SFL Reorganizes the Board of Directors and Opens a Data Room for Investment Corporation of Dubai

Regulatory News:

The Board of Directors of Societe Fonciere Lyonnaise (Paris:FLY)
met yesterday night and noted the resignation from their positions as
directors of Mr. Portillo Munoz, Mr. Carabante de la Plaza, Mr.
Gonzalez Villarejo, Mr. Nozaleda Arenas, Mr. Prado Perez-Seoane, Mr.
Diaz de Mera and Mrs. Valero Perez. These directors recently resigned
from the Board of Directors of Colonial, the majority shareholder of
SFL.

To replace the directors who have resigned, the Board has co-opted
Mr. Enrique Montero Gomez, Mr. Juan Ramirez Baltuille, Mr. Pedro
Ruiz-Labourdette, Mr. Julian Zamora Saiz, Mr. Josep Manuel Basanez
Villaluenga and Mr. Antonio Lopez Corral. These new directors of SFL
are also directors of Colonial. The ratification of their appointment
will be put to the next annual general meeting of shareholders.

The Board elected Mr. Mariano Miguel Velasco, Chairman of the
Board of Directors of Colonial, to replace Mr. Luis Manuel Portillo
Munoz as chairman of SFL.

These Board changes do not impact the Executive Management of SFL
which remains under the responsibility of Yves Mansion, Director and
Chief Executive Officer and Philippe Depoux, Managing Director.

The Board has also been informed of the on-going discussions
between ICD - Investment Corporation of Dubai and certain of the
shareholders of Colonial and the opening of a due diligence period
prior to a possible tender offer on Colonial. Given the fact that,
should these discussions have a positive outcome, they should result
in a mandatory tender offer being launched on SFL, the Board has
granted access to a data room to ICD. SFL is advised by Orrick Rambaud
Martel and BNP Paribas.

A financial press release scheduled for February 15, 2008 will
detail the 2007 annual accounts of SFL.

With an exceptional portfolio of properties valued at some EUR 3.9
billion net of transfer costs, essentially located in the Paris
Central Business District, SFL is a preferred vehicle for investors
wishing to invest in the Paris office and retail property market. As
the leading player in this market, the Group is firmly focused on
pro-actively managing high-quality property assets. SFL has elected to
be taxed as an SIIC since 2003.

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