Results reflect the company’s strong performances across all global business lines

Dubai, August 20, 2006: Nicholas Maclean, Managing Director, CB Richard Ellis Limited, Middle East, has expressed his delight over the solid 48% per share increase for the quarter ended June 30, 2006 in shares of their parent company CB Richard Ellis Group, INC.

“CBRE’s success can be attributed to the fact that it possesses an intimate knowledge of virtually every major market in the world,” said Maclean. “Whether it’s a local or global assignment, CB Richard Ellis prides itself on providing the vital information needed to anticipate market opportunities, seize competitive advantages and execute the best possible real estate strategies.”

This is a strong showing for CB Richard Ellis especially since it quickly follows the company being voted as the number one brand in commercial real estate by the Lipsey group’s globally conducted independent survey.

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Los Angeles, CA :
CB Richard Ellis Group, Inc. (NYSE:CBG) reported their second quarter 2006 diluted earnings per share was $0.34, an increase of 48% from the $0.23 earned in the second quarter of 2005; (this, after excluding one-time charges due to extinguishment of debt.) The company also reported revenue for the second quarter ended June 30, 2006 of $836.2 million, up 24% over the second quarter of 2005, and diluted earnings per share of $0.27 for the second quarter ended June 30, 2006, compared with $0.22 for the same quarter last year.


Second Quarter Highlights
For the second quarter of 2006, the Company generated revenue of $836.2 million, up 24.4% over the $672.2 million posted in the second quarter of 2005. The Company reported net income of $64.3 million, or $0.27 per diluted share, in the second quarter of 2006 compared with net income of $50.4 million, or $0.22 per diluted share, in the second quarter of 2005.

Excluding one-time items, the Company would have earned net income2 of $79.2 million, or $0.34 per diluted share, in the second quarter of 2006, an increase of 48.0% and 47.8%, respectively, compared with net income of $53.5 million, or $0.23 per diluted share, in the second quarter of 2005.

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) 3 totaled $147.0 million for the second quarter of 2006, an increase of $40.5 million, or 38.0%, from the same quarter last year.

The Company’s second quarter results continue to reflect strong performance across virtually all business lines and geographies, as well as contributions from acquisitions. Of the 24.4% revenue growth, approximately two-thirds was due to organic growth and one-third was attributable to acquisitions completed in 2005 and earlier in 2006. The double-digit organic growth was fueled by notably improved leasing activity in most major markets, continued strength in investment sales as well as increased revenue in the appraisal/valuation, mortgage brokerage, property and facilities management and investment management operations.

During the second quarter of 2006, the Company repurchased the remaining $164.7 million in aggregate principal amount of its outstanding 11¼% senior subordinated notes at a premium of $9.3 million. This repurchase combined with the new $600.0 million revolving credit facility, which fully replaced the former facility on more favorable terms, will reduce annual interest expense by approximately $25.0 million.

Six-Month Results
Revenue was $1.5 billion for the six months ended June 30, 2006, up $305.9 million, or 25.3%, compared to the same period last year. Approximately two-thirds of the improvement was due to organic growth, while acquisitions completed in 2005 and earlier in 2006 drove the remainder of the revenue increase. The Company reported net income of $101.2 million, or $0.43 per diluted share, for the six months ended June 30, 2006 compared to net income of $65.0 million, or $0.28 per diluted share, in the same period last year.

Excluding one-time items, the Company would have earned net income of $119.3 million, or $0.51 per diluted share, for the six months ended June 30, 2006, up 64.5% and 59.4%, respectively, over net income of $72.5 million, or $0.32 per diluted share, for the six months ended June 30, 2005.

EBITDA was $229.7 million for the six months ended June 30, 2006, up $72.9 million or 46.5% compared to the same period last year.

Management’s Commentary
“Our overall business continues to perform very well. Commercial real estate markets worldwide have good momentum, and the combination of people, brand and platform has enabled us to continue to gain market share,” said Brett White, CB Richard Ellis’ President and Chief Executive Officer. “As expected, the growth rate seen in the U.S. investment sales market has eased back to a more orderly and sustainable rate of growth compared with the heated growth trends of 2004 and 2005, but still reflects a solid year-over-year increase. Supported by expanding employment rolls, the U.S. leasing market continued to improve, seeing higher occupancy and increased rental rates in many business districts across the country. At the same time, our Asset Services and Corporate Services businesses are growing strongly, fueled by the global outsourcing trend. Overseas operations, led by Europe, continue to turn in robust results, as strong organic growth is being augmented by strategic in-fill acquisitions that expand the scope and reach of our service offerings.”

EMEA Region
Revenue for the EMEA region, mainly consisting of operations in Europe, increased 38.3% to $170.3 million for the second quarter of 2006, compared with $123.1 million for the second quarter of 2005. Organic revenue growth accounted for slightly more than half of this increase, with the remainder coming from acquisitions completed in 2005 and earlier in 2006. Operating income for the EMEA segment totaled $32.5 million for the second quarter of 2006, compared with $10.7 million for the same period last year. Excluding the impact of one-time items, operating income for the EMEA region would have been $33.0 million for the second quarter of 2006, an increase of $21.6 million, or 190.9%, from the second quarter of last year. EBITDA for the EMEA region totaled $35.8 million for the second quarter of 2006, an increase of $22.8 million, or 175.5%, from last year’s second quarter. These improvements were primarily driven by significantly higher leasing activities, a continued strong investment sales environment, higher appraisal/valuation revenues and operating leverage.
Notes to editor:
About CB Richard Ellis
CB Richard Ellis Group, Inc. (NYSE:CBG), a FORTUNE 1000 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2005 revenue). The Company serves real estate owners, investors and occupiers through more than 350 offices (including affiliate and partner offices) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; mortgage banking; investment management; appraisal and valuation; and research and consulting. Please visit our Web site at www.cbre.com.

Lina Anani
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