IGD Immobiliare Grande Distribuzione SiiQ SpA

PRESS RELEASE

IGD SIIQ SPA: THE BOARD OF DIRECTORS APPROVES THE HALF-YEAR FINANCIAL REPORT AT 30 JUNE 2011 The consolidated results in the first half of 2011 show further growth (vs. the first half of 2010): · Total operating revenue: 61.7 million (an increase of 9.9% with respect to the 56.2 million recorded at 30 June 2010) · · · · · · · · Revenue from core business : 60 million (an increase of 6.8% with respect to the 56.2 million reported at 30 June 2010) Core business EBITDA: 43.6 million (an increase of 9.1% with respect to the 40 million reported at 30 June 2010) Core business EBITDA MARGIN: 72.7% (a rise of 1.5 percentage points when compared to the 71.2% recorded at 30 June 2010) EBIT: 56.2 million (an increase of 73.8% with respect to the 32.3 million recorded at 30 June 2010) The Group's portion of net profit for the period amounts to 30.2 million (an increase of 115.2% with respect to the 14 million posted at 30 June 2010) Funds From Operations (FFO): 22.8 million (+3.7% with respect to 30 June 2010) Net financial debt: 1.073 billion (versus 1.017 billion at 31 December 2010) Market Value: 1,893.66 million (versus 1,803.98 million at 31 December 2010)
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Bologna, 25 August 2011. Today, in a meeting chaired by Gilberto Coffari, the Board of Directors of IGD Immobiliare Grande Distribuzione SIIQ S.p.A. ("IGD" or the "Company"), a company active in the retail real estate sector and listed on the Star segment of the Italian Stock Exchange examined and approved the Half-Year Financial Report at 30 June 2011 which shows consolidated net profit of 30.2 million (+115.2% with respect to 30 June 2010).

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Please note that the Company, in order to highlight its core business, separated it from the "Porta a Mare" operation in Livorno which generated its first revenue in first quarter 2011 thanks to the sale of several office units.

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Operating income statement at 30 June 2011
CONSOLI DATED
/000 1H 2010 Rev enues from freehold properties Rev enues from leasehold properties Rev enues from services Rev enues from trading 49,782 4,094 2,296 0

1H 2011
53,158 4,238 2,588 1,726

%
6.8% 3.5% 12.7% n.a.

1H 2010

CORE BUSINESS 1H 2011
49,782 4,094 2,296 0 53,158 4,238 2,588 0

%
6.8% 3.5% 12.7% n.a.

"PORTA A MARE" P ROJECT 1H 2010 1H 2011 %
0 0 0 0 0 0 0 1,726 n.a. n.a. n.a. n.a.

Re ve nue s
Direc t costs Pers onnel expense Cos t of sales and other costs

56,172
(9,706) (1,634) 141

61,710
(10,117) (1,718) (1,034)

9.9%
4.2% 5.1% n.a.

56,172
(9,603) (1,634) 0

59,984
(10,069) (1,718) 0

6.8%
4.8% 5.1% n.a.

0
(103) 0 141

1,726
(48) 0 (1,034)

n. a .
(53.3)% n.a. n.a.

Gross Margin
G &A expenses Headquarter personnel costs

44,973
(2,310) (2,723)

48,841
(2,036) (2,750)

8.6%
(11.9)% 1.0%

44,935
(2,217) (2,713)

48,197
(1,829) (2,731)

7.3%
-17.5% 0.7%

38
(93) (10)

644
(207) (19)

n. a .
n.a. 93.7%

EBI TDA
Eb i tda M a r gi n Depr ec iation Dev aluation Change in FV Other provisions

39,940
(431) (2,907) (4,167) (100)

44,055
(484) (140) 12,776 0

10.3%
12.2% (95.2)% (406.6)% (100.0)%

40,005
71.2% - 9976.2% (431) (2,907) (4,167)

43,637
72.7%

9.1%

(65)
n.a . 0 (0) 0 0

418
24.2% 0 ( 6) 0 0

n. a .
n.a. 2651.05% n.a. n.a.

