In 2007 Yapı Kredi Koray once again continued to nourish its performance and growth by focusing on its basic competitive advantages of:

• A strong position in its national market
• Superior project development competencies
• Ability to achieve perfection in project implementation.

37,3% growth in portfolio net asset value On the basis of its end-2007 results, Yapı Kredi Koray registered a 3,73% rate of year-on growth in the net asset value of its portfolio, which reached YTL 168,4 million. As of the same date, the company's total assets were worth YTL 259,3 million and its shareholders' equity amounted to YTL 106,1 million, a year-to-year rise of 7,1%. Net current profit was also up 82,7% during the same period and reached YTL 11,4 million, generating a net earnings per share of YTL 0,2840.

Healthy development and productive growth The Turkish economy is undergoing a process of strong growth. A youthful population is the predominant feature of the country's demographic profile and this fact offers important opportunities for the real estate industry in Turkey. With eleven years of steadily growing experience and performance in its sector, Yapı Kredi Koray comes up with perfect solutions for the needs of today's rapidly transforming cities. This is what makes the company one of the most striking examples of healthy development and productive growth.

Developments in our project portfolio
Containing as it does of some of Turkey's most distinguished real estate projects, Yapı Kredi Koray's portfolio continued to be managed effectively in light of macroeconomic conditions and market developments during 2007. The company concentrated its attentions on new project development while continuing to work on and completing its existing projects on schedule and within budget.

The highlights of developments in the company's Project portfolio in 2007 are summarized below.
• Neo Eskiflehir, a project developed by Yapı Kredi Koray and that city's first shopping and lifestyle center, was completed and sold to Riva Gayrimenkul Geliştirme Yatırım, a real estate development and investor, for YTL 127,4 million (including VAT). Serving customers and the public with 50.000 m2 of space in Eskişehir, Neo is a successful example of the potential that lies in shopping center development outside İstanbul and is also strong evidence of the validity of Yapı Kredi Koray's portfolio strategy.

• Yapı Kredi Koray continued to adhere strictly to the project delivery date commitments that it made to its customers. A section of the Evidea Project developed jointly with Do¤ufl GE GYO and consisting of 473 units was turned over to its owners during the year.

• Deliveries under the 112-units İstanbul Bis Project were completed as of April. This is the third major residential project undertaken by Yapı Kredi Koray in the Kemerburgaz Göktürk region following up the successes of its İstanbul İstanbul and İstanbul Zen projects.

• Developments in the company's Ankara projects continued without letup. Construction work on the Ankara Ankara project was largely completed and deliveries are scheduled to take place in the second quarter of 2008. Work was begun last year on the construction of three residential blocks (19.335 m2) and a boutique shopping mall (14.077 m2) in the Çankaya district of Ankara.

• In November 2007, Yapı Kredi Koray's Mor Ada Project in the Esenyurt district of İstanbul was launched. This project consists of 13 residential blocks and a total construction area of 189.634 m2.

• In addition to the İstanbul İstanbul, İstanbul Zen, İstanbul Bis, and Evidea residential projects that it has completed to date, Yapı Kredi Koray is continuing to work on its Ankara Ankara, Mor Ada, and Ankara Çankaya projects. With eleven years of growing experience and performance in its sector, Yapı Kredi Koray comes up with perfect solutions for the needs of today's rapidly transforming cities.

Our customers are our most valuable asset
The importance that Yapı Kredi Koray gives to its customers is revealed in the projects that it develops. The company is focused on coming up with projects and solutions that are specially designed to meet a customer's needs and expectations in the best way possible.

This way of thinking informs the entire Yapı Kredi Koray business process from initial project development to unit deliveries and after-sales services. Yapı Kredi Koray's experience and approach in customer relations have always manifested themselves in its identity as a company that listens to its customers carefully and understands them well.

The company gives the utmost importance to ensuring that the members of its sales team are completely informed about all aspects of projects. Specially prepared fully-detailed training programs provide the sales team with all the support that they may need.

Financing, marketing, and project development muscle
Yapı Kredi Koray regards project development as an integral part of both the financing and the marketing processes. Making the most effective use of all the opportunities provided by its solid balance sheet, the company registers sound and continuous growth with a real estate portfolio containing some of the choicest properties to be found in our cities.

Yapı Kredi Koray's reputation is growing steadily in the international arena while in its home market the company enjoys an unchallenged position that is bolstered by its potential to undertake serious investment in a variety of business lines. These attributes make Yapı Kredi Koray a strong center of attraction while also creating a flexibility that enables the company to reposition itself in the face of macro-level volatilities and changing market expectations.