Latest Newsletter

In addition to some new photos published on the IPI site, here is a a short summary of the latest newsletter:

• In week 12 and 13 IPI inspected the resort and agreed on a schedule of work till week 20. The number of construction workers is to be expanded to around 150.
  
  
• Investors will be informed of the completion date two weeks prior to completion of the apartment, after which investors will have one month to conduct inspection / snagging.
  
  
• Only about 30% of owners have signed up with MONDI so far; those of who haven’t applied yet are urged to do so by sending an email to aftersales@ipibv.eu

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Accesing the MONDI website

go to http://www.mondi.nl/

login using top right of screen (Username = your email, and password = Zafaranaxxx, supplied by MONDI)

click on 'kopersbelangen' on left menu bar (under heading 'forum')

click on 'more info' under the 'Zafarana Beach Resort (English version)' section

Now click on the 'Go to the forum' link

You can post questions and comments in the little box at the bottom (click on 'Plaatsen') to submit

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Progress Report

With a bit of luck, now that new sub-contractors are in place we will see good construction progress. Let’s hope the engineer, Amr Foad will ensure the finishing is to a high standard. Photos around the end of March should give us a pleasant surprise on the progress and quality of finish!

Full text of email from IPI below:

Further to our last update to you on 6 February where we advised you of the situation in regard to the sub-contractors, we would like to update you on the latest developments.

The new sub-contracts have surveyed the work done to date and it was concluded that a small amount of work would need to be rectified. We are pleased to announce that the new sub-contractors have been employed by IPI and that they started work on 4 March 2009 with production over the coming weeks being increased. The new sub-contractors will be overseen by both the IPI Board of Directors and our engineer, Amr Foad, who specializes in finishings, to ensure that works run smoothly.

In week 13 the IPI Board of Directors will be on site to check the sub-contractors progress. Photographs will be taken and, on the Board's return, will be posted on our website for your information and perusal.

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Report by MONDI

The following report by MONDI dated 3 March 2009 may be of interest to investors:

Over the past few weeks, concerned investors in the Best Western Zafarana Beach Resort have been in contact with us. We fully understand their concerns, especially as a firm completion date can not yet be given.

There has been increased speculation in regard to the resort and in particular that the financial position of IPI could be a problem. Should IPI lack financial means, then this would endanger the completion of the project and client's investments could be at risk. Therefore, IPI took the initiative to request us to inform the investors of IPI's financial status and to conduct a financial audit on their accounts. After due consideration of what is needed to complete the project and the (copy) bank statements we can conclude that IPI is not in financial difficulties.

There is no point to speculating about the problems with the contractors. The main importance to all investors is that the building activities will soon be resumed and that the standard of finish is good. The construction will recommence as soon as all formalities have been concluded with the new contractor. Mondi has monitored IPI's board of directors, who are cooperating fully by providing confidential and strategic in formation. Mondi has had to sign a statement of secrecy to that effect.

We understand that there are numerous questions amongst the investors. For all these questions we refer you to the Q&A-module on www.mondi.in. All investors of Zafarana Beach Resort will be offered membership to Mondi. Members of the Mondi interest group can ask unlimited questions as well as see questions raised by other investors. Through experience we have found this to be the most efficient working method. Mondi is currently working on a secure section of the Q&A module on the website (Mondi.nl) in order to make a part of it solely accessible for Zafarana Beach Resort members to ensure your privacy.

By forming a committee, preferably consisting of three investors, Mondi wants to follow the progress and developments of the project in order to keep you informed of all activities. When necessary Mondi will consult with experts to ensure a close control of the development. It is foremost in your interest that IPI can focus on a high standard of finish with completion to be confirmed at a later date. In our opinion there is no doubt regarding the good intentions of the directors of IPI. Our principle aim is to look after the investors; we are independent and will take our own course of action with this in mind. Mondi's sole own interest is that the Zafarana Beach Resort will be completed to the satisfaction of the investors. The first objective for Mondi is to reassure the investors and to form the committee that can anticipate developments in a fast and adequate manner with us.

We understand the need for you to be advised immediately over any questions or concerns you may have. We would also like to prevent further speculation. In addition, we are aware that the quality of the finish should go hand in hand with detailed agreements well considerate. We hope to work together in a positive and constructive way with you, in order for you to enjoy your apartment in Egypt in the end.

We trust you have found this letter informative.

Rob Smulders
Managing Director

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MONDI to Form Zafarana Steering Group

IPI have recently reported that whilst the creation of the Association of Owners has been delayed, it will now be founded and managed by MONDI.

MONDI appears to be a Dutch independent group which works for the interests of its members. IPI say that they have negotiated a one year membership MONDI for Zafarana investors, and have agreed to pay the cost of this year's membership on investors behalf. This new set-up effectively introduces another layer between the investor and IPI communication process.

We are told that construction updates are to be made available through a secure Q&A section on the MONDI website, which at present is in Dutch only.

IPI also report that MONDI has recently carried out a financial audit of IPI with regard to Zafarana Beach Resort. MONDI's conclusion is that currently IPI does not face any financial difficulties.

Below is the full text of email from Kim Bobeldijk:

As you are aware, during the meeting held in the Netherlands on 16 November 2008, among other things, the AoE was discussed. However, as advised in our letter of 6 February, due to recent developments the progression of this association has been delayed.

This is most regrettable as this association is a good tool for the owners/investors to communicate with us, the developers. However, we have been looking at ways to resolve this in the short term and IPI concluded that an Interest Association of Owners (IAoO) should be formed. This will be founded and managed by MONDI.

MONDI is the Dutch independent group which stands for the collective interests of its members. IPI have negotiated a one year membership for each investor in the Zafarana Beach Resort to join MONDI. As a good will gesture, the cost of this membership will be paid for by IPI for our investors. Rob Smulders, Director of MONDI, will form a steering group together with a number of investors to oversee the running of the IAoO. The IAoO will be responsible for the communication of all information relating to the development. You will be able to liaise with the IAoO who will, in turn, liaise with IPI.

The association will maintain frequent contact with IPI in order to keep investors fully up to date with the Zafarana Beach Resort. Updates will be available to investors through a secure Q&A section on the MONDI website (www.mondi.nl). At present the MONDI website is only in Dutch. However, MONDI will have all updates regarding the Zafarana Beach Resort translated into English for our non-speaking Dutch clients.

In order for you to become a member of MONDI they require your contact details. We therefore respectfully request your permission for us to send your details to MONDI in order to activate your membership. MONDI will then contact you in regard to your interest in becoming a member of the steering group.

Financial position
We have received numerous questions in relation to IPI's financial situation; the most common one being if IPI have the financial means to complete the construction. We have given multiple affirmations that IPI are financially sound. However, in the current economic climate, the delay in completion, the speculations on the various forums and investors repeated questions themselves, we obviously still need to give our investors the peace of mind they so rightly deserve.

Therefore, IPI instructed MONDI to come in and undertake an audit of our finances in regard to the Zafarana Beach Resort. This has now been completed and we have great pleasure in enclosing the report from Rob Smulders of MONDI. We believe this will give our investors the reassurance that they need.

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