IRSA Inversiones y Representaciones Sociedad Anonima Announces Results for the First Nine Months Fiscal Year 2009 Ended March 31, 2009

BUENOS AIRES, Argentina, May 12 /PRNewswire-FirstCall/ -- IRSA Inversiones y Representaciones Sociedad Anonima (NYSE: IRS; BASE: IRSA), the leading real estate company in Argentina, announces its results for the First Nine Months Fiscal Year 2009, ended March 31, 2009.

HIGHLIGHTS

-- IRSA's results for the first nine months mainly reflect the impact of the financial market's volatility on the consumer finance business, on the financial results derived from fluctuations in the exchange rate applied for valuing our stock of debt, and on the results from our related company Banco Hipotecario S.A. caused by the lower valuation of its financial asset portfolio. The real estate operating segments remained healthy during the first nine months of the fiscal year, showing good cash generation levels.

-- A comparison of the first 9 months of FY09 with the same period of FY08 reveals a 0.4% increase in revenues and a 37.8% decrease in operating income, mainly due to losses in the consumer finance segment. Revenues and operating income excluding the consumer finance segment increased by 6.6% and 22.1% respectively

-- The performance of IRSA's various segments in terms of net sales was: Sales and development decreased by 21.7% to Ps.137.1 million; Offices and other rental properties rose by 46.1% to Ps.106.6 million; Shopping centers rose by 12.5% to Ps.283.6 million; Hotels rose by 10.5% to Ps.127.1 million; Consumer finance decreased by 17.4% to Ps.175.7 million; whereas Financial transactions and Other income posted income for Ps.1.8 million

-- Shopping DOT BAIRES (previously referred to as Panamerican Mall or PAMSA project) is opening its doors to the public tomorrow, May 13, after a two-year construction period and with its occupancy rate above 94%. It will be the largest Shopping Center in the city of Buenos Aires, with unique design features and a location in what can be described as "the gateway to the city of Buenos Aires": the intersection of Avenida General Paz and the Panamericana highway. This shopping mall will host more than 50,000 square meters of gross leasable area distributed among a hypermarket and more than 150 stores that include an anchor store, a gym, a movie-theater complex and a food court.

-- Regarding the office rental segment, we have agreed on the lease of the 8 office stories at Edificio Dique IV in Puerto Madero, recently added to our portfolio. In addition, we have continued selling offices considered to be non-core assets for US$ 17.2 million during the first nine months of FY 2009, a figure that increased by US$ 34.8 million during the month of April. This will allow us to re-focus on pursuing potential business opportunities arising from the new market scenario

-- Regarding the consumer finance business, the third quarter of FY09 has shown a substantial reduction in operating losses in contrast to those experienced in the immediately preceding quarters as a consequence of improved capitalization combined with relative stabilization in local financial markets, decreased loan loss charges and decreased operating expenses.

    Nine Months Fiscal Year 2009 Financial Highlights
    (In thousands of Argentine Pesos)
    Ended March 31, 2009

                                          03-31-09      03-31-08
    Total sales                            831,960       828,477
    Operating Income                       139,216       223,662
    Net Loss                              (106,177)       22,879
    Net Income per Ordinary Share           -0.183         0.042

                                          03-31-09      06-30-08
    Total Current Assets                   675,042       893,842
    Total Non Current Assets             3,844,015     3,578,130
    Total Assets                         4,519,057     4,471,972
    Short-Term debt                        327,595       187,234
    Total Current Liabilities              804,293       742,267
    Long-term debt                       1,131,350     1,119,726
    Total Non Current Liabilities        1,433,682     1,348,812
    Total Liabilities                    2,237,975     2,091,079
    Minority interest                      448,114       456,715
    Shareholders' Equity                 1,832,968     1,924,178

IRSA Inversiones y Representaciones S.A. (NYSE: IRS; BASE: IRSA) is Argentina's largest, most well-diversified real estate company, and it is the only company in the industry whose shares are listed on both the Bolsa de Comercio de Buenos Aires and The New York Stock Exchange. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. The company also develops residential subdivisions and apartments (specializing in high-rises and loft-style conversions) and owns three luxury hotels. Its solid, diversified portfolio of properties has established the Company as the leader in the sector in which it participates, making it the best vehicle to access the Argentine real estate market. Additionally, IRSA owns a stake in Banco Hipotecario, Argentina's largest mortgage supplier in the country.

A LONGER VERSION OF THIS PRESS RELEASE WITH DETAILED INFORMATION IS AVAILABLE ON THE WEB SITE: WWW.IRSA.COM.AR

IRSA cordially invites you to participate in its nine months period ended March 31, of Fiscal Year 2009 Results Conference Call

    Friday, May 15, 2009 at 1:00 p.m. Eastern Time
    To participate, please call:
    +1-877-860-4996 if you are in the U.S. or
    +1-404-665-9583 for international calls

To access the webcast, click on the link below: http://www.videonewswire.com/event.asp?id=59022

Investor Relations Department

IRSA Inversiones y Representaciones S.A.

ir@irsa.com.ar

SOURCE IRSA Inversiones y Representaciones Sociedad Anonima