Reply from IPI

Dear Best Western Zafarana Beach Resort Investors Group,

We would like to thank you for your most recent letter. We would especially like to thank for the positive remarks you have made regarding our transparency, integrity and customer services in our dedication to deliver, to the highest possible standards, the Best Western Zafarana Beach Resort. We have great pleasure in answering your questions below as clearly as we can at this moment in time.

Provision of Air Conditioning
As you are aware, the air conditioning system that will be provided will be state of the art; providing cool air in the summer and warm in the winter. Each system, which is digitally regulated, is independent to the apartment it is installed in and can therefore be controlled to the occupants' preference. No units will be visible to the outside of the buildings as these will be placed in the ventilation shafts for the garden and middle apartments and on the roof of the upstairs room in the penthouses. The costings, €3750 for the garden and middle apartments and €4000 for the penthouses will be reimbursed over the five year rental guarantee period through an increased rental return. We believe that this is quite a unique offer to be given by a developer and, although we appreciate your suggestions, we will not amend this.

Effect of Global Economic Downturn
We are in the process of preparing for a financial audit by a third party independent which will look closely at the construction funding being held for the resort. As soon as this is complete we will be able to provide you with the reassurance, from the third party, that all is in order and you have no worries in regard to the financial stability for this project.

Association of Owners
You will be able to tell, from our letter of 6 February 2009, that all of our efforts have been trained on the development of the Best Western Zafarana Beach Resort. We have unfortunately therefore not been able to progress with the AoO. However, we are happy to report that this matter was discussed internally last week and the foundations for an Interest Organisation for Owners are being laid now. We will update you accordingly.

Detailed Site Plan
We do not have an updated site plan available; the main changes are to where buildings will now be located - namely, the beach bar, the sports areas, playground and amphitheatre.

We trust you find this information useful and we will keep you, and all our investors, abreast of developments as they happen.

Met vriendelijke groet / With kind regards,

IPI bedrijvengroep / IPI Group
Maxim van der Tog