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Hitt og þetta 12. september 2006

2006 Mid-year Report: Strong increase in Jelmoli Group operating cash flow and profit

Jelmoli Group operating cash flow (EBITDA) of CHF 98.6 million for the first half of 2006 exceeded the prior midyear level by CHF 12.5 million or 14.5%. New highs were set both for EBITDA and for Group net profit at CHF 53.8 million.

Group key figures (consolidated, unaudited)

Change First half-year (in million CHF) 2006 2005 in % in Mio. CHF Turnover 494.3 496.1 -0.4% comparable +1.1% Rental income 68.0 65.4 +4.0% (incl. from own retail locations) comparable +3.3% Operating cashflow EBITDA 98.6 86.1 +14.5% +12.5 Operating income EBIT 96.7 68.9 +40.3% +27.8 Impairment on Tivona - -50.0 participation Financial income -27.6 -26.6 Earnings before tax EBT 69.1 -7.7 Tax -15.1 -9.2 Net profit 54.0 -16.9 of which Jelmoli shareholders 53.8 -17.5 (Group net profit) of which minorities 0.2 0.6

The retail trade segment cost reduction measures introduced in the second half of 2005 brought a marked rise in operating income for the first half of 2006. EBITDA margins in retail trade rose by 1.7 percentage points to 9.7 percent.

Real estate rental income rose by CHF 2.6 million to CHF 68.0 million. There were no development gains for the first half of 2006 because no large projects were completed.

Group financial income Financial income for the first half year shows excess expenditure of CHF -27.6 million (as against CHF -76.6 million per mid-year 2005). While financial costs have increased somewhat due to long-term refinancing, the prior year period was heavily affected above all by impairment loss on the Tivona AG participation.

Group net profit Group net profit rose overall by CHF 71.3 million to CHF 53.8 million. Even without taking account of impairment loss on the Tivona participation in the first half of 2005, this represents a 65.5% increase compared with the prior year period.

Year-end outlook: Significantly higher operating income and Group net profit expected Since the cost reduction measures already brought some improvements in the second half of 2005, their effect will flatten off in the second semester this year.

A significant increase in operating income and Group net profit is expected for 2006 as a whole.

Jelmoli Holding Ltd Walter Fust, Chairman of the Board Gustav Stenbolt, President of the Executive Committee Retail Trade

Change First half-year (in million CHF) 2006 2005 in % in Mio. CHF Turnover Jelmoli Zurich (incl. Molino/Fashion Bazaars/ 110.9 123.8 -10.4% Beach Mountain) comparable +1.8% Turnover Dipl. Ing. Fust 383.4 372.3 +3.0% comparable +0.8% Total Group turnover 494.3 496.1 -0.4% comparable +1.1% Operating cashflow EBITDA 48.6 39.9 +21.8% -8.7 Depreciation -12.4 -13.6 +1.2 Badwill on acquisition +4.5 - +4.5 Operating income EBIT 40.7 26.3 +54.8% +14.4

Significantly higher operating income Jelmoli Zurich turnover (including Specialty Businesses) on a comparable sales floor area was 1.8% higher than in the prior year period. Dipl. Ing. Fust AG turnover increased to CHF 383.4 million, 3 percent higher than per mid-year 2005.

The cost optimization measures already introduced by Jelmoli and Fust in the second half of 2005 are now taking full effect. Overall operating cash flow (EBITDA) has risen by 21.8% to a new record level of CHF 48.6 million. Operating income EBIT rose by 54.8% to CHF 40.7 million.

Year-end forecast In view of the improving consumer demand on one hand, and the cost structure optimizations on the other, we look to the second half of 2006 with optimism.

Jelmoli Zurich (The House of Brands) Overall turnover at the Jelmoli Zurich shopping gallery (including external tenants) rose again by 2.0% to CHF 148.0 million. The transfer to external tenants of about 10% of total sales floor area at Jelmoli Zurich (including Gourmet-Factory on the ground floor and "New Yorker" on the second floor) since autumn 2005 resulted in a 10.4% turnover decline. However, the associated cost reductions resulted in a significant increase in operating income.

Year-end forecast The cost reduction program in the logistics and administration areas already brought some improvements in the second half of 2005. We expect nevertheless a further increase in operating profit for 2006 as a whole.

