Consolidated Earnings After Taxes of EUR 19.9 mn for the FY 2008

ATHENS, Greece - NAV Increase by 16%

PASAL Development S.A. announces that consolidated earnings
after taxes and minority interests for the year ended 31.12.2008 amounted to
19.9 mn euro compared to 8.9 mn euro for the year ended 31.12.2007.

Earnings before interest, taxes, depreciation and amortization
(EBITDA) amounted to 26.6 mn euros compared to 15.8 mn euros in FY 2007,
while consolidated earnings before taxes amounted to 23.6 mn euros compared
to 13.5 mn euros the respective period of last year. The earnings increase is
mainly due to the completion of the AthensHeart shopping mall at Piraeus
Str., as well as of the logistics center in Elefsina.

The net asset value before deferred taxation (NAV) on
31.12.2008 amounted to 121.5 mn euros (8.1 euro/share) versus 103.8 mn euros
(6.9 euro/share) in 31.12.2008 succeeding an increase of 17.1%, while
respectively the net asset value after deferred taxation (triple net NAV)
amounted to 101 mn euros (6.75 euro/share) versus 87.3 mn euros in 31.12.2007
which is an increase of 15.8%.

The company’s net debt (debt minus cash & cash equivalents) at
the 2008 year end amounted to 134.6 mn euros, including a loan of 29.5 mn
euros for the acquisition of the 37% stake in TRASTOR REIC (ex Piraeus REIC).
The loan to value ratio (LTV) at 31.12.2008 is calculated to 50%. The value
of the company investment property assets at 31.12.2008 reached 220.2 mn
euros against 125.3 mn euros the same period last year.

Under the prime objective of the investment plan strengthening
for the 2009 fiscal year, the Management will propose to the Annual General
Assembly of the shareholders the non distribution of dividend from the public
listed parent company.

The most significant investments underway refer to:

- The shopping centre in Athens (Alimou Av.). The construction
works of the lettable area are complete. The total space exceeds 4,000
sq.m. together with 80 underground parking spaces. The shopping centre
is expected to be fully operational within this year.

- The company is taking into consideration the expansion of the
AthensHeart shopping mall towards adjacent land plots already owned.

- Commercial development in Chalkida (suburban area of Athens) in an 80
sq.m land plot.

PASAL continues the implementation of its business plan,
taking into account the current financial conditions and at the same time
pursuing the emergence of new investment opportunities in Greece and abroad.

The brief financial information for the period ended on December 31st
2008 will be published in the Kathimerini & Naftemporiki newspapers on 18th
of March 2009, while the full year financial statements will be posted on the
company’s website (www.pasal.gr) the same day.

The objective of PASAL Development, listed on the Athens Stock
Exhange since 2008, is the development and utilization of real estate
properties.

The company’s policy is to invest in properties intended for
commercial use (big-box, malls and retail parks), logistics centres, office
buildings and properties intended for residential use as a second home. The
company’s expanded portfolio includes, among others, commercial properties in
several stages of development. The company aims to develop and materialize
leading and high value-added projects in Greece and in South - Eastern
Europe.

About Pasal Development, please visit www.pasal.gr.

For more information please contact the Corporate Announcements &
Shareholders Services’ DPT of PASAL Development, Mrs Jenny Stavrinou,
+30-210-69-67-600, or email: j.stavrinou@pasal.gr

Source: PASAL DEVELOPMENT S.A.

For more information please contact the Corporate Announcements & Shareholders Services’ DPT of PASAL Development, Mrs Jenny Stavrinou, +30-210-69-67-600, or email: j.stavrinou at pasal.gr