HEMARAJ NET PROFIT INCREASES 62% FOR FIRST HALF OF 2008

Hemaraj Land And Development Public Company Limited announced its operating and financial results for Quarter 2, 2008 and year to date as summarized below.

Quarter 2’2008 and 6 months of 2008 Net Income

For Quarter 2’2008, Hemaraj reported Total Net Income of Baht 360.1 million, or an increase of 26% compared with the same period of last year. Net Income attributable to normal Operating Earnings were Baht 386.9 million, or an increase of 50% compared with the same period of last year. The increase of Net Income from Operating Business for Quarter 2’2008 included a lower tax compared to the prior year.

For the first 6 months of 2008, Hemaraj reported Total Net Income of Baht 876.1 million, or an increase of 62% compared with the same period of 2007. This was due to the first 6 months of 2008 included dividends and profit from associated companies of Baht 62.8 million, the reversal of specific tax and transfer fee accruals of Baht 248.2 million from previous quarters due to lower transfer costs, and a lower income tax compared to the prior year.

David Nardone, President and CEO of Hemaraj Land And Development Public Company Limited had the following comments on the company’s performance.

“Hemaraj finished the first half of 2008 with Total Net income of Baht 876 million, an increase of 62%. Total Revenue was Baht 2,719.6 million compared with Baht 2,420.0 million for the same period of 2007, representing a 12% increase. As we anticipated lower residential revenue early in 2008 (7% of operating revenue) compared to 2007 (51% of operating revenue), this has been replaced entirely with growth from our broad revenue base of industrial estates, utilities, and property.

We are also pleased with the market leading level of industrial estates sales with 934 rai (374 acres) recorded in the first half of 2008. Suzuki Motors, and other leading companies, selected Hemaraj industrial estates with 31 contracts, 15 new customers and 16 project expansions from existing customers to date in 2008. Infrastructure investment and industrial cluster opportunities are driving automotive, petrochemical, and other industrial sector investment in Thailand, particularly at Hemaraj’s “Detroit of the East” automotive cluster in the Eastern Seaboard. Including the results to date in 2008, we see continued revenue growth opportunities and we are again revising upwards our 2008 Industrial Estate Sales forecast from 1,300 rai (520 acres) budget to a revised forecast of 1,700 rai (680 acres), with further potential upside.

Hemaraj is ideally positioned to increase broadened revenue, to continue to leverage development skills, thus reducing the risk profile of the company, and to optimize predictable returns to shareholders.”

Revenue and Results of Operations for 6 Months of 2008

For the first 6 months of 2008, Hemaraj’s Total Revenue was Baht 2,719.6 million compared with Baht 2,420.0 million for the same period of 2007, representing a 12% increase. Total Operating Revenue from core businesses were Baht 2,425.1 million, a 2% increase from the same period of 2007. Industrial Estate Land Sales for the first 6 months of 2008 including Profit from Associated Industrial Estate were Baht 1,490.7 million, or a 188% increase. There is an additional Baht 1,200 million in deferred revenue from Industrial Estate Land Sales not recognized to date, based on the percent completion method from 3 industrial estate new phase developments and representing sales that will be recognized primarily over the next 6 to 18 months.

Total Utilities Revenue including industrial estate utilities, profit/dividend from power/utilities associates, and other utilities & services fees increased to Baht 458 million, an increase of 16%. Total Rent Revenue including SME factory rental, piperack rental, and commercial office rental increased to Baht 170.6 million, an increase of 47%. Sale of Property including SME factory sales, residential sales and other land/property sales decreased to Baht 305.8 million from Baht 1,344.7 million, a 77% decrease due to residential prior year percent completion.

The Gross Profit was Baht 1,085.8 million, a 6% increase from the same period of last year. Earning Before Interest Tax Depreciation and Amortization (EBITDA) were Baht 932.4 million, an increase of 12%. The Gross Profit Margin and EBITDA Margin improved to 45% and 38%, respectively.

Significant Activities for the first 6 months of 2008
 -  Industrial Estate Sales were 934 rai (374 acres) with 31 contracts, 15 new customers and 16 project expansions from existing customers. Total industrial customers are now 382 distinct new customers with 555 contracts and 126 automotive customers representing some $ 14 billion of customer investment.
 -  Suzuki Motors purchased 412 rai (165 acres) at Hemaraj Eastern Seaboard Industrial Estate.
 -  13 New SME Factories contracts signed with 10 factories rented and 3 factory sold.

 -  Hemaraj paid Baht 0.04 per share final dividend for 2007 bringing the total dividend for 2007 to Baht 0.07 per share.
 -  TRIS upgraded the company rating of Hemaraj to “A-/Stable from BBB+/Stable”

Balance Sheet Highlights at 30th June 2008

At 30th June 2008 Hemaraj reported Total Assets of Baht 14,102 million, Total Liabilities of Baht 5,947 million and Total Shareholders Equity of Baht 8,155 million. The Net Debt to Equity ratio improved to 0.56 to 1, despite investment activities. Cash on Hand was Baht 1,393 million.


For further information concerning Hemaraj Land And Development Plc., please visit our website at www.hemaraj.com or www.theparkresidence.co.th or contact by email at invest@hemaraj.com
Mr. Paopitaya Smutrakalin, Director, Investor Relations
Hemaraj Land And Development Plc.
18/F UM Tower, 9 Ramkhamhaeng RoadSuanluang, Bangkok 10250, Thailand
Tel: 662-719-9555 to 9 Fax: 662-719-9546 to 7