LES NVX CONSTRUCT. : Les Nouveaux Constructeurs: Market Environment More Difficult Than Forecast

Regulatory News:

• Orders up in value at May 31, 2008
  • 10% growth for the Group
  • 29% growth in France
• Forecasts for full-year 2008 revised downwards
  • Increase in revenue now estimated at 10% to 15%
  • Forecast recurring operating margin revised to around 8%

Les Nouveaux Constructeurs, a leading European residential real estate developer, today revised its forecasts for 2008 in response to a market environment that was more difficult than anticipated over the first five months of the year.

-- In terms of sales, Les Nouveaux Constructeurs has noted a slowdown that varies from one region to another.

-- In France, where the environment has become more challenging, sales for the first five months were down by around 30%. As a result, despite a 29% increase in net orders in value for the period, reflecting a sharp increase in supply, sales were lower than initially forecast at year-end 2007.

-- In Spain, the increase in orders noted in first-quarter 2008 has not been confirmed in the second quarter and sales have stagnated since March 31, 2008 despite concerted efforts by sales teams on current programs. With the market at a virtual standstill, LNC has revised all its sales and profitability forecasts in Spain. Nonetheless, based on current backlog, full-year revenue is expected to be on a par with 2007.

-- In Germany, sales, as measured in value, rose by 8% for the first five months of 2008.

-- From a strategic standpoint, Les Nouveaux Constructeurs, which is confident in the validity of its European business model, is adjusting to developments in its various markets. Going forward, the Company intends to concentrate on the following priorities:

-- France: In addition to a focus on retail sales, increased sales to institutional investors (in particular to public housing developers), restrictions on land purchases and controlled development in commercial real estate.

-- Spain: a drawback, with no additional land purchases or program launches, and a reduction in overheads. Focus on the sale of current programs.

-- Germany: an expanded product portfolio with the development of buy-to-rent programs for institutional investors.

-- Eastern Europe: ongoing investment in Poland and Romania, where the Company has recently launched operations.

-- Portugal: closure of the business, which remained marginal in a difficult market.

OUTLOOK

Based on current market conditions, Les Nouveaux Constructeurs forecasts for 2008 revenue growth of 10% to 15% and operating margin of around 8%.

Given the uncertainties, especially in the Spanish market, growth and profitability for 2009-2010 may be in line with 2008.

FINANCIAL CALENDAR

• Second-quarter 2008 revenue report: Thursday, July 31, 2008, before the opening of the Paris Euronext stock exchange.
• First-half 2008 earnings report: Wednesday, October 1, 2008, before the opening of the Paris Euronext stock exchange.

LES NOUVEAUX CONSTRUCTEURS

The Company, founded by Olivier Mitterrand, is a leading developer of new mid-range housing, as well as offices, in France and other European countries. Since 1972, Les Nouveaux Constructeurs has delivered nearly 55,000 apartments and single-family homes in approximately 200 cities in France and abroad. Backed by its operations in France's four largest metropolitan areas and high-quality programs, Les Nouveaux Constructeurs has become one of the most widely recognized names in the industry.

Building on its solid footprint in France, the Company is deploying an innovative European development strategy, with operations in 15 of the European Union's biggest urban areas.

Les Nouveaux Constructeurs has been listed on the NYSE Euronext Paris, compartment B, since November 16, 2006 (code LNC; ISIN code: FR0004023208). All LNC press releases are posted on its website at: http://www.les-nouveaux-constructeurs.fr/finances/communiques

Investor Relations
Les Nouveaux Constructeurs
Ronan Arzel
Managing Director
+ 33 (0)1 45 38 45 96
e-mail: rarzel@lncsa.fr
or
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e-mail:
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