HOTEL CONCEPTION AG EURO 1, Blegistrasse 1, CH-6343 Rotkreuz

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Executive Summary

Project Name:

Kempinski Bellevue Trochetia

Hotel & Golf Resort

Mauritius

HOTEL CONCEPTION AG

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Preamble:

The intention of this document is to in-

form about the basics in a brief form in

addition to the attached documentation

and to outline the necessary steps to

be taken in the near future to secure

the project and its prosperous possibilities.

HOTEL CONCEPTION AG

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SHORT OUTLINE OF THE PROJECT’S HISTORY 1997 • First negotiation with the site owner.

• Extensive preparation work on the site, surveys, architec-

tural project studies and a detailed Environmental – Impact

Assessment were carried out.

• Official offer received for the purchase of 150 hectares -

the potential building site.

1998 • Official offer received from the government to lease addi-

tional 152 hectares of land

• Permit to export dividends tax free was granted.

• Foundation of the Project company Bellevue Trochetia Ho-

tel (Mauritius) Ltd.

• General approval from the government to purchase the

site and to erect the full project without Mauritian partners.

Exceptional and unique permit as in general the law indi-

cates the participation of Mauritian investment of 51%.

• The corporate tax payments were reduced from 35% to

15% for a period of 10 years to start with. Extension nego-

tiable.

• Import duty-free license for all goods, transport materials,

construction and operational materials granted.

• Modification of the zoning plan (EIA-License) was granted.

The farm- and protection-site became a building site.

• Environmental-Protection-License received.

HOTEL CONCEPTION AG

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• Final development – approval granted.

• TVA (VAT)–License received, which enables to recuper-

ate all VAT accruing during the construction and pre-

opening period from the VAT tax payable of the later hotel

operation. Cash value approx. US $ 6-7 million.

1999 • Signing of the Operation & Management Agreement with

Kempinski Hotel & Resorts S.A., Geneva.

• Verbal approval of the government to explore part of the

“Ile aux Benitiers” in front of the site as a private bathing

and water sport center.

• At the end of the year the validity of all permits and li-

censes are confirmed by the government.

Since December 1999 we are in extensive negotiations with both - the present sole

shareholder of the Project Company and the owner of the potential building site. We

were able to build up excellent relationship to both, the project company and the site

owner, the major part of the old and new government, to high rank officials, to all im-

portant official institutions, essential for the project, as well as to very influential fami-

lies on the island. We do enjoy the full support of the government and the local politi-

cians as we not only create an important number of jobs during the construction

phase but also about 750 constant jobs, which will secure the well-being of some

2.500 – 3.000 people of the nearby villages and the rest of the island. This represents

an important and unique assurance for the smooth and efficient realization of the pro-

ject during the construction - as well as the operational period.

HOTEL CONCEPTION AG

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The projections for the start up financing (annex 1), the construction phase annex 2

page 7) and the operational period (annex 3) have been compiled and controlled by

several independent institutions and are judged as realistic - in the operational results

even conservative.

The project itself needs to be revised and optimized as the investigations of our ex-

pert team have in fact shown some week points as well the chance to optimize the

whole logistics for the later operation. One even more important factor will be the

possibilities to reduce construction costs and therefore raise the ROI and in return

also the profits when selling the complete property at a later stage. In order not to lose

any time we have gathered a team of experts and have negotiated the necessary

agreements.

A preliminary financial forecast for the start-up has been elaborated including the firm

offer of the former project company as well as the fees for our past and future in-

volvement in the project. The cash flow has been added to show the volume of funds

necessary in the nearby future.

Following our negotiations and the findings of our latest surveys we have listed below

the steps to be taken in not to distant future:

HOTEL CONCEPTION AG

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FACT SHEET

Kempinski Resort & Hotel Bellevue Trochetia

MAURITIUS

Location Le Morne Brabant, South West on the Island of Mauritius, Indian Ocean

Site purchase

1.500.000 M2 for US $ 11,5 million

Site leasehold 1.500.000 M2 at US $ 30,000 p. a.

