OFFER

OF INVESTMENT PARTICIPATION IN “FAVORIT” HOUSING ESTATE BUILDING AT THE ADDRESS:

4, ARTILLERIYSKAYA STR., ODESSA CITY, UKRAINE.

PROJECT DESCRIPTION. LOCATION

The project provides the building of housing estate, consisting of four 18-storied houses for 448 apartments, built-in integrated office premises, situated in the first floor level, underground parking for 213 card and detached administration building. Housing estate is situated in Odessa city on Artilleriyskaya Str., 4.

TECHNICAL AND ENGINEERING CHARACTERISTICS OF THE ESTATE

Description Unit Quantity

Land lot area Hectare 1,58

Building territory area m2 9451,27

Total area of apartments m2 28514,36

Total quantity of apartments, including: piece 448

1-room piece 180

2-roomed piece 180

3-roomed piece 72

4-roomed piece 12

5-roomed piece 4

Total area of office premises m2 2095,9

Total area of administrative building m2 494

Total area of parking lots m2 7565,03

Parking capacity, including: place 213

- single, with area up to 20 m2 piece 142

- single, with area up 25 m2 piece 17

- double, with area up 40 m2 piece 27

Overland parking piece 90

CORPORATIVE STRUCTURE AND TITLE

• The project belongs to the company “ZHILYEPROMSTROY” Limited Liability Company (32696339), which was established specially for the project realization and has no other business, is free from any other liabilities except of the ones relating to the present project.

• The land lot with area of 15289 square meters, situated to the address: 4, Artilleriyskaya Str., Odessa city, cadastral number 5110137300:51:008:0037, is the property of “ZHILYEPROMSTROY” LLC on the grounds of rent contract with Odessa city council as of 15.11.2005.

• There were obtained all required permits and endorsements regarding the estate, entitling its buildings, including:

• Positive expert’s report of the Ukrainian State investment expertise in respect of building project № 539/06 as of 26.03.2007.

• Permit for construction work in the Inspection of State Architectural construction control of Odessa city №142/07 as of 2.04.2007.

• On the grounds of Decision of Odessa city council № 285 as of 29.06.2005 there was concluded building leasehold agreement, binding “ZHILYEPROMSTROY” LLC to assign 12% of residential space from the total area of apartments to the City council.

• For the purpose of mobilization of investment from buyers there were emitted specialized bonds , which clearance is stipulated by the release terms by apartments, office premises and parking lots. Bonds emitting was registered in the State commission on securities and stock market on 08.06.2007.

PHOTOS OF EXISTING BUILDING

TOTAL SUM OF REQUIRED CAPITAL INVESTMENT

Expense items Sum, $

Completion of estate construction 11 283 000

Administrative costs 78 770

Object insurance 32 468

Commissioning costs 51 948

TOTAL 11 446 186

PROJECT INCOME

Description Unit Quantity* Price Cost

Apartments** m2 13 275 $1 256 $16 675 000

Offices m2 2095,9 $1 737 $3 640 210

Administration building m2 494 $2 200 $1 086 800

Underground parking lots

- single, with area up to 20 m2 Piece 137 $15 000 $2 055 000

- single, with area up 25 m2 Piece 16 $20 000 $320 000

- double, with area up 40 m2 Piece 26 $25 000 $650 000

Overland parking Piece 90 $4 417 $397 500

TOTAL $24 824 510

* quantity of areas in the Housing estate, free from liabilities** in view of 12% of residential premises to be assigned to the City council.

PROJECT PROFIT

Description Sum, $

Total project income*$25 434 796

Total project expenses$13 508 810

Project profit$11 925 986

* As of today there are concluded agreements for apartment sale in the estate, where paying out is on phase basis and the total agreement sum has not been redeemed. The total sum of such payments – $ 610 286,with the repayment period till the end of the building.

FINANCING AND COMMERCIAL OFFER

• This project provides formation of loan capital according to 7,5% yearly rate at the in quantity of $11 065 000 by tranches over a period of one year. Security will be the incompleted construction object.

• Alternative – 50% entry into the share capital. Investment commitments of the Investor imply fulfillment of construction work financing and commissioning the object, $11 446 186. Subject to this, return of investments at the rate of $11 446 186 will be in the first place from income of real estate realization, and afterwards the distribution of project profit will be on 50:50 basis.

Investor’s contributions profitability indices in case of entering into sharing capital on 50% basis

Net present value $2 962 195

Project payback period, months 36

Internal return of return of project, % in month 1,88%

Internal return of return of project, % per annum 25,08%

Profitability index 1,29

Discounting interest rate, % per annum 10,00%

Contact details:

ASSET MANAGEMENT COMPANY «ATLANTA»

Toropov Andrew

Tel./Fax: +38 (048) 785-51-50

+38 (067) 59-00-876

E-mail: kya@atlanta.ua