Urbi is one of the largest housing developers in Mexico and the leader in one of the highest growth regions, the northern part of the country, and the most profitable company in our industry. We are confident that we will establish ourselves as the new leader of the housing industry in Mexico.

Our business model is supported by more than 26 years of hard work and more than 260,000 homes constructed, in high-value integrated communities. It is a replicable system, with cutting-edge technology, that has a great capacity to generate value and support high levels of annual growth over the next five years.

The corporate offices are located in the city of Mexicali, Baja California.

Av. Álvaro Obregón 1137, Col Nueva. C.P. 21100
Mexicali, Baja California. MEXICO

As of December 31, 2007, we employed a total of 4,449 individuals, not including approximately 13,780 construction workers employed by subcontractors that regularly perform construction services for our subsidiaries. All of our subsidiaries employ subcontractors. Of our employees, 3,244 are permanent employees and 1,205 are temporary construction workers who are regularly employed in our housing development and construction.

The Company has two business areas: housing development and land development. Urbi develops and sells its projects through Strategic Business Units (SBUs), some of which are focused on home development while others are focused on land development. These SBUs function as independent profit centers in the areas where they operate. Their objective is to provide the maximum value for the clients while controlling costs, operating margins and managing the working capital. In addition, our SBUs enable the Company to expand efficiently into new markets.

As of December 31, 2007, we had 43 SBUs classified by location and product related to our housing development business. These SBUs have a highly specialized team in each location focusing on sales, mortgage loan individualization and customer service. Each SBU is comprised of 45 to 50 persons and typically manages the sale of between 600 and 1,200 homes annually.

Our operating policy and strategy is to maintain land reserves sufficient to cover our development needs for approximately three years in medium-sized cities and up to seven years in metropolitan areas. We believe that this policy assures continued future operations and affords sufficient time to enable us to negotiate land purchases and financing arrangements upon favorable terms, to obtain all necessary permits for development and to complete infrastructure development and integration with municipal utilities on a timely basis.

UrbiNet is the latest generation technology platform. It offers a complete solution for Urbi's profitable and sustained growth.

This tool includes best practices in terms of operational, financial and management planning as well as control over the processes that make up the housing value chain, for both land development and construction. It reflects the company's experience of more than 26 years.

Urbi seeks to differentiate itself from its competitors through its concept of VidaResidencial™.

This concept is not simply a business phrase, but rather the essence of Urbi's philosophy. It refers to an integrated community that shares rights and obligations in a clean, ordered and high-value residential setting. These communities also seek to foster the growth of the family and wholesome interaction among residents.

Urbi has the following products which are known for their high quality and a strong commitment to client service:

- UrbiVilla (Affordable entry-level housing): Up to Ps.384,000
- UrbiQuinta (Low middle-income housing): From Ps.384,000 to Ps.576,000
- UrbiHacienda (High middle-income housing): From Ps.576,000 to Ps.1.3 million
- UrbiClub (Upper-income housing): More than Ps.1.3 million

Urbi is listed on the Mexican Stock Exchange under the ticker symbol “URBI”.

As of April 28, 2008, the date of our most recent shareholder’s meeting, Urbi had 976’445,286 shares in circulation.

We have not paid dividends on our common stock in the past and do not intend to pay dividends in the foreseeable future. We intend to use earnings from our operations to further develop our business.

Any determination to declare and pay dividends would be subject to approval by the holders of a majority of the common shares represented at an ordinary shareholders’ meeting and would be subject to legal and contractual restrictions.

During the first quarter of 2008, Urbi sold 7,755 units, an increase of 8.2% versus the previous year. Total sales rose 17.6% to reach $2,619.9 million pesos. Gross income grew by 4.0% to $775.7 million pesos. Operating income decreased by 2.6% to reach $504.4 million pesos. EBITDA was $706.5 million pesos, an increase of 18.2% versus the previous year. Finally, net income was $334.1 million pesos, an increase of 8.5% compared to 2007.

As of December 31, 2007 and December 31, 2006, the company had MX$5,503.5 million and MX$4,951.5 million, respectively, in total indebtedness.

The indebtedness level for credit lines and long-term debt increased in MX$522 million in 2007, due the issuance of peso denominated bonds for MX$1,000 million, compensated by the payments performed during the period of other credit lines and bonds. The indebtedness level of the company includes the debt incurred for by its subsidiaries, which are mainly credit lines from banks.

As of December 31 2007, and December 31 2006, the company had MX$5,503.5 million and MX$4,951.5 million of debt, respectively, including MX$8.6 million and MX$9.6 million of guaranteed debt, respectively.

The bonds of 2003 and 2005 currently have the following ratings: “mxA-“ by Standard & Poor´s, and “A(mex)” by Fitch Mexico SA de CV. The 2007 bond is currently rated as “A3.mx” by Moody’s and “A(mex)” by Fitch Mexico SA de CV.