JW Construction Holding - Presentation of Development Plans and Financial Results 2006

1. The investment in reliable foundations J.W. Construction Holding – presentation Poland's largest residential developer Warsaw, October 2007 PREZENTACJA PLANÓW ROZWOJU FIRMY I WYNIKÓW FINANSOWYCH ZA 2006 ROK Warszawa, październik 2007r.

2. Presentation agenda • The Company in the background of the market – structure and positioning • The characteristics of developer activity • The description of essential investments • The characteristics of housing activity • The characteristics of hotel services • The financial standing • Appendix – the analysis of housing market in Poland PRESENTATION of JW Construction Holding – October 2007

3. The Company in the background of the market – structure and positioning PREZENTACJA PLANÓW ROZWOJU FIRMY I WYNIKÓW FINANSOWYCH ZA 2006 ROK PRESENTATION of JW Construction Holding – October 2007

4. Business structure of JWCH Group Activity Activity Activity DEVELOPER HOTEL SERVICES HOUSING • Housing activity carried out to implement the projects in the scope of developer activity and hotel services in the framework of the Group • General Contractor in almost 100% of implemented projects • Expansion of own auxiliary facilities in the scope of construction and transportation machinery • Commencement of the separation of housing activity and its transfer to a subsidiary • HOTELE 500 – network consisting of 5 two – star and three – star hotels in attractive localization • Assets of significant market value • Extension and modernization of the hotel “CZARNY POTOK” in Krynica toupgrade to the category „Resort & SPA” • Expanded “land bank” – new building plots and increasing scale of Company activity • Wide and diversified offer – popular flats, apartment and houses • Leading position in Warsaw market in respect of the largest number of implemented projects • Implementation of projects in other Polish towns with high growth potential i.e. Łódź, Katowice, Gdynia, Szczecin, Łeba

5. JWHC position in comparison with competitors Significant advantage over the remaining competitors on the Warsaw market is on the side of leading developer (J.W. Construction Holding) and the next one in the ranking (DOM Development) Source: Report on Housing Market in Warsaw 2005/ 2006 published by REAS KONSULTING

6. Competition on the housing market The main competitors of JW Construction Holding in particular market segments: • Popular flats segment: Dom Development, Budimex Nieruchomości, Acciona Nieruchomości, Dolcan (Warsaw market), Invest Comfort, Allcon Osiedla (3-City), BRE Locum, Maxbud, Unibud (ŁÓdź), Profit Development, A.S.M Investycje, As Bau, Gant Development (Wrocław) • Increased standard apartments segment: Dom Development, Echo Investment, , Marvipol, Pirelli Pekao Real Estate, Fadesa Prokom (Warsaw market), small entities (all markets) • Single – family houses segment; GTC, Sedno (Warsaw market), large group of small entities (all markets) 6

7. Competitive advantages • Own erection and assembling potential • Highlyrecognized brand • Assets owned by the Company enabling the conclusion of occasional contracts on sales of larger packages of flats with foreign institutional clients • Offer diversification – holiday apartments in Łeba • Complex credit service – flats purchase financing system favourable for the client – long term cooperation with the banks 7

8. Competitive advantages • The first Polish office selling the flats established in United Kingdom • Innovative sales systems 10/90 and 20/80 • Effective costs control • Top standard of client service – short period between the first contact and transaction finalization and professional Sales Department • Professional and stable team as well as wide experience and leading position in the market • ISO systems and implemented SAP system 8

9. Strategic objectives • Extension of “land market” trough the purchase of new building lots on favourable conditions – increase of the scale of activity and further dynamic development of the Company • Consolidation of leader’s position – as the largest housing developer in Warsaw market and vicinity • Expansion to the markets with high growth potential among others Łódź, Katowice, Gdynia, Szczecin, Łeba and abroad (among others Russia and Bulgaria) • Consolidation in the scope of erection and assembling activity - commencement of the process of its separation and transfer to a subsidiary in order to increase the independence of external subcontractors 9