0 (100.00)% (479) (140) 10.97% (95.18)%

12,776 (406.60)%

EBI T
Financ ial income Financ ial charges

32,335
2,350 (19,154)

56,207
397 (20,667)

73.8%
(83.1)% 7.9%

32,400
2,348 (18,990)

55,795
397 (20,396)

72.21% n.a.
(83.11)% 7.40%

(65)
2 (163)

413 (732.38)% n.a.
0 (270) (90.88)% 65.48%

Ne t Financial Income Incom e form equity investments Pre -ta x income
Inc ome tax for the period Ta x rate

(16,804) 0 15,531
(1,522) 9.8%

(20,270) (633) 35,304
(5,092) 14.4%

20.6% n. a . n. a . 127.3%
234.5%

(16,643) 0 15,758
(1,557)

(20,000)

20.17%

(161) 0 (227)
36

(270) 0

67.35% n. a .

(633) ####### 35,163 123.14%
(5,043) 223.80%

143 (162.98)%
(49) (235.81)%

NET PROFIT
(prof it)/los s es related to third

14,009
22

30,212
(19)

115.7%
(189.9)%

14,200
22

30,120 112.10%
( 18) (185.27)%

(190) (190)

94 (149.17)% 94 (149.17)%

NET GROUP PROFIT

14,031

30,193

115.2%

14,222

30,101 111.65%

N.B.: Certain cost and revenue items have been reclassified or offset which explains the difference with respect to the financial statements. Bank fees, in particular, were reclassified under "financial income/(charges)".

Principal consolidated results for first half 2011 The IGD Group's revenue from core business at 30 June 2011 amounted to 60 million, an increase of 6.8% with respect to the 56.2 million posted in first half 2010. More in detail, rental income in first half 2011 increased by 6.5% thanks to the pre-letting of new spaces and contract renewals, as well as the adjustment of rents for inflation, the new openings made in 2010 and the new acquisitions made in the first part of 2011. Revenue from services rose by 12.7% due to the mandates granted for the management of newly opened and third party centers. The IGD Group's total operating revenue at 30 June 2011, therefore, amounted to 61.7 million, an increase of 9.9% with respect to the 56.2 million posted in the first half of the prior year.

The IGD Group's EBITDA from core business at 30 June 2011 amounted to 43.6 million, an increase of 9.1% with respect to the 40 million recorded at 30 June 2010. More in detail, in first half 2011 the margin from freehold properties increased 6.9%, from leasehold properties 18%, while the margin from services rose by 17% with respect to first half 2010. Total EBITDA in first half 2011 reached 44 million, an increase of 10.3% with respect to the 39.9 million posted in first half 2010.

Direct costs, pertaining to the core business and including direct personnel expenses, at 30 June 2011 amounted to 11.8 million, an increase of 4.9% with respect to the same period in the prior year. These costs represent 19.6% of core business revenue. General expenses for the core business, including payroll costs,

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amounted to 4.6 million at 30 June 2011, a drop of 7.5% These costs represent 7.60% of operating revenue, a marked improvement with respect to the same period in the prior year. EBITDA margin for the core business reached 72.7%, an increase of 1.5 pp with respect to the 71.2% reported in first half 2010. structure. The growth confirms the solid operating trend and the stability of the cost

The IGD Group's EBIT at 30 June 2011 amounted to 56.2 million, an increase of 73.8% compared to the 32.3 million reported at 30 June 2010. This result benefited from the positive trend in EBITDA and confirms the quality and solidity of the Group's real estate portfolio. The IGD Group's pre-tax profit in first half 2011 rose 127.3% from the 15.5 million reported at 30 June 2010 to 35.3 million.

The IGD Group's tax burden, current and deferred, at 30 June 2011 amounted to 5 million, reflecting a tax rate of 14.4% compared to 9.80% in the same period of the prior year. The increase is primarily attributable to the increase in fair value.

The Group's portion of net profit at 30 June 2011 amounted to 30.2 million, an increase of 115.2% with respect to the 14.03 million reported in first half 2010.

The Funds from Operations (FFO) , a significant indicator used in the real estate market to define the cash flow from a company's operations based on net profit, net of current tax, writedowns, fair value, amortization and depreciation, rose from 22 million at 30 June 2010 to approximately 22.8 million at 30 June 2011, an increase of 3.7%.

The IGD Group's net debt at 30 June 2011 amounted to 1.073 billion, compared to 1.017 billion at 31 December 2010.

At 30 June 2011 the gearing ratio (debt to equity ratio) came in at 1.37, compared to 1.31 at 31 December 2010.

