarised as follows:

	30 June 2008	31 December 2007
N+1	296,299,604	138,630,818
N+2	56,241,952	123,716,946
N+3	417,763,736	226,053,892
N+4	114,201,637	357,710,073
N+5	793,728,337	528,494,772
After N+5	1,662,622,528	1,610,908,493
	3,340,857,794	2,985,514,994

20. DERIVATIVES

Exchange rate derivatives

The Group uses exchange rate derivatives, essentially to hedge future cash flows.

The Group contracted several exchange rate forwards and options in order to manage its exchange rate exposure.

As at 30 June 2008, the fair value of exchange rate derivatives, calculated based on present market value of equivalent financial instruments, is of 175,879 euro included in Current liabilities (281,123 euro as of 31 December 2007) and 2,206,803 euro on the caption Current investments (2,151,335 euro as at 31 December 2007). From the total amount registered in Assets, 2,174,839 euro refers to exchange rate derivative transactions (Non Deliverable Forwards - "NDF") entered into during 2008 in order to hedge the exchange rate exposure as consequence of the share purchase agreement with the Sonae Sierra partner in Brazil (DDR), to reinvest the amount of 300,000,000 Brazilian Real until the end of 2009. The notional of the NDF amounts to 115.042.000 Brazilian Real.

The non-deliverable forward foreign exchange contracts (NDFs) are stated at their fair value at the balance sheet date, in accordance with a valuation made by the bank with which the NDF were contracted.

The computation of the fair value of these financial instruments was made taking into consideration the present value at balance sheet date of the forward settlement amount of the relevant NDF contract. The settlement amount considered in the valuation, is equal to the reference currency notional amount (foreign currency) multiplied by the difference between the contracted forward exchange rate and the forward exchange market rate to the settlement date as at the valuation date.

Losses in the period arising from changes in the fair value of instruments that do not qualify for hedging accounting treatment were recorded directly in the income statement in the caption Net financial expenses.

Interest rate derivatives

As at 30 June 2008, derivatives used by the Group refer essentially to interest rate options ("cash flow hedges"). These were negotiated to hedge the interest rate risk of loans amounting to 1,409,127,391 euro (1,302,514,561 euro as at 31 December 2007). The fair value of these derivatives amounts to 21,733,495 euro (8,344,227 euro as at 31 December 2007), and is disclosed as assets amounting to 22,343,708 euro (9,172,426 euro as at 31 December 2007) and as liabilities amounting to 610,213 euro (828,199 euro as at 31 de December de 2007). As at 30 June 2008, 832 euro of the amount disclosed as liabilities (82,340 euro as at 31 December 2007) relates to derivatives on loans which no longer qualify as hedging derivatives, although continuing to hedge interest risks.

These interest rate derivatives are valued at fair value, at the balance sheet date, based on valuations performed by the Group using specific software and on external valuations when this software does not deal with specific instruments. The fair value of swaps was calculated, as at the balance sheet date, based on the discounted cash flow of the difference between the fixed interest rate of the fixed leg and the indexed variable interest rate inherent to the variable leg. The calculation of the fair value of options was based on the "Black-Scholes" and similar models.

Interest rate and exchange rate derivatives

As at 30 June 2008 no contracts existed related to interest rate and exchange rate derivatives.

Fair value of derivatives

The fair value of derivatives is detailed as follows:

		Assets		Liabilities
	30 June 2008	31 December 2007	30 June 2008	31 December 2007
Derivatives not qualified as hedging
Exchange rate	2,176,352	2,151,335	175,879	281,123
Interest rate	-	-	832	82,340
Hedging derivatives
Exchange rate	30,451	-	-	-
Interest rate	22,343,708	9,172,426	610,213	828,199
Interest and exchange rate	-	-	-	-
Other derivatives	-	-	-	-
	24,550,511	11,323,761	786,924	1,191,662

21. OTHER NON CURRENT LIABILITIES

As at 30 June 2008 and 31 December 2007, Other non current liabilities were made up as follows:

	30 June 2008	31 December 2007
Shareholder loans	16,052,172	24,107,894
Fixed assets suppliers	13,049,585	11,597,003
"Initiatives E" program (Note 32)	72,422,000	-
Other non current liabilities	135,258,610	277,318,229
	236,782,367	313,023,126

The caption Other non-current liabilities includes the amount of 122,508,000 euro (263,059,508 euro as at 31 December 2007) related to the fair value of the derivative on Sonae SGPS, SA shares referred to in Note 17.

22. SHARE-BASED PAYMENTS

In 2008 and in previous years, the Sonae Group granted deferred performance bonuses to its directors and eligible employees. These are either based on shares to be acquired at nil cost, three years after they were attributed to the employee, or based on share options with the exercise price equal to the share price at the grant date, to be exercised three years later. In both cases, the acquisition can be exercised during the period commencing on the third anniversary of the grant date and the end of that year. The company has the choice to settle in cash instead of shares. The option can only be exercised if the employee still works for the Group on the vesting date.

As at 30 June 2008 and 31 December 2007, the market value of total liabilities arising from share-based payments, which have not yet vested, may be summarised as follows:

	Grant	Vesting	Number of		Fair value
	year	year	participants	30 June 2008	31 December 2007
Shares
	2005	2008	67	-	8,956,701
	2006	2009	453	4,152,727	7,472,751
	2007	2010	481	3,908,270	7,856,374
	2008	2011	494	3,728,836	-
Total				11,789,833	24,285,826

As at 30 June 2008 and 31 December 2007 the financial statements include the following amounts corresponding to the period elapsed between the date of granting and those dates for each deferred bonus plan, which has not yet vested:

	30 June 2008	31 December 2007
Staff costs	(681,037)	12,906,145
Recorded in previous years	8,429,243	4,368,199
	7,748,206	17,274,344
Other liabilities	7,748,206	17,274,344

23. TRADE CREDITORS AND OTHER CURRENT LIABILITIES

As at 30 June 2008 and 31 December 2007, Trade creditors and other current liabilities were made up as follows:

	30 June 2008	31 December 2007
Trade creditors	852,161,633	988,803,378
Shareholders	5,118,874	30,616,400
Fixed asset suppliers	76,390,575	97,446,196
Creditors related with reinsurance operations	14,340,555	84,767
Other accounts payable	52,369,821	41,501,888
Taxes and contributions payable	43,575,076	62,131,632
Effect of changes in the share price of Sonae SGPS and Sonae Capital (Note 17)	41,832,000	10,624,000
Vouchers	14,387,783	13,182,904
Property investments accruals	10,522,401	27,231,695
Fixed assets accrued costs	25,462,194	23,507,992
"Initiatives E" program (Note 32)	17,557,099	-
Holiday pay and bonuses	101,369,372	103,767,265
Interest payable	34,718,062	33,975,996
Invoices to be issued	60,159,404	67,830,234
Commissions	6,748,199	7,922,541
Marketing expenses	14,868,204	27,152,426
Other external supplies and services	50,687,694	49,632,490
Accrued income - trade debtors	10,267,500	9,802,707
Accrued income - rents	5,535,952	5,260,081
Prepaid minutes not yet used	17,978,221	36,572,193
Others	49,964,222	47,363,909
	1,506,014,841	1,684,410,694