10. Characteristics of developer activity PREZENTACJA PLANÓW ROZWOJU FIRMY I WYNIKÓW FINANSOWYCH ZA 2006 ROK 10 PRESENTATION of JW Construction Holding – October 2007

11. Growth in the scope of developer activity In course of recent months, the Company initiated several activities in order to extend the scale of activity Warsaw market and vicinity • Purchase of new building lots –the area exceeding 40ha in Ożarów Mazowiecki • Consolidation of sales network – opening of new offices selling the apartments • Wide commercial offer in various market segments – flats, apartments and houses Entering into the markets out of Warsaw • Purchase of new building lots out of Warsaw – finalization of building lot purchase in Łeba • Project of the erection of the highest building in Szczecin • Continuation of the investment in Łódź (commencement of 2nd phase of the project) • Commenced housing investment in Katowice • Presence on the market in Gdynia Activity on foreign markets • Implementation of the project in Russia – continuation of the erection of Housing Estate in Kołomna • Establishing of sales office in United Kingdom – promotion and marketing activities • Establishing of cooperation with foreign partners (registration of a subsidiary in Bulgaria) 11

12. Growth in the scope of developer activity • JWC is the developer with the longest activity un Poland – up to the present time the Company constructed 15 599 dwellings (as at the end of September 2007) • The Company significantly increased the scale of its activity • 7 853 dwelling are actually under construction and sale • More than 8 500 dwellings are in course of preparation for the construction 12

13. Growth in the scope of developer activity The land purchase process is continued by the Company – the new building lots have been purchased for attractive prices in Warsaw vicinity in recent months. More than 111 million PLN including more than million PLN obtained from bonds emission have been spent by the Company for land purchase from January 2007 up to 5th October 2007. 13

14. Investment accounting method Conservative method of investment accounting – ZERO METHOD The valuation of projects established by the Company is based on the more conservative “ZERO” method whichequalizes the incurred costs with the revenue obtained in the accounting period under consideration. “ZERO” method is used by JW Construction in the first phase of the project being implemented until the achievement of: • In case of revenue – the progress level must exceed 50% (the value of revenues resulting from signed contracts/ the value of planned revenues) • In case of costs – the progress level must exceed 40% (the value of works determined on the basis of works survey/ budget value) 14

15. Investments in progress The investments under construction and sales – as at the end of September 2007 15

16. Investments planned The investments under construction and sales – construction scheduled on the turn of 2007/2008 * dwellings released for sale – data as at the end of September 2007 16

17. Investments planned The investments planned – data as at the end of September 2007 * Number of dwellings not included in the commercial offer 17

18. Description of essential investments PREZENTACJA PLANÓW ROZWOJU FIRMY I WYNIKÓW FINANSOWYCH ZA 2006 ROK 18 PRESENTATION of JW Construction Holding – October 2007

19. Warsaw market Housing Estate „Górczewska” Secured residential object with service areas and 1410 apartments and parking places under the building. A recreation area and housing estate mall will be provided. 19

20. Warsaw market Housing Estate„Rezydencja na Skarpie” The investment in Bukowińska Street next to two projects implemented before – Mokotów Plaza I and II. Total number of high standard dwellings will amount 261 20

21. Warsaw market Housing Estate „Lazurowa” Housing Estate in Lazurowa Street in vicinity of planned underground station. The project implemented in four phases. Target number of increased standard dwellings will amount 669. 21

22. Warsaw market Housing Estate „Górczewska Park” “Górczewska Park” project consists of 12 multi – family house localized in Górczewska / Olbrachta Street with886 flats and 4 service shops. 22

23. Warsaw market Housing Estate„Ludwinowska Aleja” Secured residential complex consisting of 17 semi – detached four – family houses in Ludwinowska Street in Warsaw with 68 flats with garages and parking places. 23

24. Investments ower the Warsaw Housing Estate „Leśne” The second project implemented in Gdynia in Parkowa Street, surrounded by the forests in Trójmiejski Landscape Park. Secured housing estate consists of 9 four-storey building encompassing 202 residential dwellings 24