Dipl. Ing. Fust AG Fust turnover for the first half-year 2006 rose above all in multimedia business, due to excellent TV and Home Cinema sales prior to the World football championships. Thanks also to the Eschenmoser acquisition per June 1, 2006, overall turnover increased by 3.0% (comparable: +0.8%).

The reduction of advertising and personnel expenses compared with last year's unusually high level, together with other cost saving measures and more direct-imports, brought a further rise in operating income despite the ongoing margin pressure.

Year-end forecast Summer turnover for hot July and August is again significantly higher than in prior year. If market conditions remain the same, we also expect a marked rise in operating income for 2006 as a whole. Real Estate

Change First half-year (in million CHF) 2006 2005 in % in Mio. CHF Total rental income 68.0 65.4 +4.0% comparable +3.3% Operating cashflow EBITDA 50.0 46.2 +8.2% +3.8 Depreciation -0.7 -0.6 -0.1 Value appreciation to IAS40 - 2.7 -2.7 Badwill on acquisition +10.5 - +10.5 Operating income EBIT 59.8 48.3 +23.8% +11.5%

Most rental agreements are on a fixed long-term basis (with extension options). A fixed minimum rental clause appropriate to top-location level secures real estate income against a decline, while the turnover-linked rent allows participation in phases of economic upswing and inflation.

Increased rental income by 4.0% to CHF 68.0 million The temporary missing of rental income from properties in Thônex (Geneva) and on Sihlstrasse Zurich, where extensive reconstruction and new building projects respectively are currently underway, was compensated by rental income from five new properties (in Frauenfeld and from the four Eschenmoser properties acquired).

Thanks to optimization of the rental structure at Jelmoli Zurich, the utilization of previously vacant floor areas, and new rental agreements on a more profitable basis at some of our larger shopping centers, comparable rental income rose by 3.3%.

The properties meanwhile closed or newly acquired were partially self-utilized. Furthermore, the new rental agreements and utilization of previously vacant floor areas mainly concern external tenants. This has increased external rental income by CHF 2.6 million or 5.4%.

Operating cash flow rose out of proportion by 8.2% to CHF 50.0 million thanks to lower extraordinary charges than in prior year. Operating income EBIT increased by 23.8% to CHF 59.8 million.

Year-end forecast Further increases in rental income and operating income are expected for 2006 as a whole. Turnover-linked rentals, which are not calculated until year-end, are also expected to be higher for 2006 than in prior year. Development gains are expected to be lower than in 2005 as apart from the new construction in Lutry, no large projects are due for completion this year.

Further outlook - development pipeline The following projects are to be realized during 2006-2008:

Lutry New building with retail trade floor areas and apartments; scheduled opening year-end 2006.

Zurich-Hiltl Extension of the restaurant and courtyard office floor areas; scheduled opening early 2007

St. Gall Stadium West Shopping Center Including car park building (adjacent to the new IKEA center); scheduled opening early 2008

Oberbüren und Niederwangen Conversion of the present logistics and retail trade floor areas; diverse tenants; scheduled opening 2007/8

Thônex Demolition and new construction of a suburban shopping center with diverse tenants and apartments; scheduled opening 2008

Moscow - Russia Shopping center construction together with the Russian partner "Mosmart" and various other retail trade chains; scheduled opening of the first shopping center in Nizhni Novgorod per early 2007.

Investment volume for these projects totals around CHF 350 million. The commercialization and achievement of the target yields appear realistic at the present time. Various other projects are under assessment with regard to profitability and feasibility.

Attached please find the following information - Consolidated income statement (Group and segments) - Consolidated balance sheet (Group and segments) - Consolidated Statement of Changes in Equity - Group Statement of Cashflow - Group Accounting Principles and Notes

Contact persons for inquiries

Media: Dr. Daniel Gfeller, Secretary General +41 (0)44 220 42 29, Fax +41 (0)44 220 40 10 Analysts: Gustav Stenbolt, President of the Executive Committee Phone +41 (0)44 220 46 34, Fax +41 (0)44 220 40 10 Roland Walder, CFO Phone +41 (0)44 220 44 26, Fax +41 (0)44 220 40 10

Internet: www.jelmoliholding.ch / www.huginonline.ch/JEL WAP-mobile: wap.huginonline.com (Press Releases Jelmoli) E-mail: info@jelmoliholding.ch

--- End of Message --- WKN: 851225; ISIN: CH0000668464; Index: SMCI, SPI, SPIEX; Listed: Main Market in SWX Swiss Exchange;

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