24. PROVISIONS AND ACCUMULATED IMPAIRMENT LOSSES

Movements in Provisions and impairment losses over the six months period ended 30 June 2008 and 2007 pro-forma were as follows:

	Balance as at 31 December 2007	Adjustments to fair value	Balance as at 31 December 2007 restated (Note 8)	Increase	Decrease	Balance as at 30 June 2008
Accumulated impairment losses on investments (Note 12)	26,314	-	26,314	-	-	26,314
Accumulated impairment losses on other non current assets (Note 13)	301,571	-	301,571	-	-	301,571
Accumulated impairment losses on trade account receivables and other debtors (Note 14)	95,235,848	-	95,235,848	8,859,235	(4,660,309)	99,434,774
Accumulated impairment losses on inventories	24,759,431	-	24,759,431	9,585,449	(8,072,188)	26,272,692
Non current provisions	107,984,226	2,600,000	110,584,226	9,739,308	(45,954,614)	74,368,920
Current provisions	2,295,457	370,500	2,665,957	-	(105,473)	2,560,484
	230,602,847	2,970,500	233,573,347	28,183,992	(58,792,584)	202,964,755
	Balance as at 31 December 2006	Increase	Decrease	Balance as at 30 June 2007 Pro-forma
Accumulated impairment losses on investments (Note 12)	2,565,541	-	-	2,565,541
Accumulated impairment losses on other non current assets	131,445	5,000	-	136,445
Accumulated impairment losses on trade account receivables and other debtors	85,764,579	5,291,610	(4,985,271)	86,070,918
Accumulated impairment losses on inventories	17,664,557	1,373,242	(487,010)	18,550,789
Non current provisions	42,812,924	6,129,529	(1,869,451)	47,073,002
Current provisions	1,156,389	7,131,139	(24,707)	8,262,821
	150,095,435	19,930,520	(7,366,439)	162,659,516

As at 30 June 2008 and 2007 pro-forma and 31 December 2007, Provisions can be analysed as follows:

	30 June 2008	30 June 2007 Pro-forma	31 December 2007
Technical provisions on reinsurance	23,538,815	-	61,137,164
Expenses to be incurred with the sale of the Brazilian subsidiaries	14,477,594	23,116,622	14,628,032
Dismantling of telecommunication sites	19,266,280	17,748,220	18,888,140
Judicial claims	16,791,684	6,119,157	13,505,779
Others	2,855,031	8,351,824	2,120,568
	76,929,404	55,335,823	110,279,683

Amounts included in "Technical provisions of reinsurance" relate to a group captive company that operates in the non-life reinsurance industry. The provision amount can be detailed as follows: 13,275,705 euro (5,650,956 euro as at 31 December 2007) related to provisions for non-acquired insurance premiums and 10,263,110 euro (55,486,208 euro as at 31 December 2007) related to provisions for claims outstanding. The amount to be recovered from reinsurance companies is recorded in the caption "Reinsurer's' share of technical provisions" (Note 13).

Impairment losses are deducted from the book value of the corresponding asset.

25. CONTINGENT ASSETS AND LIABILITIES

As at 30 June 2008 and 31 December 2007, major contingent liabilities were guarantees given are as follows:

	30 June 2008	31 December 2007
Guarantees given:
on tax claims	133,095,162	92,198,572
on judicial claims	1,962,798	1,907,032
on municipal claims	19,323,768	11,687,093
others	72,794,599	71,897,604

The heading Others includes the following guarantees:

• 31,186,807 euro (23,861,474 euro as at 31 December 2007) to guarantee part of the debt of Sonae Sierra affiliates related with the purchase, sale and exchange of land;

• 30,103,294 euro (35,800,646 euro as at 31 December 2007) related to VAT reimbursement requests.

During 2007, a retail segment company in Brazil granted a guarantee of 26,111,620 euro (65,570,840 brazilian real) on a tax claim, which is being judged by tax courts.

As a consequence of the sale of a subsidiary company in Brazil, the Group guaranteed the buyer all the losses incurred by that company arising on unfavourable decisions not open for appeal, concerning tax lawsuits on transactions that took place before the sale date (13 December 2005) and that exceed 40 million euro. As at 31 December 2007, the amount claimed by the Brazilian Tax Authorities concerning the tax lawsuits still in progress, which the company's lawyers assess as having a high probability of loss, amounted to nearly 24 million euro.

Furthermore, there are other tax lawsuits totalling 80 million Euro for which the Board of Directors, based on the lawyers' assessment, understand will not imply losses to the sold subsidiary above the referred 40 million Euro, using the exchange rate of 31 December 2007. During the first semester of 2008 there were no relevant changes in the above mentioned processes.

No provision has been registered to face risks arising from events related to guarantees given, as the Board of Directors considers that no liabilities will result for the Group.

26. RELATED PARTIES

Balances and transactions with related parties are detailed as follows:

		Sales and services rendered			Purchases and services obtained
Transactions	30 June 2008	30 June 2007 Pro-forma	30 June 2007	30 June 2008	30 June 2007 Pro-forma	30 June 2007
Parent company and group companies excluded from consolidation	23,480,456	23,412,496	26,331,184	14,873	46,261	46,261
Jointly controlled companies	7,254,131	7,046,649	17,377,462	8,069,090	7,643,157	8,265,158
Associated companies	923,320	352,423	847,073	5,264,651	2,245,604	9,726,468
Other partners in Group companies	5,376,507	5,156,362	26,284,016	22,306,703	18,956,752	7,868,306
	37,034,414	35,967,930	70,839,735	35,655,317	28,891,774	25,906,193
		Interest income			Interest expenses
Transactions	30 June 2008	30 June 2007 Pro-forma	30 June 2007	30 June 2008	30 June 2007 Pro-forma	30 June 2007
Parent company and group companies excluded from consolidation	-	-	-	-	-	62,860
Jointly controlled companies	12,325	134,449	134,449	-	530,744	569,512
Associated companies	24,282	138,958	3,863	-	-	-
Other partners in Group companies	39,505	3,384,382	45,949	1,418,745	1,637,154	1,324,662
	76,112	3,657,789	184,261	1,418,745	2,167,898	1,957,034

		Accounts receivable	Accounts payable
Balances	30 June 2008	31 December 2007	30 June 2008	31 December 2007
Parent company and group companies excluded from consolidation	10,178,582	11,915,663	17,554	18,659
Jointly controlled companies	3,647,196	2,744,092	3,459,707	5,300,970
Associated companies	2,387,166	1,856,039	1,174,914	2,231,505
Other partners in Group companies	4,074,714	5,787,280	16,760,574	28,092,208
	20,287,658	22,303,074	21,412,749	35,643,342
			Loans
		Obtained		Granted
Balances	30 June 2008	31 December 2007	30 June 2008	31 December 2007
Parent company and group companies excluded from consolidation	-	-	-	-
Jointly controlled companies	-	-	-	63,427
Associated companies	-	-	-	-
Other partners in Group companies	10,039,204	44,297,395	20,112	15,475
	10,039,204	44,297,395	20,112

The caption "Other partners in Group companies" includes Sonae Industria, SGPS, SA and Sonae Capital, SGPS, SA affiliated, associated and jointly controlled companies and also other shareholders of affiliated companies or jointly controlled companies of Sonae Group, as well as other affiliated companies of the parent company Efanor Investimentos, SGPS, SA.