The Real Estate Portfolio at 30 June 2011 Based on CB Richard Ellis's and Reag's independent appraisals, the market value at 30 June 2011 of the Igd Group's real estate portfolio reached 1,893.66 million, compared to 1,803.98 million at 31 December 2010. In the first half of the year the hypermarket found in the Coné Shopping Center in Conegliano Veneto, where IGD already owns the shopping mall, as well as a retail property (City Center Project) on Via Rizzoli in the historic heart of Bologna in via Rizzoli and a portion of an office building in Bologna of which IGD already owns the lower floors and where its headquarters are located, were added to the portfolio.

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Claudio Albertini, Chief Executive Officer of IGD - Immobiliare Grande Distribuzione SIIQ S.p.A. stated: "The results achieved in first half 2011 confirm, once again, the validity of the strategies we have adopted to reach our economic-financial targets and the capacity of our rental contracts to generate steady, visible revenue streams over time. The quality and the profitability of our real estate assets also finds confirmation in the appraisals issued by the independent experts at 30 June which were positive for the first time in three years". "In a very uncertain and volatile environment - Albertini continued - IGD can count on a solid asset structure and a revenue base which are able to both fuel and sustain cash generation. For this reason we look ahead at our future commitments, in terms of both our ability to move forward with our investment pipeline and provide our shareholders with interesting returns, as serenely as ever."

Grazia Margherita Piolanti, IGD S.p.A.'s Financial Reporting Officer, declares pursuant to para. 2, article 154-bis of the of Legislative Decree n. 58/1998 (("Testo Unico della Finanza" or TUF) that the information reported in this press release corresponds to the underlying records, ledgers and accounting entries. Please note that in addition to the standard financial indicators provided for as per the IFRS, alternative performance indicators are also provided (for example, EBITDA) in order to allow for a better evaluation of the operating performance. These indicators are calculated in accordance with standard market procedures.

The Half-Year Financial Report at 30 June 2011 will be made available to the general public at the company's registered office and at Borsa Italiana S.p.A. and will also be made available in the Investor Relations section of the company's website www.gruppoigd.it in accordance with the law.

IGD - Immobiliare Grande Distribuzione SIIQ S.p.A.
Immobiliare Grande Distribuzione SIIQ S.p.A. is the main player in Italy's retail real estate market: it develops and manages shopping centers throughout the country and has a significant presence in Romanian retail distribution. Listed on the Star Segment of the Italian Stock Exchange, IGD was the first SIIQ (Società di Investimento Immobiliare Quotata or real estate investment trust) in Italy. IGD has a real estate portfolio valued at 1,894 million at 30 June 2011, comprised of, in Italy, 18 hypermarkets and supermarkets, 19 shopping malls and retail parks, 1 city center, 3 plots of land for development, 1 property held for trading and an additional 6 real estate properties. Following the acquisition of the company Winmark Magazine SA in 2008 15 shopping centers and an office building, found in 13 different Romanian cities, were added to the portfolio. An extensive domestic presence, a solid financial structure, the ability to plan, monitor and manage all phases of a center's life cycle: these qualities summarize IGD's strong points. www.gruppoigd.it
CONTACTS INVESTOR RELATIONS CLAUDIA CONTARINI Investor Relations +39 051 509213 claudia.contarini@gruppoigd.it ELISA ZANICHELI IR Assistant +39 051 509242 elisa.zanicheli@gruppoigd.it CONTACTS MEDIA RELATIONS IMAGE BUILDING Simona Raffaelli, Alfredo Mele, Valentina Bergamelli +39 02 89011300 igd@imagebuilding.it

The press release is available on the website www.gruppoigd.it, in the Investor Relations section, and on the website www.imagebuilding.it, in the Press Room section.

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Please find attached the IGD Group's consolidated income statement, statement of financial position, statement of cash flows and net financial position at 30 June 2011.


