(24 April 2008, Pasay City, Philippines.) During its annual stockholders meeting, SM Prime Holdings, Inc. (“SM Prime�?) announced that its Board of Directors approved the declaration of a 24-centavo cash dividend per share worth Php2.99 billion. This is in line with SM Prime’s dividend policy of a 50% payout ratio of prior year’s net income which amounted to Php5.97 billion for full year 2007.
 

The rest of the earnings will be used for the company’s expansion program. In 2008, the Company is scheduled to open SM City Marikina, SM City Baliuag and SM Supercenter Rosales. Also underway are the expansion of SM Megamall, and SM City Fairview, and SM North EDSA, with the latter to be completed in 2009. Total gross floor area will increase to 4.2 million square meters by end 2008, coming from 3.9 million square meters as of December 31, 2007. The capital expenditure (capex) for 2008 is estimated at Php6 billion.

Over a five year period, SM Prime’s capex could amount to Php33 billion, excluding capex plans for China.

Last November 13, 2007, the Board of SM Prime approved the acquisition of the three SM malls in China. The SM malls in China are similar to the SM malls in the Philippines, and are located in highly populated areas in southern and western China namely, Xiamen, Jinjiang and Chengdu. The move will allow SM Prime to gain a foothold in China’s fast-growing economy and use this as a platform for long-term growth outside of the Philippines where it is the dominant shopping mall developer.

The subscription agreements between SM Prime and Grand China International Limited/
Oriental Land Development Limited were already signed last February 18, 2008. The relevant documents were already submitted to the SEC and the PSE last February 29, 2008. Subject to regulatory requirements, the Company expects to obtain the necessary approvals and complete the acquisition within the first half of 2008.

— End —

For further information, please contact:
Mr. Jeffrey C. Lim
Executive Vice President
SM Prime Holdings, Inc.
Email: [email protected]
Tel no: 831-1000 loc. 1401