27. INCOME TAX

As at 30 June 2008, 2007 and 2007 pro-forma, Income tax is detailed as follows:

	30 June 2008	30 June 2007 Pro-forma		30 June 2007
Current tax	8,806,829	9,446,629	11,934,739
Deferred tax	(8,628,110)	32,856,242	28,599,394
	178,719	42,302,871	40,534,133

28. RECONCILIATION OF CONSOLIDATED NET PROFIT

As at 30 June 2008, 2007 pro forma and 2007, the reconciliation of consolidated net profit can be analysed as follows:

	30 June 2008	30 June 2007 Pro-forma	30 June 2007
Aggregate net profit	421,144,785	1,011,329,317	956,478,732
Use of the proportionate method	(80,872,901)	(299,141,005)	(299,141,005)
Harmonisation adjustments	99,774,524	(51,689,114)	(56,326,068)
Elimination of intragroup dividends	(437,785,340)	(192,728,807)	(199,573,798)
Elimination of intragroup capital gains and losses	1,217,095	(312,411,561)	(316,337,684)
Elimination of intragroup provisions	4,573,720	-	(1,430,000)
Consolidation adjustments to gains/(losses)	1,649,695	(14,706,237)	52,675,778
on sales of investments
Others	211,891	(1,694,991)	4,863,916
Consolidated net profit for the period	9,913,469	138,957,602	141,209,871

29. EARNINGS PER SHARE

Earnings per share for the period were calculated taking into consideration the following amounts:

	30 June 2008		30 June 2007 Pro-forma		30 June 2007
	2nd Quarter	Total	2nd Quarter	Total	2nd Quarter	Total
Net profit Net profit taken into consideration to calculate basic earnings per share (consolidated profit for the period)	12,077,476	24,218,043	89,553,437	100,366,258	87,333,269	102,006,054
Effect of dilutive potential shares Interest related to convertible bonds (net of tax)	- -		- -		- -
Net profit taken into consideration to calculate diluted earnings per share	12,077,476	24,218,043	89,553,437	100,366,258	87,333,269	102,006,054
Number of shares Weighted average number of shares used to calculated basic earnings per share Effect of dilutive potential ordinary shares from	1,867,200,000	1,867,200,000	1,866,704,534	1,866,642,981	1,866,704,534	1,866,642,981
convertible bonds	-		-		-
Weighted average number of shares used to calculated diluted earnings per share	1,867,200,000	1,867,200,000	1,866,704,534	1,866,642,981	1,866,704,534	1,866,642,981
Earnings per share (basic and diluted)	0.006468	0.012970	0.047974	0.053768	0.046785	0.054647

There are no convertible instruments on Sonae, SGPS shares, hence there is no dilutive effects.

30. DIVIDENDS

In the Shareholders Annual General Meeting held on 21 April 2008, the payment of a gross dividend of 0.03 euro per share (0.03 euro per share in 2007) corresponding to a total of 60,000,000 euro (55,997,442.84 euro in 2007) was approved. On 21 April 2008 the amount related with dividends attributable to the shares underlying the derivative mentioned in Note 17 amounted to 3,984,000 euro. This amount was credited in equity.

31 SEGMENT INFORMATION

In 2008 and 2007, the following were identified as business segments:

• Retail
• Shopping Centres
• Telecommunications
• Holding and Others

The contribution of the business segments to the income statement for the six months periods ended at 30 June 2008 and 2007 Pro-forma can be detailed as follows:

		30 June 2008
		Shopping		Holding	Consolidation
	Retail	Centres	Telecommunications	and Others	Adjustments	Consolidated
Operating income
Sales	1,813,642,729	-	38,979,029	-	-	1,852,621,758
Services rendered	61,352,105	84,702,439	426,967,276	11,019,629	-	584,041,449
Value created on investment properties	-	(21,663,667)	-	-	-	(21,663,667)
Other operating income	187,574,698	9,693,742	10,744,162	272,169	782,507	209,067,278
	2,062,569,532	72,732,514	476,690,467	11,291,798	782,507	2,624,066,818
Inter-segment income	15,833,824	1,461,544	6,039,712	872,285	(24,207,365)	-
	2,078,403,356	74,194,058	482,730,179	12,164,083	(23,424,858)	2,624,066,818
Operating cash-flow (EBITDA)	126,654,940	22,457,161	73,391,497	(157,804)	(62,365)	222,283,429
Depreciation and amortisation	54,471,344	534,037	75,997,855	214,373	1,849,368	133,066,977
Provisions and impairment losses	2,313,905	2,859,472	6,312,320	-	54,534	11,540,231
Operating profit (EBIT)	70,104,210	19,135,637	(8,770,088)	(400,117)	(1,911,343)	78,158,299
Financial profit/(loss)	(31,446,961)	(21,538,857)	(7,900,131)	(16,704,734)	(4,825)	(77,595,508)
Share of results of associated undertakings	-	-	-	-	1,302,927	1,302,927
Investment income	150,169	7,389,874	-	109,873,210	(109,186,783)	8,226,470
Profit before income tax	38,807,418	4,986,654	(16,670,219)	92,768,359	(109,800,024)	10,092,188
Income tax	425,636	(4,567,649)	4,957,606	(1,023,252)	28,940	(178,719)
Net profit for the period	39,233,054	419,005	(11,712,613)	91,745,107	(109,771,084)	9,913,469
- attributable to equity holders of Sonae						24,218,043
- attributable to minority interests						(14,304,574)

