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Hemaraj Sees double Growth in 2006
  Hemaraj Sees double Growth in 2006

3rd March 2006

Thailand’s leading developer of industrial estates Hemaraj Land And Development Plc., recorded a 20% increase in Operating
Profit, outperforming industry averages in many key areas and providing a solid base for double growth in 2006.

David Nardone, President and CEO of Hemaraj announced net income of Baht 583.7 million from operating business in 2005, an increase of 20% from 2004 and total net income of Baht 637 million. Operating revenue increased by 21% to 2,930.4 million baht with total revenues at 3,009.9 million baht. The Gross Profit margin of the year was at 41% while the EBITDA Margin was 29%,
both levels exceeding industry margins.

“We are benefiting from the growth in automobile and petrochemical industries.

Broadening the property development strategy at Hemaraj has enabled us to
increase revenue predictability, profitability, and maintain ongoing strength in the balance sheet. The bottom line contributions from The Park Chidlom are
improving the profitability and leverage of Hemaraj. Our broadened revenue
growth strategy continues to be on target, with revenue for 2006 doubling over Baht 6,000 million is on track”, said David.

In 2005, Industrial Land Sales were 716 rai with 51 contracts, being 23 new
customers as well as 28 projects expansion from existing customers bringing
total industrial customers to 312 with 103 automotive customers. SME Factory for Rent and Sale area increased by 22%, or 24,000 sq.m. In 2005, a total of 20 SME Factory contracts were signed: 13 rented and 7 sold. Industrial estate utilities consumption quantities increased modestly. Year-end sales of The Park Chidlom were 158 units or 72% sold with total contract value more than Baht 4 billion.

Business expansion activities in 2005 include the joint venture in S I L Industrial Land (Saraburi) with The Siam Cement Group, and the joint venture in
“Glow Hemaraj Energy” with “Glow Energy (Suez)” to develop and enter the
next round of IPP bidding.

For the year 2006, Hemaraj is developing 1,700 rai at Hemaraj Eastern Seaboard Industrial Estate Phase 1, expanding Hemaraj Eastern Industrial Estate further, opening a Free Zone in SIL Industrial Land (Saraburi) for electronics and others transferring The Park Chidlom. We also plan to pursue Utility and Power
opportunities.

He also stresses that revenue growth will be from all Hemaraj business lines.
Industrial land sales for 2006 is targeted at 1,000 rai, or a 40% increase from
2005 indicated by the continual flow of Foreign Direct Investment to 2006 Thailand, especially in automotive, petrochemical and electronics industries.
SME Factories rental and sold area are projected to grow 30% year on year basis. Industrial estates utilities projected to grow 25% as many chemical
customers start their operation this year.

The year 2006 will see the completion and transfer (on schedule) of The Park Chidlom. As of February 2006, 78% of total units were sold and the cumulative contract value reached over Baht 4.35 billion.

Hemaraj Land And Development Plc. is Thailand’s leading developer of
industrial estates, utilities, property, and infrastructure customer. Founded in
1988 and listed on the Stock Exchange of Thailand in 1992, today Hemaraj has assets of approximately Baht 9,000 million (USD 225 million)


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