Description Resort & Hotel § 2 Royal suites, approx. 250 M2 each § 18 VIP suites, approx. 200 M2 each § 84 Senior suites, approx. 150 M2 each § 20 Family suites, approx. 150 M2 each § 120 Junior suites, approx. 90 M2 each

244 suites in total

§ 5 restaurants § 4 bars § beauty center with wellbeing center § public full size casino § tennis courts § horse riding stables § 5 pools § all water sport and beach activities § 18 hole PGA Championship Golf Course + 9 hole Junior

Golf Course

Total Investment US $ 110.000.000

Permits & Licences

§ Unique/Special Investment permit § VAT permit already in power (represents tax-benefit of

approx. US $ 8 million) § Reduced corporate tax from 35 % to 15 % § General construction permits § Tax free import of all construction material, FF & E and

other goods such as transport material etc. § Environmental-Impact-Assessment § Dividends tax free

Construction timeframe 18 month

Average ROI p.a average 10,7 % for the first 5 years*

*Before Amortisation, Depreciation interests on loans, taxes and insurances

HOTEL CONCEPTION AG

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FACT SHEET

Kempinski Resort & Hotel

Bellevue Trochetia MAURITIUS

Profit and Loss first 5 years based on the worst case study (average occupancy in 5-star hotels on Mauritius 83 %, average room rate US $ 495) Year 1 2 3 4 5

244 244 244 244 244

55% 61% 65% 69% 72%

340.00 359.00 373.00 388.00 405.00

27'505 31'529 34'733 37'999 41'025

8'948 10'518 11'924 13'180 14'197

8.1% 9.6% 10.8% 12.0% 12.9%

Gross Return on Total Investment

Net ROI

Total Available Units

Average Occupancy

Average Rate per Room (in USD)

Total Revenue (in 1000 USD)

*Before Amortization, Depreciation interests on loans, taxes and insurances

Construction phase

Specification of the Investment- & construction costs (all figures are in thousends of US$)

FIX ASSETS 4.Q 00 1.Q 01 2.Q 01 3.Q.01 4.Q 01 Total 01 1.Q 02 2.Q 02 3.Q.02 4.Q 02 Total 02 Total1 Property 14'900 2'100 2'000 2'000 2'000 8'100 2'000 2'000 2'000 800 6'800 14'9002 Property-Development / Preparatory work 3'970 2'000 1'000 970 3'970 0 0 3'9703 Constructions hotel & comercial area 62'000 350 400 8'000 8'000 8'000 24'750 10'000 10'000 8'000 9'250 37'250 62'0004 Golf-course 10'600 2'500 2'500 2'000 2'000 2'000 2'100 8'100 10'6005 Other costs 3'800 100 200 300 500 1'100 500 500 800 900 2'700 3'8006 Preopeningcosts 3'900 500 500 500 800 1'000 1'100 3'400 3'9007 Development/Consultancy/Controlling 3'300 100 1'000 1'000 2'100 1'200 1'200 3'3008 Safety reserve/unexpected costs 1'700 1'000 1'000 700 700 1'7009 Costs for financing (constructionperiod) 3'300 50 100 200 400 750 500 700 700 650 2'550 3'300

10 Rounding 2'530 0 2'530 2'530 2'530

Total Investment 110'000 2'550 1'550 12'300 11'500 16'870 44'770 15'500 16'000 14'500 19'230 65'230 110'000

HOTEL CONCEPTION AG

Supporting Document to the start-up Budget Kempinski Bellevue Trochetia Hotel & Resort, Mauritius

All in US $

PAYROLL • Salaries& Wages Security 200,00 Secretary 700,00 OTHER EXPENSES • Personal Cost Approx. 29% of total S & W • Uniforms Watchmen site • Contract Cleaning for office and housing • Postage & Telegram Assumption also for UPS + DHL etc. • Telephone, e-mails Assumption for data transfers and communications • Printing + Stationary Company's start up stationary, presentations to offi-

cial bodies, investors. • Travel Expenses local Traveling in Europe of involved persons for meetings

etc. incl. hotels, f & b and misc. 5 - 7 persons x 7 trips x DM 1.000,00

• Travel expenses international Trips to Mauritius and South Africa of persons in-volved incl. hotel, f & b and misc.

Month 1 5-7 people/trips to Mauritius + S.A. x approx. 5.500,00 Month 2 2 people/trips to Mauritius x approx. 2.500,00 Month 3 4 people/trips to Mauritius x approx. 2.500,00 Month 4 2 people/trips to Mauritius x approx. 2.500,00 Month 5 4 people/trips to Mauritius x approx. 2.500,00

• Entertainment Internal Entertainment during meetings in Europe with in-volved people, investors and politicians from Mauri-tius.

• • Entertainment External Entertainment in Mauritius and S.A. for involved peo-ple, politicians and VIP's, press conference etc.

• • Laundry internal cost of laundry for traveling people • • Dry Cleaning cost of dry cleaning for traveling people • Transportation Taxi, car rental, petrol Mauritius • Decoration Flowers etc. for offices • Print Shop printing of plans, promotional material • Miscellaneous general reserves for office equipment and on the

above accounts.