		30 June 2007 Pro-forma
		Shopping		Holding	Consolidation	Consolidated
	Retail	Centres	Telecommunications	and Others	Adjustments	Pro-forma
Operating income
Sales	1,429,984,523	-	34,129,074	-	-	1,464,113,597
Services rendered	60,567,147	67,725,285	373,936,475	5,849,370	-	508,078,277
Value created on investment properties	-	102,773,897	-	-	-	102,773,897
Other operating income	143,294,996	5,705,185	7,655,738	365,274	(2,352,897)	154,668,296
	1,633,846,666	176,204,367	415,721,287	6,214,644	(2,352,897)	2,229,634,067
Inter-segment income	13,219,141	3,505,882	3,022,569	521,856	(20,269,448)	-
	1,647,065,807	179,710,249	418,743,856	6,736,500	(22,622,345)	2,229,634,067
Operating cash-flow (EBITDA)	116,067,599	131,534,269	77,930,897	(2,848,962)	(1,243,945)	321,439,858
Depreciation and amortisation	42,569,302	474,609	67,059,657	213,536	53,536	110,370,640
Provisions and impairment losses	181,530	7,445,052	5,279,304	-	(39)	12,905,847
Operating profit (EBIT)	73,764,252	123,718,761	5,946,569	(3,062,498)	(1,297,440)	199,069,644
Financial profit/(loss)	(17,308,829)	(7,615,683)	(10,916,321)	(13,951,147)	(38,874)	(49,830,854)
Share of results of associated undertakings	-	-	-	-	898,779	898,779
Investment income	(4,650,073)	23,910,706	2,763,388	94,209,482	(85,110,599)	31,122,904
Profit before income tax	51,805,350	140,013,784	(2,206,364)	77,195,837	(85,548,134)	181,260,473
Income tax	(3,261,866)	(36,133,589)	(2,461,319)	(459,630)	13,533	(42,302,871)
Net profit for the period	48,543,484	103,880,195	(4,667,683)	76,736,207	(85,534,601)	138,957,602
- attributable to equity holders of Sonae						100,366,258
- attributable to minority interests						38,591,344

The contribution of the major business segments to the consolidated balance sheets as at 30 June 2008 and 31 December 2007 can be detailed as follows:

		30 June 2008
		Shopping		Holding	Consolidation
	Retail	Centres	Telecommunications	and Others	Adjustments	Consolidated
Fixed assets
Intangible	154,189,127	3,348,569	279,125,720	88,402	(5,668,991)	431,082,827
Tangible	1,724,791,711	1,603,964	535,145,679	1,744,789	9,614,561	2,272,900,704
Investment properties	-	2,126,447,200	-	-	(562,889)	2,125,884,311
Goodwill	-	-	-	-	690,117,724	690,117,724
Investments	43,887,151	15,731,235	7,102,202	43,777,864	(15,204,747)	95,293,705
Deferred tax assets	26,349,074	13,505,211	106,986,289	28,223	(47,585)	146,821,212
Other assets	717,409,915	109,751,723	345,001,132	67,455,634	(19,071,401)	1,220,547,003
Cash, Cash Equivalents and Current Investments	111,732,211	46,118,637	6,928,032	18,235,635	1,485,867	184,500,382
Total assets	2,778,359,189	2,316,506,539	1,280,289,054	131,330,547	660,662,539	7,167,147,868
Non current liabilities
Borrowings	1,255,074,354	903,041,086	373,052,201	497,310,122	(1,340,172)	3,027,137,591
Deferred tax liabilities	45,426,582	305,404,554	708,186	2,999,235	45,052	354,583,609
Other non current liabilities	30,063,376	32,997,499	104,619,370	150,137,086	(6,666,044)	311,151,287
Current liabilities
Borrowings	226,592,085	33,520,917	1,726,753	33,886,571	(13,099)	295,713,227
Other current liabilities	937,671,398	118,709,124	393,510,834	78,760,313	(20,076,344)	1,508,575,325
Total liabilities	2,494,827,795	1,393,673,180	873,617,344	763,093,327	(28,050,607)	5,497,161,039
Total investment	132,751,222	81,340,737	162,103,334	24,965,185	-	401,160,478
Gross Debt	1,481,666,439	936,562,003	374,778,954	531,196,694	(1,353,273)	3,322,850,817
Net Debt	1,369,934,229	890,443,366	367,850,922	512,961,059	(2,839,140)	3,138,350,436

		31 December 2007
		Shopping		Holding	Consolidation
	Retail	Centres	Telecommunications	and Others	Adjustments	Consolidated
Fixed assets
Intangible	154,559,265	3,553,684	192,416,571	118,561	(2,979,937)	347,668,144
Tangible	1,686,690,440	1,176,095	533,165,965	1,391,131	9,643,011	2,232,066,642
Investment properties	-	2,062,673,604	-	-	(544,678)	2,062,128,926
Goodwill	-	-	-	-	683,136,658	683,136,658
Investments	43,887,151	20,359,968	7,102,202	22,861,867	(8,607,391)	85,603,797
Deferred tax assets	27,725,259	12,212,701	101,118,096	37,213	(48,561)	141,044,708
Other assets	626,308,962	77,482,995	320,676,431	78,948,664	39,686,914	1,143,103,966
Cash, Cash Equivalents and Current Investments	125,062,227	34,994,583	83,851,612	101,744,777	818,178	346,471,377
Total assets	2,664,233,304	2,212,453,630	1,238,330,877	205,102,213	721,104,194	7,041,224,218
Non current liabilities
Borrowings	1,106,503,697	836,262,512	391,596,174	497,000,804	(2,246,197)	2,829,116,990
Deferred tax liabilities	43,211,172	299,080,440	284,402	2,416,071	73,109	345,065,194
Other non current liabilities	31,581,199	32,739,640	30,393,470	328,573,323	319,720	423,607,352
Current liabilities
Borrowings	90,935,924	38,433,460	2,550,499	6,411,526	(14,298)	138,317,111
Other current liabilities	1,117,111,379	149,590,790	396,728,752	35,201,242	(11,555,512)	1,687,076,651
Total liabilities	2,389,343,371	1,356,106,842	821,553,297	869,602,966	(13,423,178)	5,423,183,298
Total investment	800,086,030	411,103,512	235,657,425	124,438,780	-	1,571,285,747
Gross Debt	1,197,439,621	874,695,972	394,146,673	503,412,330	(2,260,495)	2,967,434,101
Net Debt	1,072,377,395	839,706,865	310,295,061	401,667,553	(3,084,150)	2,620,962,724

32. COMMITMENTS ASSOCIATED TO "INFORMATION SOCIETY"

Under the agreed terms resulting from the grant of the UMTS License, Sonaecom – Serviços de Comunicações (Optimus at the time) committed to contribute to the promotion and development of a 'Information Society' in Portugal. The total amount of the obligations assumed arose to 274 million euro, part of these commitments (up to 116 million euro), will be realised as agreed between Sonaecom - Serviços de Comunicações and MOPTC, through contributions to the "Initiatives E" project (modem offers, discounts on tariffs, cash contributions, among others, assigned to the widespread use of broadband internet for students and teachers). These contributions are made through an open fund, called 'Fund for the Information Society', established by the three mobile operators with businesses in Portugal. The success of this project, initiated in the end of 2007, was dependent on the beneficiaries' participation to the various initiatives (e-opportunities, e-school and e-teacher) and could have been subject to revision during a period of 12 months, i.e., until June 2008. As at 31 December 2007, it was not possible to estimate in a reliable way the success of this project, and therefore, at that date it was not possible to produce a secure and reliable estimate of the responsibilities to be recognized.

