Ordinary

Extraordinary

Period Loss (Profit)

2. Net Worth Composition

Capital Stock

Treasury Shares

Capital integral adjustment

Treasury Shares capital adjustment

Premium on Shares

Legal Reserve

Reserve for new projects

Retained Earnings

Temporary conversion difference

Total Net Worth

Net income for the first quarter of fiscal year 2010 amounted to Ps. 131.4 million, compared to a Ps. 70.3 million loss in the same period of the previous fiscal year. This is mainly attributable to the increase in our operating income and profits from our related company Banco Hipotecario S.A.

Operating results for the July-September 2009 period showed a Ps. 111.6 million profit compared to a Ps. 0.9 million loss recorded in the same period of the previous fiscal year. This improvement reflects the recovery of results from our Consumer Finance segment, which had recorded operating losses of Ps. 73.7 million during the first quarter of the previous fiscal year, whereas during the period in question it posted an operating income of Ps. 5.9 million.

Compared to the first quarter of the previous fiscal year, total revenues increased 20.5%, to Ps. 263.2 million, attributable to the following segments: Sales and Developments, Ps. 36.3 million; Offices and Other, 40.7 million; Shopping Centers, Ps. 113.8 million; Hotels: 29.2 million; and Consumer Finance: Ps. 43.2 million. Excluding the Consumer Finance segment, the revenues and operating result of the remaining segments increased by 29.7% to Ps. 220.0 million and 45.2% to Ps. 105.7 million, respectively.

The Shopping Center segment continued to show robust results despite the general deterioration of market conditions during the last year and the outbreak of the H1N1 Influenza that affected the flow of visitors to our shopping centers during the month of July, in the peak of the winter season. Both revenues and EBITDA from this segment increased in the region of 20%, whereas the EBITDA/Sales margins remained at levels above 77% and occupancy stood at around 98%.

Our offices and other lease properties had a satisfactory performance during the first quarter of this fiscal year compared to the same period of the previous fiscal year, although certain signs of stagnation were observed in terms of occupancy levels and market prices. Revenues from this segment increased 35.7% whereas the EBITDA rose 31.0%.

As concerns the Consumer Finance segment, during the first three months of fiscal year 2010 the trend in losses of the past quarters was reverted, thanks to the actions taken to in terms of capitalization and streamlining of business operations, confirming the diagnosis that had been made.

In connection with the Sales and Development segment, during this quarter we sold non-strategic office assets for around US$ 3,000 per square meter, reflecting the strength of the local real estate market, as such amount is close to the price paid by us for the purchase of premium properties before the world financial crisis. Moreover, we have started to compute the results of the Horizons project we are developing jointly with Cyrela, hand in hand with the progress of works and cash revenues arising from this venture.

Investments in the USA: Although IRSA’s strategic focus is real estate development and operations in Argentina, the current world scenario presents attractive investment opportunities in new markets. In this sense, in August 2009 we acquired an indirect interest in Hersha Hospitality Trust, a REIT that has 73 hotels located in major cities throughout the United States, becoming its principal shareholder. These hotels are operated under leading franchises that enjoy wide recognition in the market.

During this period we have increased our interest in Banco Hipotecario S.A. to 24.01% of its issued stock capital. The increase in this interest combined with the recovery in Banco Hipotecario’s net income has had a favorable impact on IRSA’s results.

IRSA resumes dividend payments: The Shareholders’ Meeting held on October 29, authorized the payment of Ps. 31.7 million in dividends, representing 20% of its net income for fiscal year 2009, according to the dividend policy set by the Board of Directors.