HOTEL CONCEPTION AG

• VIP Service Helicopter flights, presents, gifts etc. • Housing housing in Mauritius and Europe • Rentals Office in Mauritius • Local Transport Taxi, car rental, petrol Europe • Leasing Office Office rental in Europe incl. misc. cost • Leasing car cars in Europe and Mauritius. INVESTMENT PROJECT • Architect following the attached contract with T. Krause

Bohne & Partner considering that the total financing will be in place at the end of month 5.

• Interior Architect following the attached contract with Holstein Schulhof & Partner considering that the total financing will be in place at the end of month 5.

• Technical Advisors not yet closed agreements with special ad visors for themes not covered by the hired specialists based on the fee principals of the other specialists.

• Technicians following the attached contract with Holstein Schul-hof & Partner considering that the total financing will be in place at the end of month 5.

• Owners Representatives misc. costs for the site owner, developer and in-vestors.

• Lawyers cost of forming the company in Mauritius and misc. consultations.

• Legal Advisors consultants for various licenses and permits still to be negotiated as well as the site purchase down pay-ment.

• Tax Advisors bookkeeping and misc. consultations in Mauritius. • Construction Start Up soil movement Golf course, geological expertise hotel

site and cosmetic/political activities on site. • Down payment former pro • ject company down payment on the agreed US $ 3,3 million. • • Down payment Site Purchase down payment on the yet to be agreed final price for

the site • Down payment for Project • Consulting & Organization down payment on 3% fee of the project cost • Others Reserves for special programs, charity, donations

etc.

Kempinski Bellevue Trochetia Hotel & Golf Resort, MauritiusCase 3 taking into consideration the revenue "Extra rooms in the Senior and Family-Suites" IN US $ 000`s

Year 1 Year 2 Year 3 Year 4 Year 5

DaysTotal Days of Operation 365 365 365 365 365

RoomsTotal Available (Keys) 244 244 244 244 244Occupancy 68% 73% 77% 79% 82%Total Occupied / Year 60'561 65'014 68'576 70'357 73'029Average Rate in US$ 420 450 475 495 505Double Occupancy 85% 85% 85% 85% 85%Total Available Extra rooms 124 124 124 124 124Occupancy 50% 55% 60% 64% 66%Total Occupied / Year Extra rooms 22'630 24'893 27'156 28'966 29'872Average Rate per extra room in US$ 100 105 110 155.5 155.5Double Occupancy Extra rooms 40% 40% 40% 40% 40%RevPAR 311 358 399 442 466Total Overnights 143'719 155'126 164'884 170'714 176'924

F&BAverage Check US$ 90 95 105 112 121

RoomsRevenue 27'625'536 100% 31'446'210 100% 35'201'695 100% 37'545'913 100% 39'779'746 100%Payroll 1'243'149 4.5% 1'352'187 4.3% 1'513'673 4.3% 1'614'474 4.3% 1'710'529 4.3%Other Expense 4'005'703 14.5% 4'402'469 14.0% 4'928'237 14.0% 5'256'428 14.0% 5'569'164 14.0%

Department Profit 22'376'684 81.0% 25'691'554 81.7% 28'759'785 81.7% 30'675'011 81.7% 32'500'052 81.7%F&B

Revenue 12'934'753 100% 14'736'944 100% 17'312'859 100% 19'119'985 100% 21'407'835 100%Cost of Sales 4'527'164 35.0% 5'157'931 35.0% 5'886'372 34.0% 6'500'795 34.0% 7'064'586 33.0%Payroll 1'746'192 13.5% 1'915'803 13.0% 2'250'672 13.0% 2'485'598 13.0% 2'783'019 13.0%Other Expense 1'616'844 12.5% 1'856'855 12.6% 2'164'107 12.5% 2'332'638 12.2% 2'611'756 12.2%

Department Profit 5'044'554 39.0% 5'806'356 39.4% 7'011'708 40.5% 7'800'954 40.8% 8'948'475 41.8%M.O.D.

Revenue 7'500'750 100% 7'900'000 100% 8'150'000 100% 8'250'000 100% 8'500'000 100%Cost of Sales 1'275'128 17.0% 1'501'000 19.0% 1'548'500 19.0% 1'567'500 19.0% 1'615'000 19.0%Payroll 622'562 8.3% 711'000 9.0% 733'500 9.0% 742'500 9.0% 765'000 9.0%Other Expense 982'598 13.1% 1'066'500 13.5% 1'100'250 13.5% 1'113'750 13.5% 1'147'500 13.5%

