HIGHLIGHT

Significant outcome 2005.1Q 100million won unit

New orders

Sales Operating profit Ordinary profit

Net profit

1,224

2,069

1,401 1,31

2

151144

160

104122

83

2004.1Q

2005.1Q

2004.1Q 2005.1Q

New orders 1,224 2,069

Sales 1,401 1,312

Operating profit 151 144

Ordinary profit 160 104

Net profit 122 83

Orders received 2005.1Q 100million won unit

NEW ORDERS

Civil eng Water works Architecture Housing

2844

352

8097

346

747

1,599

2004.1Q

2005.1Q

New orders 2005.1Q 100million won unit

New orders in the first quarter of 2005 reached a total amount of 206.9 billion won. This amount consisted of 4.4 billion won in civil engineering works, 8 billion won in water works, 34.6 billion won in architecture and 159.9 billion won in housing. This amount also represented a increase of 69% compare to the same period in previous year.

The water works sector showed decrease of 77.3% compare to the same quarter in previous year due to concentration of ordering in the second half of the year. Meanwhile civil eng sectors registered a rise of 57.1% Despite contraction in the private sector and real estate markets, the architecture and housing sectors also registered a rise 256.7% and 114.1%, respectively, over the same quarter of the previous year.

New orders in the first quarter included 80.6 billion won in apartment houses in Eun-pyoung new town and 79.3 billion won in housing construction in the 4-1 district in Hwasung Dongtan.

2004.1Q 2005.1Qcompared to the same

period last year'05 Goal

compared to 2005 targets

Civil eng 28 44 57.1% 3,800 1.2%

Water works 352 80 - 77.3% 2,620 3.1%

Architecture 97 346 256.7% 3,140 11.0%

Housing 747 1,599 114.1% 2,940 54.4%

Total 1,224 2,069 69.0% 12,500 16.6%

Order backlog Breakdown (As of 2005.1Q) 100million won unit

Order backlog

22.220

3,2121,1713,447

5,054

12,884

3,1971,745

3,841

3,810

12,593

1,935

4,438

4,218

3,893

14,484

1,1024,759

4,185

5,542

15,588

2,215

4,989

3,915

5,801

16,920

2,102

6,164

3,750

5,474

17,490

'00 '01 '02 '03 '04 '05 1Q '05 (F)

Civil : Roads, bridges, railways, industrial complex

Water : Drainage treatment & filtration plants

Architecture : Government and city office B/D, broadcasting center, hospital

Housing : Apartment, Residence – commerce combination complex

100million won unit

SOC16.60%

turn-key25.80%

PQ39.70%

Housing12.00%

Private5.80%

turn-key

SOC

PQ

Private

Housingprivate23%

public77%

private

public

: 4,519

: 2,905

: 6,946

: 1,018

: 2,102

: 3,120

: 14,370

Sales 2005.1Q 100million won unit

SALES REVENUE

Compared to the sales target in 2005.1Q 100million won unit

Civil eng Water works Architecture Housing Etc.

342332

406

296

384

369

220262

49 53

2004.1Q

2005.1Q

Total sales revenue in the first quarter reached 131.2 billion, decreasing 6.4% the same period of the last year. it consisted of 33.2 billion won in civil eng works[25.3%], 29.6 billion won in water works[22.6%], 36.9 billion won in architecture[28.1%], 26.2 billion won in housing[20.0%], and 5.3 billion in other revenues[4.0%]

According to sector, the civil eng sector recorded a decrease of 2.9% compare to the same quarter of the last year. In particular, water works sector recorded a decrease of 27.1% due to stagnation in sales caused by slightly reduced order backlog and starting new constructions. Architecture sector declined 3.9% with completion of existing constructions On the other hand, the housing sector rose 19.1% compare to the same period of the previous year due to increasing new orders

2004.1Q 2005.1Qcompared to the same

period last year'05 Goal

compared to 2005 targets

Civil eng 342 332 - 2.9% 1,900 17.5%

Water works 406 296 - 27.1% 1,650 17.9%

Architecture 384 369 - 3.9% 1,950 18.9%

Housing 220 262 19.1% 1,300 20.2%

etc. 49 53 8.2% 200 26.5%

Total 1,401 1,312 - 6.4% 7,000 18.7%

Architecture28%

Water works23%

Civil eng25%

Housing20%

Etc4%

Etc

Housing

Architecture

Water works

Civil eng

Sales Breakdown

Civil eng342

Civil eng332

Water works406

Water works296

Architecture384

Architecture369

Housing220

Housing262

Etc.53

Etc.49

2004.1Q

2005.1Q

100million won unit 100million won

unit

Revenue ratio by business area (2005.1Q)

