(Pasay City, Philippines. 06 May 2008) SM Prime Holdings, Inc., the country’s leading shopping mall developer and operator, attained a 7% increase in net income of Php1.6 billion for the first quarter of 2008. EBITDA increased 9% to Php2.7 billion during the period, for an EBITDA margin of 72%.

Gross revenues, on the other hand, increased by 8% to Php3.8 billion, largely due to expanded rental revenues brought in by three new malls opened in 2007 namely, SM City Bacolod, SM City Taytay, and SM Supercenter Muntinlupa.

For the first quarter of 2008, rental revenues from all the malls, which accounted for 85% of total revenues, grew 10% to Php3.3 billion. Same store rental growth was at 5% despite the on-going redevelopment plan in SM Megamall and SM North Edsa.

Meanwhile, as expected on account of the new mall openings last year, operating expenses increased by 6% to Php1.6 billion. In spite of this, however, operating income grew by 9% to Php2.2 billion during the period mainly due to cost saving measures implemented in the malls.

SM Prime President Mr. Hans T. Sy said, ”SM Prime continued to exhibit growth in the first quarter amid a more challenging environment, as we stay focused on making SM malls an exciting place to shop, dine and spend time with family and friends. As such, we are moving ahead with our expansion program as planned.”