25. Foreign investments Housing Estate „Victoria Park” Secured housing estate encompassing 6 multi-family projects implemented in Kołomna Town in vicinity of Moscow (Russia). The project encompasses more than 1100 high standard apartments. The completion of the whole project is expected in 2012. 25

26. The characteristics of housing activity PREZENTACJA PLANÓW ROZWOJU FIRMY I WYNIKÓW FINANSOWYCH ZA 2006 ROK 26 PRESENTATION of JW Construction Holding – October 2007

27. Development of housing activity High potential of own erection and assembling capabilities • JW Construction acts in the majority of projects being implemented as the General Contractor • Permanent staff encompasses 333 skilled labourers • Long term cooperation with experienced contractors • The Company is in the possession of own construction machinery and plants • The Company spent 1,7 million EURO as the investment in the scope of modern construction machinery and plants (concrete batching plants, tractors, dump trucks, excavators – loaders and telescope loaders) • The works associated with launching of construction elements prefabrication 27

28. Separation of housing activity JWC Holding is engaged into the group structure modification commencing the works associated with the separation of housing and designing activity in order to enable further development • On 21st September 2007 two new divisions i.e. “BUDOWNICTWO” responsible for erection and assembling activity and “Pracownia Architektoniczna” responsible for the activity in the scope architecture and engineering were created in the framework of the Company structure • On 26th September 2007 JW Construction SA has been established as 100% subsidiary of JWC Holding – in future the company will continue the economic activity in housing sector after the property transfer • the activity in the scope architecture and engineering concentrated in the division “Pracownia Architektoniczna” has been relocated to the subsidiary Dremet The purpose of the works associated with the separation of housing and designing activity in the subsidiary is to increase the value of the Group 28

29. Separation of housing activity Advantages resulting from the separation of housing segment • Increased transparency of the Group • Possibility to achieve the valuation of the erection and assembling segment and achievement higher financial transparency • Facilitating of the acquisition of the companies from building sector, anticipated in future • Possibility to place the orders out of JWC Holding • Improvement of functioning efficiency of individual companies and increase of their effectiveness by clear determination of competences of individual entities 29

30. The characteristics of hotel services PREZENTACJA PLANÓW ROZWOJU FIRMY I WYNIKÓW FINANSOWYCH ZA 2006 ROK 30 PRESENTATION of JW Construction Holding – October 2007

31. Development of hotel services • Actually JW Construction Group is in the possession of 5 (two – and three – star) hotels localized in Zegrze, Stryków, Cieszyn, Tarnowo Podgórne and Święta Lipka • The offer in the scope of hotel services is addressed mainly to the institutional clients – companies and institutions (conferences, trainings, seminaries) and to individual clients – tourists • In 2005, the Company purchased “Czarny Potok” tourism center in Krynica. Actually its modernization and extension is continued in order to upgrade the object to Resort & SPA category. • The hotel in Strykowo close to Łódź is situated in direct vicinity of highway and hotel in Tarnowo Podgórne in vicinity of international communication route A2 31

32. Financial standing PREZENTACJA PLANÓW ROZWOJU FIRMY I WYNIKÓW FINANSOWYCH ZA 2006 ROK 32 PRESENTATION of JW Construction Holding – October 2007

33. 2006 Legend: Financial prognoses for 2007 Forecast 2007 net profit gross profit on sales EBIT revenue on sales • The forecast of growth in 2007 in comparison with 2006: • revenue on sales by 12% (813.1 million PLN) • gross profit on sales by more than 8% (244.6 million PLN) • profit on operations EBIT (earning before income tax) by almost 11% • net profit by 11% 33

34. Financial results in 2003 – 2007 Gross profit on sales Revenue on sales forecast 2007 forecast 2007 Net profit Profit on operations forecast 2007 forecast 2007 34

35. Profitability • The profits of the Company increased significantly in the period 2004-2006, including EBIDTA from 28.1 million PLN up to 190.8 million PLN • Gross margin on sales increased from 15.3% in 2004 up to 31.1% in 2006 • The economies of scale have been achieved in result of increased scale of activity with maintained control over costs increase. EBITDA margin Net profit margin Gross margin on sales 35