New orders 100million won unit

NEW ORDERS&SALES

Sales 100million won unit

New orders Breakdown 100million won unit

2000 2001 2002 2003 2004 2005.F 2006.F 2007.F

Civil eng 641 670 1,764 3,668 2,267 3,800

water works 1,409 1,799 2,150 1,640 1,732 2,620

Architecture 1,383 2,090 3,469 1,963 2,885 3,140

Housing 1,874 218 639 670 1,616 2,940

Total 5,307 4,777 8,022 7,941 8,500 12,500 13,000 14,000

2002 2003 2004 2005.F

Genaral public 2,994 4,307 3,094 2,400

Turn key 2,075 1,233 1,107 5,100

SOC 1,271 440 1,407 1,800

Private 1,043 1,291 1,279 200

Housing 639 670 1,613 3,000

Total 8,022 7,941 8,500 12,500

2000 2001 2002 2003 2004 2005.F 2006.F 2007.F

Civil eng 1,425 1,922 1,822 1,898 1,991 1,900

Water works 976 1,405 1,702 1,808 1,640 1,650

Architecture 1,029 461 921 1,932 1,794 1,950

Housing 1,055 1,045 1,745 1,540 1,185 1,300

Etc 266 138 181 202 203 200

Total 4,751 4,971 6,371 7,379 6,813 7,000 8,800 9,500

Yr end backlog 12,884 12,593 14,484 15,588 16,920 22,220 26,420 30,920

Gross Profit . Operating Profit . Ordinary Profit / Net Profit 100million won unit

PROFIT&LOSS

2004.1Q

2005.1Q

Ordinary profit Net profit

160

104122

83

Gross margin 100million won unit

Gross Profit Gross profit in the first quarter were decreased of 6.2% due to completion of leading businesses and sale depression of new promoting constructions. Meanwhile, The gross profit margin rose 0.1% compared to the same period of the previous year with improving cost rate. According to sector, The gross profit margin of civil eng works increased 0.1% over the same period of the preceding year, and that of the water works and architecture sectors registered a rise of 2.8% and 2.0%,respectively, over the same period of the previous year. However, housing sector registered a decline of 2.7% due to increased cost in the apartment construction works in Suji Ⅱ, Yongin and Munhyoundong.

Operating Profit Operating profit in the first quarter of 2005 decreased 4.4% to 14.4 billion won compared to the same period of the previous year due to reduction of sales in this quarter. The operating margin ratio was 11%, a little down by 0.2% from the previous year. Meanwhile selling & administrative expense decreased by 6% of sales compared to the same period of the previous year with slight reduction of advertising expenses and current study development costs.

Ordinary Profit / Net Profit Ordinary profit and Net profit in the first quarter were 10.4 billion and 8.3 billion won, down by 34.8% and 32.1%, respectively compared to the same period of the previous year due to loss from the equity method accounting [2.9 billion won] as aggravation of actual results of SBS. (2005 1Q Net loss 7 billion won)

Operating profit

151144

Gross profit

243

229

2004.1Q 2005.1Q %

Civil 20.8% 20.9% 0.1

Water 21.8% 24.6% 2.8

Architecture 14.0% 16.0% 2.0

Housing 7.1% 4.4% - 2.7

Others 28.9% 30.1% 1.2

Total 17.3% 17.4% 0.1

13.6%

19.8%

-2.7%

15.2%

18.2%

13.0%16.5%

19.0%

14.2%

14.4%

11.1%4.9%

9.5%7.4%

9.5%

2.4%

-0.7%

18.2%

0.5%

-2.1%

23.7%22.3%

31.9%34.3%

31.8%

Water worksCivil engArchitectureHousingEtc.

2001 2002 2003 2004.1Q 2005.1Q

OP margin breakdown

17.4%17.3%16.6%

17.3%17.2%

11.0%10.8%10.6%

12.2%11.4%

GP marginOP marginGP . OP margin

2001 2002 2003 2004.1Q 2005.1Q

Borrowings by year 100million won unit

FINANCIALSTATE

Borrowings by year 100million won unit

2001 2002 2003 2004

Total borrowings

Net borrowigs

10

-363

10

-61

100

-14

1,150

1,099

1,617

1,387

2005.1Q

Assets Total asset at the end of March 2005 were 828.4 billion won, increased 6.2% form the beginning of the fiscal year, due to various factors, including increasing of quick asset (17.1%) compared to last year caused by increase of receivables and prepaid from construction contract and increasing property, plant & equipment (4.5%) by construction of The honors C.C in Gyoungju.

Liabilities Total liabilities in the first quarter of 2005 rose 13.9% compare to the beginning of the fiscal year, as a result of increase in short-term borrowings [46.7 billion won] for management.

Capital Total capital in the first quarter of 2005 is 445.8 billion won, a slight increase[0.5%] compared to the end of last year, which is due to the increase in retained earnings caused by the occurrence of a profit from last year.