Taking in consideration the success of the project during the first semester of 2008, Sonaecom considered that were in place conditions to produce a reliable estimate of the total responsibilities associated with "Initiatives E" project. The present value of these responsibilities is 89 million euro and the costs incurred in the period amount to 6 million euro. Therefore, such responsibilities were recorded as an increase in the caption "Patent and other similar rights" (Note 9), against an entry in the caption "Other non current liabilities" (Note 21) and "Other current liabilities" (Note 23).

33 SUBSEQUENT EVENTS

Resulting from the acquisition of the exclusive control of Carrefour (Portugal) and according to the terms imposed by the decision of non-opposition by the Portuguese Competition Authority ("Autoridade da Concorrência"), Sonae Distribuição committed to several actions, which included the obligation to dispose assets in the regions of Coimbra and Portimão.

In the fulfilment of those commitments, on the 14th of July 2008, Sonae Distribuição signed with Auchan, a contract for the disposal of Modelo of Eiras and Lagoa, as well as a tangible asset (Land) in Condeixa for which the installation of Modelo, Worten and Modalfa stores was already authorized.

On 22 July 2008, Sonae Distribuição announced the agreement established with RAR Group to join both group's travel operations, Geotur and Star, creating a new company which will be held in equal parts and with joint management. The operation is still waiting decision of non-opposition from the Portuguese Competition Authority ("Autoridade da Concorrência").

On 25 July 2008, Sonae Sierra, SGPS, SA issued a private subscription bond loan, amounted to 75 million euro, unsecured, for 5 years, organized by Caixa - Banco de Investimento.

On 28 July 2008 Sonae Sierra, SGPS, SA has concluded an additional sale of the share capital of SPF - Sierra Portugal Real Estate (SPF) corresponding to 8.3% of its share capital. With this closing, Sonae Sierra's interest in the SPF has decreased to approximately 42%.

On 25 August 2008, Sonae Distribuição, SGPS, SA. announced that has signed an acquisition agreement of Boulanger España – a Spanish retail company, specialized in consumer electronics, for an Enterprise Value of 25 million euros. The transaction involves the acquisition of: (i) a 9 store portfolio, in the main population centres of Spain, with a total of 22,000 m2 of sales area and a turnover of more than 100 million euro; (ii) a logistics warehouse; (iii) 3 licensed projects for near future openings; and (iv) the acquisition of 3 real estate assets, concerning 3 stores under operation with a total of 12.000 m2 of Gross Commercial Area.

34 APPROVAL OF THE FINANCIAL STATEMENTS

The accompanying consolidated financial statements were approved by the Board of Directors and authorized for issue on 26 August 2008.

The Board of Directors

Belmiro de Azevedo

Álvaro Cuervo Garcia

Michel Marie Bon

José Neves Adelino

Duarte Paulo Teixeira de Azevedo

Álvaro Carmona e Costa Portela

Ângelo Gabriel Ribeirinho dos Santos Paupério

Nuno Manuel Moniz Trigoso Jordão

INDIVIDUAL FINANCIAL STATEMENTS

COMPANY BALANCE SHEETS AS AT 30 JUNE 2008 AND 2007 AND AS AT 31 DECEMBER 2007

In case of discrepancies the Portuguese version prevails.) (Translation of individual financial statements originally issued in Portuguese.

(Amounts expressed in euro)

ASSETS	Notes	30.June.2008	30.June.2007	31.December.2007
NON CURRENT ASSETS:
Tangible and intangible assets		92,419	118,957	94,573
Investments	4	2,575,739,131	2,874,038,232	2,567,941,218
Other non current assets	5	1,289,829,182	1,697,538,948	1,086,871,182
Total Non Current Assets		3,865,660,732	4,571,696,137	3,654,906,973
CURRENT ASSETS:
Trade account receivables and other current assets	6	64,205,887	181,502,986	97,569,972
Cash and cash equivalents	7	355,110	196,730,687	88,356,998
Total Current Assets		64,560,997	378,233,673	185,926,970
TOTAL ASSETS		3,930,221,729	4,949,929,810	3,840,833,943
EQUITY AND LIABILITIES
EQUITY:
Share capital	8	2,000,000,000	2,000,000,000	2,000,000,000
Own shares		-	(138,150,363)	-
Reserves and retained earnings		1,281,310,440	1,504,825,553	1,316,594,330
Profit for the six months periods		114,906,936	4,955,378	16,503,135
TOTAL EQUITY		3,396,217,376	3,371,630,568	3,333,097,465
LIABILITIES:
NON CURRENT LIABILITIES:
Loans	9	497,310,122	496,691,486	497,000,804
Total Non Current Liabilities		497,310,122	496,691,486	497,000,804
CURRENT LIABILITIES:
Loans	9	29,000,832	307,303,127	1,660,856
Trade creditors and other current liabilities	10	7,693,399	774,304,629	9,074,818
Total Current Liabilities		36,694,231	1,081,607,756	10,735,674
TOTAL EQUITY AND LIABILITIES		3,930,221,729	4,949,929,810	3,840,833,943

The accompanying notes are part of these financial statements.

COMPANY INCOME STATEMENTS BY NATURE

FOR THE QUARTERS AND SIX MONTHS PERIODS ENDED 30 JUNE 2008 AND 2007

(Translation of individual financial statements originally issued in Portuguese.

In case of discrepancies the Portuguese version prevails.)

(Amounts expressed in euro)

Operational income Services rendered 448,799 982,761 369,737 719,865 Other operational income 38,085 47,105 44,313 312,490 Total operational income 486,884 1,029,866 414,050 1,032,355 Operational expenses External supplies and services (814,453) (1,614,569) (587,483) (1,223,269) Staff costs (1,060,811) (2,184,030) (1,764,195) (3,207,736) Depreciation and amortisation (10,171) (20,341) (22,925) (43,451) Other operational expenses (7,036) (147,013) (135,213) (316,394) Total operational expenses (1,892,471) (3,965,953) (2,509,816) (4,790,850) Operational profit/(loss) (1,405,587) (2,936,087) (2,095,766) (3,758,495) Financial Expenses (7,308,102) (14,435,179) (17,921,306) (35,494,723) Financial Income 18,875,436 37,298,623 22,736,626 46,901,435 Investment income/(loss) 12 - 94,979,579 2,647,114 (2,692,835) Profit before income tax 10,161,747 114,906,936 5,366,668 4,955,382 Income tax - - (4) (4) Profit for the period six months period 10,161,747 114,906,936 5,366,664 4,955,378 Profit/(Loss) per share Basic 13 0.0051 0.0575 0.0029 0.0027 Diluted 13 0.0051 0.0575 0.0029 0.0027	Notes	2nd Quarter 2008 (Unaudited)	30.June.2008	2nd Quarter 2007 (Unaudited)	30.June.2007

The accompanying notes are part of these financial statements.

