PAREF

The PAREF Management Board meeting of 19 October 2006 ,
chaired by Hubert Lévy-Lambert, approved the Group's consolidated interim
financial statements at 30 June 2006 and submitted them to the Supervisory
Board. Consolidated results, prepared in accordance with IFRS, highlighted
the following:

A thriving new SIIC

Following the IPO of December 2005 and the 2 capital increases carried out
on that occasion (generating a total of € 25 million, share premium included),
Paref opted for the tax status of SIIC ( listed real-estate company ) in 2006
and committed to an ambitious investment programme, while continuing to develop
its management on behalf of third parties business.

Consolidated interim net profit up 9.4%

2006 consolidated interim net profit amounted to € 4.4 million after
tax, compared to € 4 million at June 2005. Changeover to the SIIC status
resulted in a € 2.5 million decline in deferred tax.

Property value up 87%

The disposal value of the Company's property, was € 71 million at the
end of June 2006, including € 59 million in investment property, € 2
million in SCPI shares (real estate investment trusts), € 2 million
for the property dealing business and € 8 million in assets held for sale
(i.e. the Courbevoie building sold in July 2006), compared to a total € 38
million at the end of June 2005 (an 87% increase) and € 49 million at the
end of December 2005 (a 45% increase).

45 % increase in rental income

After restatement for the Courbevoie lease cancellation compensation (€ 1,013
thousand collected in 2005 1st half-year), rental income increased from € 1461
thousand in the 2005 1 st half-year to € 2,122 thousand in 2006 1 st half-year
(up 45.2%). The increase was due to growing property value as well as higher
rent resulting from indexation and renewal of expired leases, as occupancy
ratio remained very high:

• 100% for residential buildings


• 96% for commercial
  buildings (excluding the Courbevoie building, which was released in preparation
  for its sale in July 2006).

Development of management on behalf of third parties (up 14 %)

Management fees received have increased by 14% due to high collection levels
by SCPIs managed by the Group's subsidiary SOPARGEM.

Thus, Pierre 48 (rented apartments) registered overall year-on-year performance
of 12.8%. It had property under management of € 148 million at 30 June
2006 , compared to € 110 million at the end of June 2005 (up 34%). Novapierre
1 (business premises) registered overall year-on-year performance of 9.5%. It
had p roperty under management of € 31 million at 30 June 2006 , compared
to € 17 million at the end of June 2005 (up 77%).

NAV / share up 8.4% compared to December 2005

Net asset value per share (NAV), computed as a replacement
value was € 76.86
at the end of June 2006, compared to € 70.88 at the end of December 2005.

Equity

Group consolidated equity amounted to € 48 million at the end of June
2006, compared to € 44 million at the end of the 2005 financial year.

Continued selective investment strategy

The Company undertook commitments of nearly € 30 million, including the
following:

• Acquisition of the usufruct of an SCPI portfolio for € 2
  million


• An undertaking for the sale of flats in Paris for € 6
  million


• A memorandum of understanding for the purchase of the premises
  of a private hospital in the Paris region for € 5 million


• Three offers, agreed by the seller, for the purchase of warehouses
  and offices in the Paris region for € 16 million.

In addition, the Company has submitted offers for a total asset value of € 150
million, which includes a residential building portfolio located abroad, a
flat portfolio in Paris and a complex of office buildings in France .