Consolidated income statement at 30 June 2011
30/06/2011 ( /000) Re ve nue : - from third parties - from related parties Othe r incom e : - other income - from related parties Re ve nue from property sales Total revenue and operating incom e Change in w or k in progress inventory Total revenue and change in inventory Cos t of w or k in progress Mater ial and service costs - third parties - related parties Cos t of labour Other operating costs Total operating costs ( Depr ec iation, amortization and provisions) ( Impair ment losses)/Reversals on w ork in progress and goodw ill Change in fair value - increases / (decreases) Total depreciation, am or t iz at ion, provisions, im pair m e nt and change in fair value EBIT Incom e /( los s ) from equity investm e nt s Inc ome/( los s ) from equity investments Financial incom e : - third parties - related parties Financial charges: - third parties - related parties Ne t financial incom e (charges) PRE- TAX PROFIT Inc ome taxes NET PROFIT FOR THE PERIOD Minor ity interests in net (profit)/loss Par e nt Com pany's portion of net profit - basic earnings per share - diluted earnings per share (A ) 57,349 41,597 15,752 5,715 5,082 633 1,726 64,790 3,416 68,206 4,411 11,705 10,018 1,687 3,899 2,759 22,774 (1,939) (140) 12,776 10,697 30/06/2010 ( B) 53,699 38,375 15,324 5,831 5,528 303 0 59,530 1,971 61,501 1,830 12,350 10,814 1,536 3,826 2,700 20,706 (1,449) (2,907) (4,167) (8,523) Change ( A -B) 3,650 3,222 428 ( 116) ( 446) 330 1,726 5,260 1,445 6,705 2,581 ( 645) ( 796) 151 73 59 2,068 ( 490) 2,767 16,943 19,220

56,129 (633) (633) 397 380 17 20,589 20,247 342 ( 20,192) 35,304 5,092 30,212 ( 19) 30,193 0.101 0.096

32,272 0 0 2,350 2,339 11 19,091 18,684 407 ( 16,741) 15,531 1,522 14,009 22 14,031 0.047 0.053

23,857 ( 633) ( 633) ( 1,953) ( 1,959) 6 1,498 1,563 ( 65) ( 3,451) 19,773 3,570 16,203 ( 41) 16,162


Consolidated balance sheet and financial position at 30 June 2011
30/06/2011 (/000) NON-CURRENT ASSETS Intangible assets - Intangible assets w ith finite useful lives - Goodw ill Pr ope r t y, plant, and equipm e nt - Investment property - Buildings - Plant and machinery - Equipment and other assets - Leasehold improvements - Assets under construction Ot he r non-current assets - Deferred tax assets - Sundry receivables and other non-current assets - Non-current financial assets TOTAL NON-CURRENT ASSETS (A) CURRENT ASSETS: Work in progress inventory and advances Inv entory Trade and other receivables Related party trade and other receivables Other current assets Related party financial receivables and other current financial assets Financ ial receivables and other current financial assets Cas h and cash equivalents TOTAL CURRENT ASSETS (B) TOTAL ASSETS (A + B) NET EQUITY: Portion pertaining to the Parent Company Portion pertaining to minorities TOTAL NET EQUITY (C) NON-CURRENT LIABILITIES: Non- c urrent financial liabilities Related party non-current financial liabilities Prov is ion for employee severance indemnities Def erred tax liabilities Prov is ions for risks and future charges Sundr y payables and other non-current liabilities Related party sundry payables and other non-current liabilities TOTAL NON-CURRENT LIABILITIES (D) CURRENT LIABILITIES: Cur rent financial liabilities Related party current financial liabilities Trade and other payables Related party trade and other payables Cur rent tax liabilities Other current liabilities Related party other current liabilities TOTAL CURRENT LIABILITIES (E) TOTAL LIABILITIES (F=D + E) TOTAL NET EQUITY AND LIABILITIES (C + F) 227,819 25,325 12,165 3,432 9,776 5,109 14 283,640 1,216,021 2,001,662 187,336 4,127 15,733 4,924 8,266 6,911 14 227,311 1,173,477 1,946,931 40,483 21,198 ( 3,568) ( 1,492) 1,510 ( 1,802) 0 56,329 42,544 54,731 843,340 15,000 664 52,355 1,662 7,401 11,959 932,381 854,374 15,000 612 48,910 1,645 13,687 11,938 946,166 ( 11,034) 0 52 3,445 17 ( 6,286) 21 ( 13,785) 773,771 11,870 785,641 761,603 11,851 773,454 12,168 19 12,187 67,390 8 13,107 1,056 20,382 660 27,511 5,386 135,500 2,001,662 64,289 7 12,265 714 43,812 1,091 6,001 32,264 160,443 1,946,931 3,101 1 842 342 ( 23,430) ( 431) 21,510 ( 26,878) ( 24,943) 54,731 10,518 3,238 4,905 18,661 1,866,162 13,104 4,581 4,399 22,084 1,786,488 ( 2,586) ( 1,343) 506 ( 3,423) 79,674 1,741,240 7,620 1,526 2,131 1,551 81,918 1,835,986 1,666,630 7,668 1,130 1,549 1,640 74,291 1,752,908 74,610 ( 48) 396 582 ( 89) 7,627 83,078 88 11,427 11,515 69 11,427 11,496 19 0 19 (A ) 31/12/2010 (B) Change (A -B)


