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.