SONAE, S.G.P.S., S.A.

COMPANY STATEMENTS OF CHANGES IN EQUITY

FOR THE SIX MONTHS PERIODS ENDED 30 JUNE 2008 AND 2007

In case of discrepancies the Portuguese version prevails.) (Translation of individual financial statements originally issued in Portuguese.

(Amounts expressed in euro)

No tes	Sh are Ca ital	Ow n Sh are s	Re d ser ves an Re tain ed Ea rnin	Ne t Pro Los	To tal
	2, 000 000 000 , ,	( 138 044 363 ) , ,	1, 364 273 482 , ,	65 138 044 , ,	3, 29 1, 367 163 ,
	- -	- -	3, 256 902 , -	( 3, 256 902 ) , ( 997 443 ) 55, ,	- ( 997 443 ) 55, ,
14	- -	- -	- 58 353 78 1 , ,	- ( 5, 883 699 ) ,	- 52 470 082 , , 78 94 1, 388
	-	-	, -	4, 955 378 ,	, 4, 955 378 , 106 000
	- 2, 000 000 000 , ,	, ( ) 138 150 363 , ,	- 1, 504 825 553 , ,	- 4, 955 378 ,	( ) , 3, 37 1, 630 568 ,
	2, 000 000 000 , ,	-	1, 316 594 330 , ,	16 503 135 , ,	3, 333 097 465 , ,
	- -	- -	82 5, 157 ( 44 322 022 ) , ,	( 825 157 ) , ( 15, 677 978 ) ,	- ( 60, 000 000 ) ,
14	- - -	- - -	- 8, 212 975 , -	- - -	- 8, 212 975 , -
	-	-	-	114 906 936 , ,	114 906 936 , ,
	-	-	-	-	- 3, 396 217 376 , ,
		p - 2, 000 000 000 , ,	- ( ) 106 000 -	gs 78 94 1, 388 1, 28 1, 310 440 ,	fit/( s) - 114 906 936 , ,

The accompanying notes are part of these financial statements.

COMPANY STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS PERIODS ENDED 30 JUNE 2008 AND 2007

In case of discrepancies the Portuguese version prevails.) (Translation of individual financial statements originally issued in Portuguese.

(Amounts expressed in euro)

OPERATING ACTIVITIES	Notes	30.June.2008	30.June.2007
Net cash flow from/ (used in) operating activities (1)		(3,460,045)	(4,452,303)
INVESTING ACTIVITIES
Cash receipts arising from:
Investments		141,603	247,777,285
Tangible and intangible assets		-	150
Interest and similar income		30,199,254	21,497,823
Dividends		94,979,579	76,848,426
Others		-	400,000
Loans granted		183,676,000	861,241,791
		308,996,436	1,207,765,475
Cash Payments arising from:
Investments		(50,000)	-
Tangible and intangible assets		(4,776)	(66,042)
Loans granted		(346,753,000)	(1,820,401,995)
		(346,807,776)	(1,820,468,037)
Net cash from/ (used in) investing activities (2)		(37,811,340)	(612,702,562)
FINANCING ACTIVITIES
Cash receipts arising from:
Loans obtained		132,200,000	5,181,208,786
		132,200,000	5,181,208,786
Cash Payments arising from:
Loans obtained		(103,200,000)	(4,420,970,400)
Interest and similar charges		(14,083,169)	(20,777,144)
Dividends		(59,986,478)	(55,983,782)
Purchase of own shares		-	(106,000)
		(177,269,647)	(4,497,837,326)
Net cash from/ (used in) financing activities (3)		(45,069,647)	683,371,460
Net increase in cash and cash equivalents (4) = (1) + (2) + (3)		(86,341,032)	66,216,595
Cash and cash equivalents at the beginning of the period		86,696,142	130,514,092
Cash and cash equivalents at the end of the period	7	355,110	196,730,687

The accompanying notes are part of these financial statements.

NOTES TO THE INDIVIDUAL FINANCIAL STATEMENTS

FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2008

(Translation of individual financial statements originally issued in Portuguese. In case of discrepancies the Portuguese version prevails)

(Amounts expressed in euro)

1. INTRODUCTION

SONAE, SGPS, SA ("the Company" or "Sonae"), has its head-office at Lugar do Espido, Via Norte, Apartado 1011, 4470- 909 Maia, Portugal.

2. BASIS OF PREPARATION

Interim financial statements are presented quarterly, in accordance with IAS 34 – "Interim Financial Reporting".

3. PRINCIPAL ACCOUNTING POLICIES

The accounting policies adopted are consistent with those followed in the preparation of annual financial statements for the year ended 31 December 2007.

4. INVESTMENTS

As at 30 June 2008 and 2007 and 31 December 2007 the Company held investments in the following affiliated and associated undertakings:

		30.June.2008
Company	% Held	Carrying	Acquisition	Fair Value
		amount	cost	Reserve
Sonae Distribuição, SGPS, SA (a)	74.98%	1,690,800,661	1,326,729,831	364,070,830
Sonae Sierra SGPS, SA (b)	50.00%	864,377,819	490,113,339	374,264,480
Sonaecom, SGPS, SA	0.01%	50,136	109,495	(59,359)
MDS, SGPS, SA	100.00%	20,000,000	20,000,000	-
Sontel BV (c)	100.00%	100,000	100,000	-
Sonae Investments BV (d)	100.00%	18,151	18,151	-
Others	-	392,364	392,364	-
Total		2,575,739,131	1,837,463,180	738,275,951

		30.June.2007
Company	% Held	Carrying	Acquisition	Fair Value
		amount	cost	Reserve
Sonae Distribuição, SGPS, SA (a)	74.98%	1,690,800,661	1,326,729,831	364,070,830
Sonae Sierra SGPS, SA (b)	50.00%	797,568,420	490,113,339	307,455,081
Sonaecom, SGPS, SA	0.01%	115,880	109,495	6,385
Sonae Capital, SGPS, SA	100.00%	382,638,253	382,638,253	-
Sontel BV (c)	100.00%	100,000	100,000	-
Sonae Investments BV (d)	100.00%	18,151	18,151	-
Others	-	2,796,867	2,796,867	-
Total		2,874,038,232	2,202,505,936	671,532,296

1H08 Individual financial statements

		31.December.2007
Company	% Held	Carrying	Acquisition	Fair Value
		amount	cost	Reserve
Sonae Distribuição, SGPS, SA (a)	74.98%	1,690,800,661	1,326,729,831	364,070,830
Sonae Sierra SGPS, SA (b)	50.00%	856,602,000	490,113,339	366,488,661
Sonaecom, SGPS, SA	0.01%	78,041	109,495	(31,454)
MDS, SGPS, SA	100.00%	20,000,000	20,000,000	-
Sontel BV (c)	100.00%	100,000	100,000	-
Sonae Investments BV (d)	100.00%	18,151	18,151	-
Others	-	342,365	342,365	-
Total		2,567,941,218	1,837,413,181	730,528,037

(a) - Formely Modelo Continente, SGPS, SA. This investment is valued at the price paid in the public tender offer for de-listing occurred in 2006.

