Halla Engineering & Constr. (014790)   STOCK Address 9TH FL.,SIGMA TOWER, 7-19, SINCHEON-DONG, SONGPA-GU,SEOUL Home Page www.halla.co.kr Established 1980. 5. 2 Tel 02-3434-5114 Listed 1994. 8.12 IR Common shares O/S 9,637,056 President Kim,Hong Du Preferred shares O/S No.of Employees 741(2007. 6) Despite of resale of some housing units from internal projects in Seosan (completed in Dec. 2006) during the first quarter, revenue increase in the following quarter resulted in an exterior expansion. Payment of additional corporate tax of KRW15.4 billion following the audit for accounting years 2001~ 2005 resulted in a significant decrease in net profit. The company's stable business portfolio has secured Halla sufficient response capacity to changes in the real estate market despite of the housing business expansion. It has realized the industry-high average sales ratio of 95% for housing business. Cost-income ratio improvement for both housing and civil engineering businesses has made a further exterior expansion and profit growth plausible. Expansion of internal businesses and private-sector SOC businesses with high profitability will have a positive effect on the company's overall profitability. Appreciation of equity holdings for Mando, Saeron Automotive, Mokpo New Port, and Second Mokpo New Port will enhance the company's financial stability. (date: 2007.06, unit : %) Name Jeong Mongwon Sloane Robinson LLP Cosmo Investment Consulting Portion 16.4 9.8 8.6 (unit : %) Sales Construction 72.5 Cost Raw Materials 24.4 Civil Engineering 29.0 Labors 5.0 Others 0.1 Overhead 70.5 (Unit : 100Mn.Won,Won) Year 96. 1 97.11 97.11 99.12 99.12 Type BI RI BI RI BI Amount 15.60  51.48  44.62  133.85  80.31