NEWS

Hungary’s Q2 GDP growth revised down to 2.0% y/y – second-reading data

STATISTICS

Hungary’s industrial output falls 1.8% y/y adjusted in July – preliminary

Hungary’s foreign trade surplus EUR 89.7 mln in June, EUR 466 mln in H1 – final data

POLITICS

Hungarian liberal party SZDSZ wants caretaker government to replace current Socialist cabinet

Hungarian PM’s tax proposals open door to fiscal loosening – S&P

Hungary’s liberal party SZDSZ rejects Socialist PM Gyurcsany’s tax proposals

COMPANY NEWS

REAL ESTATE

Polish developer Echo agrees with Budapest on HUF 1.7 bln public works ahead of mixed project

PRESS: Romanian developer Moldova Universal builds EUR 30 mln mall

PRESS: Romanian developer Conimpex develops 400 apartments for EUR 50 mln

PRESS: Romanian developer Tiriac Imobiliare to invest EUR 80 mln in residential project

Hungarian real estate investment fund assets continue to decline in August, down 0.7% m/m

Hungarian developer Futureal to launch 3rd phase of Corvin office project by end-2008

UK industrial developer SEGRO to start developing two Hungarian sites in EUR 17 mln investment

Israeli developer Land Development Company acquires Romanian plot for EUR 6.5 mln

Budapest building plot prices in declining trend – study

Austrian Raiffeisen Evolution finalizes acquisition of Romanian plot for record EUR 90 mln

Hungarian listed property firms draw mixed opinions from analysts

Israeli-owned developer W-GO to build eight retail centers in Romania, invest over EUR 250 mln

Israeli-owned Hungarian developer W-GO abandons Perla provincial retail projects

Romanian developer Iulius Group receives EUR 124.8 mln loan from UniCredit Tiriac Bank

Portuguese developer Plusvag to invest EUR 250 mln in Romanian property project through 2012

PRESS: Value of Romanian property transactions drop 10% y/y in H1 to EUR 903 mln

Hungarian office provider DBH enters Romanian market with Bucharest office, industrial plans

Romanian home completions up 31% y/y to 22,253 in H1 2008

ENERGY NEWS

OIL & PETROCHEMICALS

Hungary’s top oil co. MOL offers HRK 2,800 per share for 25%-owned Croatian peer INA

Hungarian retail gasoline prices to rise HUF 3 per liter this week, diesel unchanged

GAS

Canadian gas exploration firm TransAtlantic Petroleum farms into Romanian exploration license

PRESS: Romanian gas distributor Distrigaz now only bidder for Petrom’s gas distribution arm

Hungarian household gas prices to rise by 6.55% as of October 1; non-household prices up 9.4%

HEAT, POWER & SEWAGE

PRESS: Swedish energy firm Eolus Vind to build wind power projects for EUR 15 mln in Romania

PRESS: Romanian electricity distributor Electrica may become market leader

German RWE’s Hungarian electric utilities Elmu, Emasz more than double profits in H1

ALTERNATIVE ENERGY

PRESS: Polish investment fund CWP to develop Romanian energy projects totaling 900 MW

PRESS: Romanian power firm Hidroelectrica to sell 17 small hydro power stations in October

BANKING & FINANCE NEWS

BANKING

Hungarian banking sector profits fall 13% y/y in H1 2008, total combined assets up 16.7% y/y

Belgian KBC’s Hungarian unit K&H Bank posts HUF 19 bln net profit in H1, up 61% y/y

Intesa Sanpaolo’s Hungarian unit CIB Bank posts HUF 20.4 bln net profit in H1, up 15% y/y

EMERGING MARKETS NEWS HIGHLIGHTS

Russia proposes int’l police forces in security zone around South Ossetia

Russian Foreign Minister to visit Poland on September 11

No additional Russian troops sent to Poti area – Russian Foreign Ministry

Moscow rejects EU claims that intervention in Georgia was disproportionate

U.S. Vice President Cheney to visit Georgia, meet with Georgian President Saakashvili

Russian peacekeepers not to remain beyond South Ossetia, Abkhazia – Russia

FINANCIAL MARKETS

EQUITIES

Budapest Stock Exchange share trading 29/08–05/09/2008

Budapest Stock Exchange, Indices, 29/08–05/09/2008

FIXED INCOME

Hungary fixed income benchmark yields 29/08–05/09/2007

Hungary fixed income benchmark yields 05/09/2007

CURRENCY

National Bank of Hungary official exchange rates 29/08–05/09/2008

Nb: This news report features only the headline of each news.