Investor relations

Subject:
Preparation of a forecast of results of operations for the year ending 31 December 2008.

Report's text:
Acting pursuant to Article 5.1(25) of the Ordinance of the Minister of Finance on ad hoc and periodical reporting by issuers of securities dated 19 October 2005 (Journal of Laws [Dz.U.] of 2005, No. 209, item 1744), J.W. Construction Holding S.A., with its seat in Ząbki, Poland (henceforth “the Company”) hereby reports that, on 8 January 2008, it prepared a forecast of the Company’s consolidated results of operations for the year ending 31 December 2008 and makes this forecast available to the public.

The forecast results of operations for the year ending 31 December 2008 (on a consolidated basis) are as follows:
Sales PLN 1,085.4 million
Profit from sales PLN 345.7 million
Operating profit PLN 295.5 million
Profit before tax PLN 278.2 million
Net profit for the year PLN 219.7 million

The forecast period:
The forecast is for the financial year 2008, i.e. the period from 1 January 2008 to 31 December 2008.

The basis of preparation and principal assumptions for the forecast:
The forecast results of operations of the Issuer are based on the revenue and cost budgets for the Issuer’s development and construction projects and construction project schedules. The Issuer’s ability to achieve the forecast results will depend on the following factors: (i) obtaining relevant administrative decisions (permits) by dates envisaged in the Issuer’s investment project schedules; (ii) property market demand and apartment prices; (iii) prices of construction materials and construction subcontractor market trends; (iv) maintaining the target profitability of investment projects; (v) progressing according to schedule.

Monitoring of actual vs. forecast results:
Achievement of the forecast results of operations for the year ending 31 December 2008 will be monitored by means of on-going review of the Company’s results of operations and progress of investment projects (chiefly based on the Company’s internal data). Review findings will be summarized on a quarterly basis.

Intervals at which the Company intends to assess the likelihood of achieving the forecast results of operations:
The Company will be assessing the likelihood of achieving the forecast results of operations for the year ending 31 December 2008 on a quarterly basis. Any change in any element of this forecast of results of operations (of 10 per cent or more) will be communicated to the public as a revised ad hoc report forecast.