Cresud S.A.C.I.F. y A. Announces Results for the Fiscal Year Ended June 30, 2009

• Press Release
• Source: Cresud S.A.C.I.F y A.
• On 1:36 am EDT, Wednesday September 9, 2009

BUENOS AIRES, Argentina, Sept. 8 /PRNewswire-FirstCall/ -- Cresud S.A.C.I.F. y A. (Nasdaq: CRESY; BASE: CRES), today announced results for Fiscal Year Ended June 30, 2009

HIGHLIGHTS

• As from October 1, 2008, Cresud presents its results in consolidated form with those of IRSA Inversiones y Representaciones S.A., in which we held a 55.64% interest as of June 30, 2009. IRSA's revenue and cost line items correspond to the nine-month period between October 1, 2008 and June 30, 2009. IRSA's prior results are recorded under the item Gain from related companies

• Net income increased from Ps.22.9 million in fiscal year 2008 to Ps.124.6 million in fiscal 2009. This performance is attributable to the impact of IRSA's results on Cresud's balance sheet and to the consolidated gain from the acquisition and holding in the portfolio of Cresud and its subsidiaries of US$ 102.7 million in nominal value of Notes issued by IRSA and Alto Palermo in 2007. These factors have more than compensated the adverse effects of the global crisis and extreme weather conditions for agriculture prevailing in Argentina on Cresud's agriculture and livestock business.

• The operating income of Ps.215.4 million comprises a Ps.277.4 million gain from the consolidation of IRSA's segments, and a Ps.62.0 million loss from Cresud's agriculture and livestock segments in fiscal year 2009 compared to a Ps.43.6 million gain in the previous year. This is due to adverse weather conditions that lead to lower yields and margins in agricultural products together with the drop in prices resulting from the slowdown in world economy during this year. In addition, there was a decrease in the sales of farms compared to the previous year, reflecting a reduction of Ps.21.1 million in revenues in our income statement

• We continued with the development of our Los Pozos farm in Salta, where we have increased our land for livestock production from 33,000 hectares in fiscal year 2008 to 43,000 hectares in fiscal 2009. Hosting 55,000 heads of cattle, Los Pozos represents a unique livestock production farm in terms of size and efficiency. During this year, the surface area devoted to crops at Los Pozos increased from 1,500 hectares to 4,400 hectares.

• BrasilAgro: during this year, our interest in BrasilAgro rose to 19.14%; this company in expansion increased its sown surface area by 52%, to 33,504 hectares of its total portfolio of 165,373 hectares distributed among 8 farms. BrasilAgro's substantial liquidity of R$ 264.4 million enables it to take any new opportunities that may arise in terms of development of own hectares or acquisitions in the Brazilian agricultural sector. For this purpose, it has surveyed over 2.5 million hectares.

• Regional expansion: We have purchased 12,166 hectares in Bolivia for agricultural production. These hectares are in production and allow double harvesting during the year. In the case of Paraguay, we have launched an agricultural, livestock and forestry project through a company that owns 41,931 hectares and a purchase option for another 100,000 hectares. This project will be developed in several stages, and we believe that it has a high potential for land development and appreciation.

• During fiscal year 2009, we implemented a repurchase plan for 30 million shares as a result of the evident distortion in the price of Cresud's share compared to the quality of its assets. The result of this decision has been successful, as we have repurchased 5.98% of outstanding capital stock at an average price of US$ 7.18 per ADR.

• Regarding the operations of our controlled company IRSA, operating losses were reduced in the consumer finance segment compared to those recorded for the first quarters of the fiscal year. The other segments still present good cash flow generation and results. During this year, IRSA has incorporated to its portfolio, through its subsidiary Alto Palermo, its 11th shopping center, the largest in the city of Buenos Aires. It has also completed construction and made available for rental a new office building, and has sold non-strategic office properties for lease at prices that reflect the value appreciation potential of its commercial real estate portfolio.

                                Financial Highlights
                           (In Thousands of Argentine Pesos)
                                 Fiscal Year ended
                                   June 30, 2009

    Income Statement               As of June 30, 2009  As of June 30, 2008
    Production Revenues                        172,512              159,821
    Gross Profit from Agribusiness              (3,374)              85,670
    Real Estate Segments Sales               1,015,280                    -
    Gross Profit from Real Estate              579,357                    -
    Gross Profit                               575,983               85,670
    Operating Profit                           215,403               43,612
    Net Income                                 124,616               22,948


    Balance Sheet                  As of June 30, 2009  As of June 30, 2008
      Current Assets                         1,157,655              736,865
      Non Current Assets                     4,818,401            1,332,895
    Total Assets                             5,976,056            2,069,760
      Current Liabilities                    1,313,912              262,348
      Non Current Liabilities                1,413,278               43,914
    Total Liabilities                        2,727,190              306,262
      Minority Interest                      1,435,982                1,160
    Shareholders' Equity                     1,812,884            1,762,338

About Cresud:

Cresud is a leading Argentine agricultural company with a growing presence in the Brazilian agricultural sector through its investment in BrasilAgro-Companhia Brasileira de Propriedades Agricola. Cresud is currently involved in a range of activities including crop production, cattle raising and milk production. Cresud's business model, which it seeks to roll out abroad, taking into account the specific conditions of each country, focuses on the acquisition, development and exploitation of properties having attractive prospects for agricultural production and/or value appreciation and the selective disposition of such properties where appreciation has been realized.

A longer version of this press release with detailed information is available on the web site: http://www.cresud.com.ar.

Cresud cordially invites you to participate in its Fiscal Year 2009 Results Conference Call on Monday, September 14, 2009, at 11:00 am Eastern Time

If you would like to participate, please call:

United States: 800-314-6696

International: +1-706-758-8485

To access the webcast, click on the link below:

http://www.videonewswire.com/event.asp?id=61954

Buzz up!