(b) - Market value was determined based on an independent valuation as the corresponding period of assets held by this jointly controlled company, after deduction of associated net debt and the share attributable to minority investments, and excluding promote fees and transaction costs.

(c) - Sontel BV owns 53.09% da Sonaecom, SGPS, SA as at 30 June 2008.

(d) - Sonae Investments BV owns 15.93% of Sonae Distribuição, SGPS, SA as at 30 June 2008.

5. OTHER NON CURRENT ASSETS

As at 30 June 2008 and 2007 and 31 December 2007 other non-current assets are detailed as follows:

	30.June.2008	30.June.2007	31.December.2007
Loans granted to group companies	1,289,824,999	1,697,531,743	1,086,866,999
Guarantee deposits	4,183	7,205	4,183
	1,289,829,182	1,697,538,948	1,086,871,182

6. TRADE ACCOUNT RECEIVABLES AND OTHER CURRENT ASSETS

As at 30 June 2008 and 2007 and 31 December 2007 trade account receivables and other current assets are detailed as follows:

	30.June.2008	30.June.2007	31.December.2007
Trade account receivables	578,822	355,970	1,392,495
Group companies	59,042,447	176,133,742	92,609,951
Taxes and contributions receivable	1,914,066	2,022,200	2,066,250
Accrued income and prepayments	1,282,570	2,259,445	521,229
Others	678,717	731,629	737,328
Cash flow hedge derivatives	709,265	-	242,719
	64,205,887	181,502,986	97,569,972

7. CASH AND CASH EQUIVALENTS

As at 30 June 2008 and 2007 and 31 December 2007 cash and cash equivalents are detailed as follows:

	30.June.2008	30.June.2007	31.December.2007
Cash at hand	1,388	2,500	2,500
Bank deposits	353,722	196,728,187	88,354,498
Cash and cash equivalents on the balance sheet	355,110	196,730,687	88,356,998
Bank overdrafts	-	-	1,660,856
Cash and cash equivalents on the cash flow statement	355,110	196,730,687	86,696,142

8. SHARE CAPITAL

As at 30 June 2008 and 2007 and 31 December 2007 share capital consisted of 2,000,000,000 ordinary shares of 1 euro each.

9. LOANS

As at 30 June 2008 and 2007 and 31 December 2007 this caption included the following loans:

	30.June.2008	30.June.2007	31.December.2007
Nominal value of bonds	500,000,000	500,000,000	500,000,000
Up-front fees not yet charged to income statement	(2,689,878)	(3,308,514)	(2,999,196)
Bonds	497,310,122	496,691,486	497,000,804
Non-current loans	497,310,122	496,691,486	497,000,804
Commercial paper (a)	29,000,000	232,500,000	-
Nominal value of Sonae/97 bonds	-	74,819,685	-
Up-front fees not yet charged to income statement	-	(16,558)	-
Bank Overdrafts	-	-	1,660,856
Derivatives	832	-	-
Current loans	29,000,832	307,303,127	1,660,856

(a) Short term commercial paper programme, privately placed, launched on 23 August 2004, valid for a ten year period, which may be extended at the option of the company, with a maximum limit of 350,000,000 euro.

Bonds SONAE / 05 amounting to 100,000,000 euro, repayable after 8 years, in one instalment, on 30 June 2013. Interest rate equals Euribor 6 months plus 0.875%, with interest paid half-yearly.

Bonds Sonae 2006/2011 amounting to 250,000,000 euro, repayable after 5 years, in one instalment, on 10 May 2011. Interest rate equals Euribor 6 months plus 0.65%, with interest paid half-yearly. The company has the option to make whole or partial reimbursements, with no extra cost, on the date of the 6th and 8th coupons.

Bonds Sonae 2007/2014 amounting to 150,000,000 euro, repayable after 7 years, in one instalment, on 11 April 2014. Interest rate equals Euribor 6 months plus 0.6%, with interest paid half-yearly. The company has the option to make whole or partial reimbursements, with no extra cost, on the date of the 10th and 12th coupons.

Maturity of Borrowings

As at 30 June 2008 and 2007 and 31 December 2007 the analysis of the maturity of loans are as follows:

	30.June.2008	30.June.2007	31.December.2007
N+1	29,000,832	307,303,127	1,660,856
N+2	-	-	-
N+3	250,000,000	-	-
N+4	-	250,000,000	250,000,000
N+5	100,000,000	-	-
after N+5	150,000,000	250,000,000	250,000,000

10. TRADE CREDITORS AND OTHER CURRENT LIABILITIES

As at 30 June 2008 and 2007 and 31 December 2007, trade creditors and other current liabilities are detailed as follows:

	30.June.2008	30.June.2007	31.December.2007
Trade creditors	697,036	303,481	476,418
Group companies	-	751,733,801	-
Taxes and contributions payable	108,336	342,604	1,588,469
Accrued expenses	6,812,819	21,875,186	6,828,069
Others	75,208	49,557	181,862
	7,693,399	774,304,629	9,074,818

11. CONTINGENT LIABILITIES

	30.June.2008	31.December.2007
Guarantees given:
on tax claims	1,776,135	1,776,135
on judicial claims	425,965	355,199

12. INVESTMENT INCOME

As at 30 June 2008 and 2007, investment income can be detailed as follows:

	30.June.2008	30.June.2007
Dividends received	94,979,579	76,848,426
Gains/(Losses) on sale of investments	-	(79,541,261)
	94,979,579	(2,692,835)

13. EARNINGS PER SHARE

Earnings per share for the period were calculated taking into consideration the following amounts:

	30.June.2008	30.June.2007
Net profit Net profit taken into consideration to calculate basic earnings per share (Net profit for the period)	114,906,936	4,955,378
Effect of dilutive potential shares	-	-
Interest related to convertible bonds (net of tax)	-	-
Net profit taken into consideration to calculate diluted earnings per share:	114,906,936	4,955,378
Number of shares
Weighted average number of shares used to calculated basic earnings	2,000,000,000	1,866,642,981
Effect of dilutive potential ordinary shares from convertible bonds	-	-
Weighted average number of shares used to calculated diluted earnings per share	2,000,000,000	1,866,642,981
Profit/(Loss) per share (basic and diluted)	0.0575	0.0027

14. CHANGES IN RESERVES

The detail of changes in reserves in the three months ended on 30 June 2008 and 2007 may be summarised as follows:

	30.June.2008	30.June.2007
Fair value reserve	7,747,913	52,470,082
Free reserves	-	5,883,699
Hedging reserve	465,062	-
	8,212,975	58,353,781

15. SUBSEQUENT EVENTS

On 22 August 2008 Sonae SGPS, S.A. subscribed a capital increase in its subsidiary Sonae Investments BV of 549,981,800 euro, increasing its share capital to 2,000,000 euro with a premium of 548,000,000 euro.

