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IRSA Inversiones y Representaciones Sociedad Anonima Announces Results for the Six-Month Period of FY 2012 Ended December 31, 2011

    --  IRSA's revenues for the first six months of 2012 increased 6% to ARS
        739.6 million, and EBITDA grew 19.3% to ARS 453.0 million.
    --  The Shopping Center segment continues to show significant growth in
        terms of revenues and EBITDA, of 31.8% and 37.9% respectively, reaching
        an EBITDA/Sales ratio of 80% and occupancy levels close to 98%.
    --  As concerns the Office segment, revenues and EBITDA increased by 11.6%
        and 22.1% respectively, reaching an occupancy rate of 96% in the second
        quarter of fiscal year 2012 and higher rental price levels.
    --  Net income for the second quarter of 2012 was ARS 127.4 million, a 11.4%
        increase compared to the net income recorded in the same period of the
        previous fiscal year and a substantial improvement from the ARS 5.7
        million income recorded in the previous quarter. This improvement is
        explained mainly by the increase in operating income, higher income from
        Banco Hipotecario and the appreciation in the market value of the option
        held by IRSA in Hersha Hospitality Trust as a consequence of the 41%
        increase of its stock price during the quarter. For the first six months
        ended December 31, there was a fall in net income of 22%.
    --  After the closing of the first six months of fiscal year 2012, IRSA,
        through its subsidiary Real Estate Strategies, L.P., entered into an
        agreement with Supertel Hospitality Inc. (NYSE:SPPR) for the purchase of
        3,000,000 convertible preferred shares to be issued by Supertel for an
        aggregate amount of US$ 30 million.
    --  During the month of November, a cash dividend of ARS 211.6 million was
        made available, equivalent to a dividend yield of 8.6% at the time of
        its announcement, an amount per share of ARS 0.366 and an amount per ADR
        of ARS 3.66.
    --  On February 10, 2012, the Company closed the period for subscribing
        Notes for a total amount of ARS 300 million through public offering in
        Argentina. The proceeds will be used to repay short term debt and for
        working capital purposes.

HIGHLIGHTS

    Six month period of Fiscal Year 2012 Financial Highlights
    (In thousands of Argentine Pesos)
    Ended December 31, 2011

                                                 12-31-11      12-31-10

      Total sales                                 739,613       697,675
       Operating Income                           366,103       300,683
        Net Income (Loss)                         133,052       170,558
        Net Income per GDS                           2.30          2.95

                                                 12-31-11      12-31-10
        Total Current Assets                    1,067,046     1,045,180
        Total Non Current Assets                5,354,975     5,270,130
        Total Assets                            6,422,021     6,315,310
        Short-Term debt                           792,174       683,813
        Total Current Liabilities               1,401,534     1,305,757
        Long-term debt                          1,840,947     1,756,919
        Total Non Current Liabilities           2,275,878     2,210,912
        Total Liabilities                       3,677,412     3,516,669
        Minority interest                         315,304       316,826
        Shareholders' Equity                    2,429,305     2,481,815

IRSA Inversiones y Representaciones S.A. (NYSE: IRS, BASE: IRSA) is Argentina's largest, most well-diversified real estate company, and it is the only company in the industry whose shares are listed on both the Bolsa de Comercio de Buenos Aires and The New York Stock Exchange. Through its subsidiaries, IRSA manages an expanding top portfolio of shopping centers and office buildings, primarily in Buenos Aires. The company also develops residential subdivisions and apartments (specializing in high-rises and loft-style conversions) and owns three luxury hotels. Its solid, diversified portfolio of properties has established the Company as the leader in the sector in which it participates, making it the best vehicle to access the Argentine real estate market. Additionally, IRSA owns a stake in Banco Hipotecario, Argentina's largest mortgage supplier in the country.

A LONGER VERSION OF THIS PRESS RELEASE WITH DETAILED INFORMATION IS AVAILABLE ON THE WEB SITE: WWW.IRSA.COM.AR

IRSA cordially invites you to participate in its six month FY 2012 Results Conference Call on Thursday, February 16, 2012 at 08:00 a.m. Eastern Time

To participate, please call:

888-734-0544 If you are in the US or

+1-706-758-3363 for international calls

To access the webcast, click on the link below:

http://webcast.mz-ir.com/publico.aspx?codplataforma=3567

SOURCE IRSA Inversiones y Representaciones Sociedad Anonima