PAREF

The Directors of SIIC PAREF, a real-estate company specialising in propertyinvestments and management on behalf of third parties, announce a strong growthin the company's two main business sectors in 2006, with a level of investmentin line with guidance announced during the introduction to the stock marketat the end of 2005 and a growthof 45% of the capitalisation of the funds (SCPI)managed by its subsidiary Paref Gestion.

INVESTMENTS: over € 100 million committed in 2006

In line with its growth strategy, the many investments made demonstrate thecommercial vitality of the PAREF Group. Inclusive of the acquisition offersmade at the end of the year, the total committed for the year 2006 amountedto € 104.5 million , and this included:

• 6 acquisitions for € 31 million : 2 mixedproperties in rue de Rivoli and rue du Roule (Paris 1) for € 9 million;a clinic in Avenue Parmentier (Paris 11) for € 9.7 million and a formerclinic in Gentilly (92) for € 4.7 million ; warehouses in Cauffry(60) for € 2.8 million and Les Ulis (91) for € 4.5 million;
• Acquisitions of usufructs for € 3.3 million :a residential property in Paris for € 1.1 million : shares of SCPIfor € 2.2 million;
• Purchase agreements for € 35.2 million: officesin Juvisy (91) for € 3.5 million; business premises in Vaux le Pénil(77) for € 4.9 million, in Rueil-Malmaison (78) for € 3.3 millionand in la Courneuve (93) for € 12.5 million, a portfolio of offices andbusiness premises in the Paris region and Toulouse for € 11 million;
• Offers issued for € 35 million : agreementsreached at the end of the year with sellers but not yet followed by exchangeof contracts.

Including the property acquired in rue Berger ( Paris 1) in December 2005for € 11.2 million, the commitments correspond to the investment guidanceannounced by PAREF at the time of its stock market introduction, at the endof 2005.

In conformity with its policy of active management, PAREF also entered intoan arbitrage by disposing of a property in Courbevoie for € 8 million.A capital gain of € 5.3 million was recorded at company level.

MANAGEMENT FOR THIRD PARTIES: strong growth in SCPIs managed by ParefGestion

At the same time as those numerous investments, the management for third partiesbusiness also performed very well throughout 2006. This was driven by the stronggrowth in the SCPIs, although offset modestly by the sale in the second halfof the year of assets managed on behalf of Westbrook.

The capitalisation of SCPIs, based on the issue price at31 December 2006, grew by 45% in one year , thus:

• Pierre 48 (SCPI zero coupon) € 190 million (+45%)
• Novapierre 1 (SCPI for shop premises) € 38 million (+46%)
• Interpierre (SCPI for offices) € 3 million (+23%)

Hubert Lévy-Lambert, Chairman of theManagement Board stated “ Group Management is pleased with the veryfavourable developments in 2006 in all operations. The year was marked bystrong commercial dynamism in management activities and successful investments.I take this opportunity to thank everyone in our Group as well as all our partners,directors and shareholders for their confidence, support and loyalty.

We will continue our targeted investment policy in 2007 by investingaround € 150 million, mainly on business properties, while retaininga debt ratio of 66.7%, with a dividend distribution objective of around4%”.

Next financial announcement
14 February 2007 : 2006Sales

PAREF was listed on EurolistC of Euronext Paris stock exchange in December 2005
PAREFoperates in two complementary areas:
property investment and managementon behalf of third parties.
PAREF has elected for SIIC (listed real estate company)status for the 2006 financial year.

A liquidity contract on the company's securities, complyingwith the new charter of professional ethics drawn up by the AFEI (French Associationof Investment Firms) and approved by the AMF (French stock market regulator)on 22 March 2005, was signed with the company Banque Privée FideuramWargny.

PAREF shares trade on Eurolist C by Euronext Paris
ISINcode : FR00110263202 - Ticker :PAR

For further information, please visit the PAREF Group website : http://www.paref.com