On the same date Sonae SGPS, S.A. and Sonae Investments BV subscribed a capital increase in Sontel BV of 191,241,400 euro and 288,658,600 euro, respectively. The share capital of Sontel BV increased to 2,000,000 euro with a premium of 478,000,000 euro. After the mentioned share capital increase Sonae SGPS, S.A. direct holding in Sontel BV is 42.9% and the remaining is owned by Sonae Investments BV.

16. APPROVAL OF THE FINANCIAL STATEMENTS

The accompanying financial statements were approved by the Board of Directors and authorized for issue on 26 August 2008.

17. INFORMATION REQUIRED BY LAW

Decree-Law nr 318/94 art 5 nr 4

In the six months ended 30 June 2008 shareholders' loan contracts were entered into with the following companies:

MDS, SGPS, SA Sonae Investments, BV Sontel, BV

In the six months ended 30 June 2008 short-term loan contracts were entered into with the following companies:

MDS Corretor de Seguros, SA Sonae Distribuição, SGPS, SA Sonaecenter, Serviços, SA

As at 30 June 2008 amounts owed by affiliated undertakings can be summarized as follows:

Loans granted

Companies	Closing Balance
MDS, SGPS, SA	72,690,260
Sonae Investments, BV	1,010,595,699
Sontel, BV	229,229,300
Sonaecenter, Serviços, SA	606,000
	1,313,121,259

As at 30 June 2008 there were no amounts owed to affiliated undertakings.

The Board of Directors

Belmiro de Azevedo

Álvaro Cuervo Garcia

Michel Marie Bon

José Neves Adelino

Duarte Paulo Teixeira de Azevedo

Álvaro Carmona e Costa Portela

Ângelo Gabriel Ribeirinho dos Santos Paupério

Nuno Manuel Moniz Trigoso Jordão

AUDITOR'S LIMITED REVIEW REPORT

LIMITED REVIEW REPORT PREPARED BY THE AUDITOR REGISTERED WITH CMVM ON HALF-YEAR FINANCIAL INFORMATION

(Translation of a report originally issued in Portuguese. In case of discrepancies the Portuguese version prevails)

Introduction

• 1. In accordance with the Securities Market Code, we hereby present our Limited Review Report on the financial information of Sonae, SGPS, S.A. ("Company") for the half-year ended 30 June 2008 included in: the Report of the Board of Directors, the consolidated and individual Balance Sheets (that reflect a total of 7,167,147,868 Euro and 3,930,221,729 Euro, respectively, and a consolidated and individual equity of 1,669,986,829 Euro and 3,396,217,376 Euro respectively, including a consolidated net profit attributable to the Company's equity holders of 24,218,043 Euro and a individual net profit of 114,906,936 Euro), the consolidated and individual Statements of profit and loss, changes in equity and cash flows for the half-year then ended and the related notes.
• 1. The amounts in the consolidated and individual financial statements, as well as the additional financial information, are in accordance with the accounting records of the Company and its subsidiaries.

Responsibilities

• 1. The Company's Board of Directors is responsible for: (i) the preparation of consolidated and individual financial information that present a true and fair view of the financial position of the Company and of the companies included in the consolidation and the consolidated and individual results of their operations, changes in equity and cash flows; (ii) the preparation of historical financial statements in accordance with International Financial Reporting Standards as adopted by the European Union for the purposes of interim financial reporting (IAS 34) and that is complete, true, timely, clear, objective and licit, as required by the Securities Market Code; (iii) the adoption of adequate accounting policies and criteria; (iv) the maintenance of an appropriate internal control system; and (v) informing any significant facts that have influenced their operations, financial position or results.
• 1. Our responsibility is to review the financial information contained in the above mentioned documents, namely verifying that, in all material respects, the information is complete, true, timely, clear, objective and licit, as required by the Securities Market Code, and to issue a moderate assurance, professional and independent report on that financial information based on our work.

Scope

• 1. The objective of our work was to obtain moderate assurance as to whether the above mentioned financial information is free of material misstatement. Our work was performed in accordance with the Auditing Standards issued by the Portuguese Institute of Statutory Auditors, was planned in accordance with that objective, and consisted essentially of enquiries and analytical procedures with the objective of reviewing: (i) the reliability of the assertions included in the financial information; (ii) the adequacy of the accounting principles used, taking into consideration the circumstances and the consistency of their application; (iii) the applicability, or not, of the going concern concept; (iv) the presentation of the financial information; and (v) whether, in all material respects, the consolidated and individual financial information is complete, true, timely, clear, objective and licit as required by the Securities Market Code.
• 1. Our work also included verifying that the consolidated and individual financial information included in the Report of the Board of Directors is consistent with the other above mentioned financial information.
• 1. We believe that our work provides a reasonable basis for issuing the present limited review report on the half-year financial information.

Opinion

1. Based on our work, which was performed with the objective of obtaining moderate assurance, nothing came to our attention that leads us to believe that the consolidated and individual financial information for the half-year ended 30 June 2008 referred to in paragraph 1 above of Sonae, S.G.P.S., S.A. is not exempt from material misstatement that affects its conformity with International Financial Reporting Standards as adopted by the European Union for the purposes of interim financial reporting (IAS 34) and that, in terms of the definitions included in the Auditing Standards referred to in paragraph 5 above, it is not complete, true, timely, clear, objective and licit.

Porto, 26 August 2008

DELOITTE & ASSOCIADOS, SROC, S.A. Represented by Luís Augusto Gonçalves Magalhães

SAFE HARBOUR

This document may contain forward-looking information and statements, based on management's current expectations or beliefs. Forward-looking statements are statements that are not historical facts.

These forward-looking statements are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including, but not limited to, changes in economic conditions and the effects of competition. orward-looking statements may be identified by words such as "believes," "expects," "anticipates," "projects," "intends," "should," "seeks," "estimates," "future" or similar expressions.

Although these statements reflect our current expectations, which we believe are reasonable, investors and analysts are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. You are cautioned not to put undue reliance on any forward-looking information or statements. We do not undertake any obligation to update any forward-looking information or statements.

Report available in Sonae SGPS's institutional website www.sonae.pt

Media and Investor Contacts

Rita Barrocas Communication Manager rfbarrocas@sonae.pt Tel: 351 22 940 1705

Patrícia Mendes Investor Relations Manager patricia.mendes@sonae.pt Tel.: 351 22 010 4794

Sonae SGPS, SA Lugar do Espido Via Norte 4471-909 Maia Portugal Tel.:+351 22 9487522 Fax: +351 22 940 4634

Sonae SGPS is listed on the Euronext Stock Exchange. Information may be accessed on Reuters under the symbol SONP.IN and on Bloomberg under the symbol SONPL.