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