36. Results after two quarters 2007 Gross margin on sales (%) Revenue on sales (million PLN) first half-year 2007 first half-year 2007 first half-year 2006 first half-year 2006 Net profit (million PLN) Profit on operations (million PLN) first half-year 2007 first half-year 2007 first half-year 2006 first half-year 2006 36

37. Increase of sales value Value of signed agreements with clients (million PLN) • The value of agreements signed in the first half-year this year increased by 13% in comparison with the same period in 2006 • The value of agreements signed in the period from January to July 2007 increased by 25% in comparison with the same period in 2006 • The value of apartments sales in 2nd quarter this year increased up to 351.1 million PLN i.e. by 4% in comparison with the same period in 2006 first half-year 2nd quarter 1st quarter Legend: After lower results achieved in 1st quarter, clearly visible acceleration has been achieved in the next three months resulting in satisfactory growth on the end of the half-year. 37

38. Dynamics of financial indices More than 1 billion margin will be obtained on the projects being implemented, which will be reflected in future financial results 38

39. Financing structure Achievement of optimal financing structure • Obtainment of gross revenues over 240 million PLN on new bonds emission for land purchase • Withdrawal from the financing form used before – credit of up to 80% of land purchase price • As a rule, the percentage of projects implemented using the bank credits is not higher than 40% of the whole costs • Possibility of complete use of the bonds emission program in amount of 250 million PLN 39

40. APPENDIX The analysis of housing market in Poland PREZENTACJA PLANÓW ROZWOJU FIRMY I WYNIKÓW FINANSOWYCH ZA 2006 ROK 40 PRESENTATION of JW Construction Holding – October 2007

41. Warsaw The largest developers (in respect of the number of apartments handed over and planned in the period 2005 – 2006) Number of apartments constructed for sales 2000 - 2006 Demand vs. supply in the period 2000 – 2010 Average price of residential dwelling in Warsaw (PLN/m2) Warsaw Supply Demand thousands of units Source: Report on Housing Market in Warsaw 2005/ 2006, 2006/2007 published by REAS KONSULTING. www.tabelaofert.pl GUS

42. Łódź The largest developers (projects completed or planned for construction in the period 2006 – 2007) Number of apartments constructed for sales 2000 - 2007 Demand vs. supply in the period 2000 – 2010 Average price of residential dwelling in ŁÓDŹ (PLN/m2) Supply Demand thousands of units Source: Report on Housing Market in Warsaw, 2006/2007 published by REAS KONSULTING. www.tabelaofert.pl GUS

43. 3-City The largest developers (projects completed or planned for construction in the period 2006 – 2007) Number of apartments constructed for sales 2000 - 2007 Average price of residential dwelling in 3-CITY (PLN/m2) Demand vs. supply in the period 1994 – 2010 3-City Supply Demand thousands of units Source: Report on Housing Market in Warsaw, 2006/2007 published by REAS KONSULTING. www.tabelaofert.pl GUS

44. Increasing market of housing credits • Significant growth in the scope of granted housing credits • Relatively low interest rates • Favourable and available credits offer proposed by the banks • Significant growth of global value of housing credits supporting the demand on housing market • Population debt ratio in the scope of housing credits in relation to GNP increased up to about 6% in Poland but is still very low in comparison with 49% achieved in fifteen EU countries • According to forecasts of Polish Banks Association, total debts in the scope of housing credits will achieve 134 billion PLN as the end of 2007. The value of housing credits granted in Poland(billion PLN) Source: Polish Banks Association 44

45. Increasing market of housing credits Debts in the scope of housing credits in relation to GNP in selected EU countries (%, 2005) Holland United Kingdom Ireland Slovenia France Spain Greece Poland Italy Belgium Estonia Hungary Germany Austria Czech Republic Source: Report published byEuropean Mortgage Federation, 2005 45

46. INVESTOR RELATION OFFICE - CONTACT DATA: Małgorzata Szwarc-Sroka Liquidity Management Directorand Investor Relations Office Director ph.: 0 22 771 77 85 ph.: 0 22 771 75 10 e-mail: m.szwarc@jwconstruction.com.pl 46