Consolidated statement of cash flows at 30 June 2011
30/06/201 1 30/ 06/ 201 0

(/000)
C A SH FLOW FROM OP ER A T IN G A C T IVIT IES: N e t pro f i t f o r t h e ye a r A d j u s t m e n t s t o re c o n c i l e ne t pro f i t wit h c a s h f l o w ge n e r a t e d ( a b s o r b e d ) by o p e r a t i n g a c t i v i t i e s : C apit al gains/ (lo s s es ) and o t her no n-m o net ary items D eprec iat io n, amo rt izat io n and pro v is io ns (Im pairm ent )/ rev ers al o f assets under co ns t ruc t io n and go o dwill N et change in (deferred tax assets)/pro v is io n fo r deferred tax liabilities C hange in fair value o f investment pro pert y C hange in invento ry N et change in current assets and liabilities N et change in current assets and liabilities with related parties N et change in no n-c urrent assets and liabilities N et change in no n-c urrent assets and liabilities with related parties C A S H F LO W F R O M O P E R A T I N G A C T IV IT I E S ( a ) (Inv es t m ent s ) in fixed assets D is po s als o f fixed assets D iv es t m ent s in subsidiaries (Equit y investments) in subsidiaries C A S H F L O W F R O M IN V E S T I N G A C T I V I T I E S ( b ) C hange in no n-c urrent financial assets C hange in financial receivables and o t her current financial assets C hange in financial receivables and o t her current financial assets with related parties C hange in translatio n reserve P aym ent o f dividends C hange in current debt C hange in current debt with related parties C hange in no n-c urrent debt C hange in no n-c urrent debt with related parties C A S H F LO W F R O M F IN A N C IN G A C T I V IT IE S ( c ) N E T IN C R E A S E ( D E C R E A S E ) IN C A S H B A L A N C E C A S H B A LA N C E A T B E G IN N IN G O F Y E A R C A S H B A LA N C E A T E N D O F Y E A R ( 7 0 ,9 4 0 ) 0 (21469) , 431 1 8 (22,370) 40,504 211 8 ,9 (7,895) 0 10 , 4 17 ( 2 6 ,8 7 8 ) 3 2 ,2 6 4 5 ,3 8 6 ( 1, 9 4 3 ) 0 (24,250) (2,278) (66) (1 ,91 ) 44 (1 2) 2 (21 ) 0 (1 ,248) 2 0 ( 5 4 ,0 8 7 ) ( 2 1, 2 4 2 ) 3 5 ,8 5 6 14 , 6 14 2,048 1939 , 10 4 4,663 (1 ,776) 2 (3,1 2) 0 1 ,208 7 (1834) , (4,874) 21 3 3 ,6 4 5 (72,279) 1339 , 791 1449 , 2,907 12 2 4,1 7 6 (1970) , 1 ,724 7 1078 , (5,853) 364 3 4 ,7 8 8 (22,790) 7,727 1 ,1 0 32 3 0 , 2 12 14 , 0 0 9


Consolidated net debt at 30 June 2011
NET DEBT 30/06/2011 Cas h and cash equivalents Financ ial receivables and other current financial assets w . related parties Financ ial receivables and other current financial assets L IQUIDIT Y Cur r ent financial liabilities w . related parties Cur r ent financial liabilities Mor tgage loans - current portion Leas ing ­ current portion Conv er tible bond loan - current portion CURRENT DEBT CURRENT NET DEBT Non- c ur r ent financial assets Der iv ativ es - assets Non- c ur r ent financial liabilities due to other sources of finance Leas ing ­ non-current portion Non- c ur r ent financial liabilities Non- c ur r ent financial liabilities w . related parties Conv er tible bond loan Der iv ativ es - liabilities NON- CURRENT NET DEBT NET DEBT ( 5,386) (660) ( 27,511) ( 33,557) 25,325 179,236 46,181 2,358 44 253,144 219,587 ( 20) ( 4,885) 21,886 6,133 584,152 15,000 216,988 14,181 853,435 1,073,022 31/12/2010 ( 32,264) ( 1,091) ( 6,001) ( 39,356) 4,127 137,591 48,431 1,248 66 191,463 152,107 ( 19) ( 4,380) 21,497 7,863 590,707 15,000 214,642 19,665 864,975 1,017,082

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