IRSA Inversiones y Representaciones Sociedad Anonima Announces Results for the First Nine Months Fiscal Year 2011 Ended March 31, 2011

BUENOS AIRES, Argentina, May 12, 2011 /PRNewswire/ -- 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 2011 Ended March 31, 2011.

HIGHLIGHTS

Revenues and EBITDA from the rental segments increased 23% and 25%, respectively, during the first 9 months of this fiscal year. They account for 75% of IRSA's Revenues and 89% of its EBITDA.

The performance of these segments was partially offset by lower revenues from the Consumer Financing segment derived from the sale of 80% of Tarshop S.A. in September 2010 and lower results from the Sales and Development segment which had recorded a positive impact in the previous year resulting from higher sales of non-strategic office assets.

All this led to an increase in revenues of 6% to Ps. 1,013.4 million and a 5% increase in EBITDA to Ps. 539.5 million for the first nine months of this fiscal year.

The Shopping Center segment continues to exhibit a sound performance, with an increase in Sales of 29%, EBITDA/Sales margins at 78% and occupancy levels higher than 97%.

Hotel operations have shown a firm recovery during the first nine months of this fiscal year, with an occupancy rate higher than 76% and an increase in EBITDA of 26%.

The real estate market looks robust. Market prices for residential and office properties have increased significantly, favorably impacting on our portfolio of land reserves, developments and offices.

As a result of partial sales of our interest in Hersha Hospitality Trust, in which we hold an equity interest above 9%, we recognized a gain of more than USD 10 million in this fiscal year.

Net income was Ps. 223.2 million compared to Ps. 299.7 million in the same period of the previous fiscal year due to increased financial charges and lower income from Banco Hipotecario S.A.

Our Board of Directors has called a General Shareholders' Meeting scheduled for May 26, in order to deal with the position to adopt at the Shareholders' Meeting called by Alto Palermo S.A. that will consider an increase in its capital stock. In addition, it will consider the approval of a dividend payment.

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 First Nine Months Fiscal Year 2011 Results Conference Call on Tuesday, May 17, 2011 at 11:00 a.m. Eastern Time

To participate, please call:

800-314-6696 If you are in the US or

+1-706-758-8485 for international calls

To access the webcast, click on the link below:

http://webcast.mz-ir.com/publico.aspx?codplataforma=2838

SOURCE IRSA Inversiones y Representaciones Sociedad Anonima