Notice of Financial Results for the First Half of the Fiscal Year Ending in March31, 2008

Today, NTT Urban Development Corporation announced the results of the consolidated financial results for the NTT Urban Development Group for the first half of the fiscal year ending in March 2008 (its 23rd fiscal period)?the period from April 1, 2007, to September 30, 2007.

• In the first half of the fiscal year ending March 31, 2008, consolidated net sales were \56,604 million (up 1.6% year on year). Operating income was \11,056 million (down 3.6% year on year). Recurring income was \9,970 million (down 6.0% year on year), and net income came to \5,985 million (down 4.1% year on year).
• The leasing business segment achieved higher sales and income, owing to increased operation at new properties and improved rents at existing properties. Segment net sales came to \44,248 million (up 4.5% year on year), and operating income was \12,180 million (up 5.6% year on year).
• In the residential property sales business segment, net sales were \7,990 million (up 2.2% year on year), due to the sales of land lots in the city of Iruma, Saitama Prefecture. However, owing to the concentration of sales of condominiums in the second half, first-half segment operating income was \443 million (down 60.6% year on year).
• Forecasts of consolidated Financial results for the full fiscal year ending March 31, 2008, remain unchanged from the company's initial forecast: net sales of \138.0 billion (up 7.6% year on year), operating income of \28.0 billion (up 11.6% year on year), recurring income of \24.5 billion (up 6.8% year on year) and net income of \14.0 billion (up 7.7% year on year). Each of these targets represents a historic high. In addition, the Company has revised its investment plan for the term upward, from \55.0 billion to \59.0 billion.