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SAO PAULO, Brazil, Aug. 7 /PRNewswire-FirstCall/ -- The estimated value of Sao Carlos' real estate portfolio increased by 63.8%, from R$961.6 million in June 2007 to R$1,574.9 million in June 2008.

The Average Vacancy Rate decreased to 3.6% by the end of June 2008, from 5.2% by the end of June 2007 and from 4.9% by the end of March 2008.

Net Revenue grew 39.9% against 2Q07, reaching R$34.1 million in 2Q08, and grew 35.1% versus 1H07, reaching R$62.4 million in 1H08, driven mainly by the lease of the Eldorado Business Tower.

EBITDA grew 36.4% versus 2Q07, reaching R$27.5 million or 80.9% of Net Revenue (vs. 83.0% in 2Q07), and grew 26.8% versus 1H07, reaching R$51.2 million or 82.0% of Net Revenue (vs. 87.3% in 1H07).

Funds from Operations (FFO) in 2Q08 was R$9.4 million (with a 27.7% margin), down 42.4% year on year. FFO in 1H08 was R$20.4 million (with a 32.7% margin), down 40.0% against 1H07.

Net Operating Income (NOI) in the quarter rose 30.8% in comparison to 2Q07, totaling R$30.5 million or 89.5% of Net Revenue (vs. 95.7% in 2Q07). 1H08 NOI grew 30.2% compared to 1H07, totaling R$57.4 million, or 91.9% of Net Revenues in the period (vs. 95.4% in 1H07).

Net Income reached R$3.4 million in 2Q08, a 73.4% decrease in comparison to 2Q07 (R$12.8 million) and R$9.8 million in 1H08, down 63.6% compared to 1H07 (R$27.0 million). The decline reflects mainly the lower financial result of the company, due to the lower average balance of investments and the higher indebtedness level.

Sao Carlos ended 2Q08 with net debt of R$447.0 million, versus R$396.5 million at the end of 1Q08, mainly reflecting the disbursements made under the stock buyback program, among other factors.

For the full earnings release, please access our website: http://www.scsa.com.br/ir and watch our conference calls on the 1Q08 results:

  English
  August 8, 2008
  11:00 a.m. US EST
  12:00 p.m. Brasilia Time
  Phone: (1 800) 860-2442 (U.S only)
         (1 412) 858-4600 (other countries)
  Code: Sao Carlos
  Replay: (1 877) 344-7529 (U.S only)
          (1 412) 317-0088 (other countries)
  Code: 6036#1