2001 2002 2003 2004 2005.1Q

Short- term borrowings - - 90 150 617

Long- term borrowings - - - - -

Corporate bonds 10 10 10 1,000 1,000

Total borrowings 10 100 100 1,150 1,617

Cash and cash equivalents 215 15 114 51 230

Short- term financial product 22 - - - -

MMF 135 56 - - -

Net borrowings (363) (61) (14) 1,099 1,387

Major financial information %, times, won unit

Trend of stock price 2003. 12 – 2005. 05

2000

2001

2002

2003

2004

2005 1Q

5.9

4.2

3.4

4.9

6.1

8.1

2005.1Q yearly financial ratio, EBITDA, EV/EBITDA and our estimation

PER

2000 2001 2002 2003 2004 2005 1Q

ROE 15.5 16.9 22.5 14.3 9.3 5.1

ROA 7.3 8.8 13.9 9.3 5.6 2.9

Operating profit margin 4.6 11.4 12.2 10.6 8.1 11.0

Gross profit margin 13.7 17.2 17.3 16.6 13.7 17.4

Net profit margin 7.8 8.8 11.4 7.4 5.9 4.4

Debt ratio 116.9 73.0 52.6 56.8 75.6 86.0

Interest coverage ratio 1.9 11.5 47.1 30.4 14.6 11.0

Capital ratio 46.1 57.8 65.5 63.8 57.0 53.7

Asset turnover ratio 0.93 1.00 1.22 1.25 0.96 0.11

EPS 5,347 6,711 11,190 8,363 6,121 5,080

EBITDA(100 mill ion won) 243.3 586.2 798.2 808.9 580.7 596.4

EV/EBITDA 9.6 5.2 3.7 3.9 6.9 8.0

Stock price(common dtock) 22,500 39,500 38,000 41,000 37,500 41,000

Balanca sheets million won unit

Financial stement

Account 2003. 1Q 2004. 1Q 2004 2005.1Q

Current assets 231,368 179,902 265,251 308,857

quick assets 196,935 178,176 256,881 300,897

cash and cash equivalents 23,661 14,560 5,142 22,989

short- term financial instrument 0 0 7,927 5,497

marketable securities 8,707 2,231 1,142 2,125

etc. 164,567 161,385 242,669 270,285

inventories 34,433 1,726 8,370 7,960

rental housing assets 4,547 4,547 4,547 4,547

Non- current assets 362,293 482,838 510,532 515,011

investments 275,675 293,193 303,402 298,638

property, plant & equipment 86,528 189,577 207,076 216,326

intangible assets 90 68 53 47

total assets 598,208 667,287 780,330 828,415

current l iabil ities 145,927 165,737 146,946 182,962

trade payable 754 4,004 7,009 3,142

short- term borrowings 34,000 29,928 15,000 61,663

Non- trade payables 0 78,840 86,740 74,437

etc. 111,173 52,965 38,197 43,720

long- term liabil ities 91,098 84,454 188,950 199,698

bonds payable 1,000 0 100,000 100,000

long- term advancesfrom construction contracts

20,993 16,217 22,837

etc. 90,098 63,461 72,733 76,861

total l iabil ities 237,024 250,191 335,896 382,660

capital stock 39,479 39,479 39,479 39,479

additional paid- in capital 118,211 118,211 118,211 118,211

retained earnings 244,876 283,160 310,938 312,494

capital adjustment (41,381) (23,753) (24,194) (24,428)

Total stockhoder's equity 361,184 417,096 444,433 445,755

Total l iabil ities & stockholder's equity 598,208 667,287 780,330 828,415

Statements of income million won unit

Account 2003.1Q 2004. 1Q 2004 2005.1Q

Sales 175,318 140,144 681,256 131,213

contract 170,012 135,274 660,950 125,859

l ease / etc. 5,306 4,870 20,306 5,354

cost of goods sold 141,980 115,836 587,701 108,326

contract 138,289 112,374 572,942 104,539

l ease / etc. 3,691 3,462 14,759 3,787

Gross profit 33,338 24,309 93,555 22,887

sell ing & administrative expenses 8,724 9,231 38,107 8,476

sal ari es expense 3,558 2,604 13,177 3,260

depreci ati on expense 335 600 2,030 489

adverti si ng expense 1,993 1,072 3,387 373

ordi nary & expense 717 2,610 3,885 833

etc. 2,121 2,345 15,628 3,521

Operati ng i ncome 24,613 15,077 55,448 14,411

Non- operating revenues 7,184 3,498 23,406 787

i nterest expense 71 550 2,605 464

divldends income 137 405 822 186

equi ty i ncome on i nvestment 6,586 1,471 11,230 0

etc. 390 1,072 8,749 137

Non- operating expense 2,035 2,609 26,462 4,788

i nterest expense 410 252 3,810 1,315

equi ty l oss on i nvestment

0 0 0 2,881

donati on 1,575 754 1,299 590

etc. 50 1,603 21,353 2

Ordinary profit 29,762 15,966 52,392 10,411

before- tax income 29,762 15,966 52,392 10,411

income tax expense 8,001 3,721 12,370 2,091

Net income 8,001 12,244 40,022 8,319