OREANDA-NEWS  On 02 October was announced, that XXI Century Investments Public Limited, Ukraine's leading real estate investment, development and property management company, reported its interim results for the six months ended 30 June 2008.

Financial Highlights

Revenue increased by 136% to USD 14.4 million (June 2007: USD 6.1 million) due to the sale of residential bonds (representing residential sales) and an increase in rental income to USD 6.36 million from USD 2.62 million during the same period last year

Fair value of investment property, as appraised by Jones Lang LaSalle, increased by approximately 6.3% to USD 2.18 billion for the period (December 2007: USD 2.05 billion)

Profit before tax fell resulting in a loss of USD 74.48 million for the six months ended 30 June 2008 (June 2007: USD 1.02 billion profit) due to a decrease in revaluation by USD 65.96 million (June 2007: an increase of USD  1.04 billion)

Selling, general and administrative expenses increased by 83% to USD 14.27 million (June 2007: USD  7.8 million) primarily due to legal and professional services expenses related to Eurobond and other capital raising activities, as well as advisory fees in connection with potential partnership arrangements

Net asset value increased by 2% to USD 1.86 billion (December 2007: USD 1.82 billion)

Operational Highlights
 
Opening of Kvadrat-Perova shopping centre on 30 April:

the first hypermarket gallery format shopping and entertainment complex that XXI Century has developed and the largest shopping centre by GLA on the left bank in Kyiv's high density residential area;

subsequently awarded 'Best Project of the Year' by the First National Commercial Property Awards in Kyiv.

Construction permits received for Lviv mixed-use site and for the first stage of Sevastopol mixed-use site, the permit for the latter being received three months ahead of schedule.

Successful receipt of concept approvals:

from Kyiv City Council for Berezneva mixed-use, Brovarskyi business centre and the Voznesenskyi Yar residential projects;

from Poltava and Cherkasy City Councils for mixed-use projects in their cities.

Outlook and Revised Strategy

In view of the continued uncertainty and volatility in global capital and financial markets and its impact on the real estate sector specifically, the Board has revised the Company's strategy;

The Company's key objectives in the near term are to maximise liquidity through an assertive cost-cutting program which involves reducing overheads and administrative expenses as well as selling non-core assets, exiting non-core businesses and attracting investors and partners for its projects and systemic businesses;

XXI Century will focus on three core business segments - retail, high-end residential, and offices;

Mr Lev Partskhaladze, Chairman of the Board and CEO, commented:

"In the immediate and short term, we will concentrate on improving liquidity and generating cash by refocusing the Company's business model which involves reducing overheads and administrative expenses as well divesting non-core assets, and soliciting partners and investors for other projects. Whilst market conditions are challenging, Directors and management believe that the Company's new strategy and short term initiatives will ensure that the Company capitalizes on its core strengths and maintains its competitive position in the Ukrainian real estate market."

The Report and Consolidated Financial Statements of the Company for the six months ended 30 June 2008 is available in full on the Company's website: www.21.com.ua.