TK Development A/S reported unaudited consolidated earnings results for the second quarter and first six months ended July 31, 2012. For the quarter, the group recorded loss before tax of DKK 33.1 million compared to profit of DKK 15.6 million in a year ago. The results after tax amounted to loss of DKK 31.7 million, against profit of DKK 22.0 million in a year ago. Loss per share was DKK 0.7 against earnings per share of DKK 0.5 a year ago. Net revenue was DKK 74.6 million against DKK 55.1 million a year ago. Loss before financing and depreciation was DKK 15.1 million against profit of DKK 4.8 million a year ago. Operating loss was DKK 15.7 million against profit of DKK 4.1 million a year ago.

For the six months, the group recorded loss before tax of DKK 40.0 million compared to profit of DKK 8.1 million in a year ago. The results after tax amounted to loss of DKK 186.6 million, against profit of DKK 16.9 million in a year ago. Loss per share was DKK 4.4 against earnings per share of DKK 0.4 a year ago. The Group's net interest-bearing debt amounted to DKK 2,328 million. Net revenue was DKK 129.3 million against DKK 172.0 million a year ago. The revenue stems mainly from the sale of projects, rental and fee income, etc. Loss before financing and depreciation was DKK 2.4 million against profit of DKK 22.1 million a year ago. Operating loss was DKK 3.6 million against profit of DKK 20.6 million a year ago. Cash flow used in operating activities was DKK 75.0 million against DKK 6.6 million a year ago. Return on equity (ROE) was negative of 20.9% against positive return of 1.8% a year ago. Investments in equipment, fixtures and fittings were DKK 0.2 million against DKK 0.4 million a year ago.

The group announced that Ernst Michaelsen has chosen to retire from the Supervisory Board. At the Company's Annual General Meeting in May 2012, Ernst Michaelsen was elected as a new Supervisory Board member at the request of a few major shareholders. His decision to retire from the Supervisory Board is based on subsequent changes to the group of shareholders, which mean that Carl Ejler Rasmussen Holding Sweden AB no longer holds shares in TK Development A/S.

In light of the volatility of financial markets, the volume, timing and proceeds of major project sales are subject to uncertainty. Despite this uncertainty, Management expects to sell additional projects in the near future and to generate positive pre-tax results for the fiscal 2013. Thus, Management maintains its profit expectations for fiscal 2013.