Jones Lang LaSalle 2006

CHICAGO, January 30, 2007 – Jones Lang LaSalle Incorporated (NYSE: JLL), the leading integrated global real estate services and money management firm, today reported record net income of $176 million, or $5.24 per diluted share of common stock, for the year ended December 31, 2006. This represents an increase of 70 percent over the prior year’s net income of $104 million, or $3.12 per diluted share. Revenue for the full year 2006 reached $2.0 billion, an increase of 45 percent in U.S. dollars and 43 percent in local currencies from the prior year, and the product of strong growth in all operating segments. Operating income for 2006 was $244 million compared with $132 million for the prior year, an increase of 85 percent. Included in the firm’s 2006 full-year results was an incentive fee from a single client of $112.5 million, or $1.01 per share, at a 41 percent operating income margin. The fourth-quarter strengthening of the pound sterling and euro also contributed approximately $0.16 per share for the year.

For the fourth quarter of 2006, net income was $81 million, or $2.37 per diluted share, compared with net income of $67 million, or $1.99 per diluted share, for the same period in 2005. Revenue for the fourth quarter of 2006 was $704 million, an increase of 41 percent in U.S. dollars and 35 percent in local currencies from 2005, with all segments showing healthy increases. Operating income for the fourth quarter increased 33 percent to $114 million from $86 million in the prior year.



Revenue for the Asia Pacific region on a full-year basis was $337 million, an increase of 24 percent in both U.S. dollars and local currencies, and $124 million for the fourth quarter, an increase of 35 percent in U.S. dollars and 31 percent in local currencies from the prior year. Growth for the full year and fourth quarter in U.S. dollars resulted from both Transaction Services revenue, which increased 22 and 32 percent, respectively, and Management Services revenue, which increased 20 and 38 percent, respectively.

Geographically, the strongest profit contributions were from the region’s largest market, Australia, and from the growth markets of China and Korea. Revenue in Australia grew 22 percent for the year and 26 percent for the quarter, while revenue in China increased 60 percent for the year and 64 percent for the quarter, compared with the prior year. Korea’s revenue for the year was up 69 percent, and finished the year strongly with fourth-quarter 2006 revenue more than double compared with the prior year. India and Singapore also made significant revenue growth contributions. The leading Asian Hotels business recorded a very strong finish in 2006 with revenue almost tripling in the last quarter compared with the prior year and with revenue for the full year up 33 percent as a result of higher transaction volume and increased market share. Offsetting the region’s growth was a decline in Japan, where Capital Markets activity was lower in 2006 compared with 2005, which included several significant closed transactions.

Operating expenses on a full-year basis for the Asia Pacific region increased 26 percent in both U.S. dollars and local currencies, and for the fourth quarter increased 34 percent in U.S. dollars and 30 percent in local currencies, over the prior year. The increase was the result of expansion of the geographic platform, service capabilities and infrastructure throughout the region.

Operating income decreased from $20.0 million in 2005 to $18.6 million in 2006. Included in 2006’s full year results were expenses of approximately $1.7 million for net transition costs incurred to outsource the management of the region’s IT infrastructure, call centers and application development, positioning the region for significant future growth. The 2005 full-year results included a benefit of $2.4 million received from a litigation settlement. Excluding the impact of these items, operating income for the region would have increased from $17.6 million in 2005 to $20.3 million in 2006, with operating income margins flat at approximately six percent. The firm is now well-positioned with a leading market share in the region to capitalize on the anticipated growth.