Department Profit 4'620'462 61.6% 4'621'500 58.5% 4'767'750 58.5% 4'826'250 58.5% 4'972'500 58.5%Total Revenue 48'061'039 100% 54'083'154 100% 60'664'554 100% 64'915'898 100% 69'687'581 100%Gross Operating Income 32'041'700 66.7% 36'119'410 66.8% 40'539'243 66.8% 43'302'215 66.7% 46'421'028 66.6%Administration & General 3'844'883 8.0% 4'326'652 8.0% 4'549'842 7.5% 4'933'608 7.6% 5'226'569 7.5%Marketing 2'883'662 6.0% 3'082'740 5.7% 3'154'557 5.2% 2'986'131 4.6% 3'135'941 4.5%Repairs & Maintenance 2'883'662 6.0% 3'244'989 6.0% 3'336'550 5.5% 3'570'374 5.5% 3'832'817 5.5%Energy Costs 2'643'357 5.5% 3'515'405 6.5% 3'943'196 6.5% 4'219'533 6.5% 4'599'380 6.6%Gross Operating Profit I 19'786'135 41.2% 21'949'623 40.6% 25'555'098 42.1% 27'592'567 42.5% 29'626'321 42.5%Reserve for FF&E 1'682'136 3.5% 2'163'326 4.0% 3'033'228 5.0% 3'440'543 5.3% 3'484'379 5.0%… - - - - - Gross Operating Profit II 18'103'999 37.7% 19'786'297 36.6% 22'521'870 37.1% 24'152'025 37.2% 26'141'941 37.5%

Incentive Fee (% GOP) 15% 15% 15% 15% 15%Incentive Fee 2'715'600 5.7% 2'967'945 5.5% 3'378'281 5.6% 3'622'804 5.6% 3'921'291 5.6%Owner's Return 15'388'399 32.0% 16'818'352 31.1% 19'143'590 31.6% 20'529'221 31.6% 22'220'650 31.9%

Kempinski Bellevue Trochetia Hotel & Golf Resort, MauritiusCase 3 taking into consideration the revenue "Extra rooms in the Senior and Family-Suites" IN US $ 000`s

Year 1 Year 2 Year 3 Year 4 Year 5Owner's Return 15'388'000 16'818'000 19'144'000 20'529'000 22'221'000 Depreciation in % of owners return 10% 1'539'000 1'682'000 1'914'000 2'053'000 2'222'000 Insurance in % of owners return 3% 46'000 50'000 57'000 62'000 67'000 Subtotal 13'803'000 15'086'000 17'173'000 18'414'000 19'932'000 Coorperated taxes of subtotal 15% 2'070'000 2'263'000 2'576'000 2'762'000 2'990'000 Net Owner's Return 11'733'000 12'823'000 14'597'000 15'652'000 16'942'000 + Depreciation 1'539'000 1'682'000 1'914'000 2'053'000 2'222'000 Net Cashflow 13'272'000 14'505'000 16'511'000 17'705'000 19'164'000

NET PRESENT VALUE OF EXPECTED NET CASH INFLOWS FROM THE HOTEL OPERATION

Investment of USD

end of year Cash Outflow Net Cash Inflow IFp at ICC

Cash Inflows Impact on NPV

8%1 31.12.01 -45'000'000 { } 1.00000 -45'000'000 -45'000'000 2 31.12.02 -65'000'000 { } 1.00000 -65'000'000 -110'000'000 3 31.12.03 13'272'000 0.92593 12'288'889 -97'711'111 4 31.12.04 14'505'000 0.85734 12'435'700 -85'275'412 5 31.12.05 16'511'000 0.79383 13'106'964 -72'168'447 6 31.12.06 17'705'000 0.73503 13'013'704 -59'154'744 7 31.12.07 19'164'000 0.68058 13'042'696 -46'112'047 8 31.12.08 19'164'000 0.63017 12'076'571 -34'035'477 9 31.12.09 19'164'000 0.58349 11'182'010 -22'853'467

10 31.12.10 19'164'000 0.54027 10'353'713 -12'499'754 11 31.12.11 19'164'000 0.50025 9'586'771 -2'912'983 12 31.12.12 19'164'000 0.46319 8'876'640 5'963'65713 31.12.13 19'164'000 0.42888 8'219'111 14'182'76814 31.12.14 19'164'000 0.39711 7'610'288 21'793'05715 31.12.15 19'164'000 0.36770 7'046'563 28'839'62016 31.12.16 19'164'000 0.34046 6'524'595 35'364'21517 31.12.17 19'164'000 0.31524 6'041'292 41'405'50718 31.12.18 19'164'000 0.29189 5'593'789 46'999'29619 31.12.19 19'164'000 0.27027 5'179'434 52'178'73020 31.12.20 19'164'000 0.25025 4'795'772 56'974'502

110'000'000

NET Present Value

no interests the first 2 years