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INSIDE:

• Overview

• Business Opportunities

Greece

• Projects

1. GREECE

Part “A” West

a) Marina

b) WG-PAL-01

c) WG-KAL-01

d) WG-SL-01

Part “B” Cyclades

e) CY-THN-01

Part “C” Crete

f) CR-AN-01

g) CR-IP-01

Part “D” Sporades

h) SP-SK-01

2. CYPRUS (*)

3. U.K. (*)

4. ROMANIA (*)

• Risks

• Valuation

• Disclosures

(*) Will Follow upon request Messolonghi lagoon

City residential and Commercial

Units

Resort Hotels, seaside residential

developments

Undeveloped but promising Areas

for Future development

Messolonghi lagoon

OVERVIEW

STRATEGY/ TARGET MARKET

Our target focuses on

• Investing in the high-end residential units, (Villas, apartments,

lofts) right in the centre of the capital City of each country, in the

most reputable areas where we can benefit from the results of

offering high quality structures versus good pricing.

• Leisure-integrated resort projects in the Mediterranean. Earning

benefit is the long experience gained in the past years from building

as well as managing 5 and 4 star hotels. Leisure components are of

prime interest, such as hotel, golf course, marina, thermal- spa

facility, theme parks etc. Targeting location by the sea, within an

admirable secluded hideaway in an attractive natural landscape and

within driving distance from an airport and/or port. Offering

facilities: security, property management, maintenance and health

and well being services.

• Exploiting the best investment opportunities in the region of

undeveloped but promising areas in Greece and the Balkans.

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BUSINESS OPPORTUNITIES IN GREECE

GENERAL INFORMATION

The market of Greece is quite difficult for foreign investing companies due to

the high and complicated taxation and legislation covering Developing.

But it is a market with a long history in developing, is politically stable, enjoys

good weather conditions, and has a strong spending capacity.

To minimize the risks associated with the economic downturn we focus on

high-end developments that are less sensitive to the economic fluctuations

than a mass-market product that can resist in time.

Hotel Development:

Generally, the minimum land that should be owned for building a hotel is

15.000 m2. (For lands out of the city borders and in places that the hotel

development is allowed).

“A” Privately owned islands- deserted.

There are a few islands in the Ionian sea and also in the Aegean that are

privately owned and can be used for a Hotel development.

A special care must be taken because the islands in general, have serious

problems with the legislation concerning development on them.

More or less, the same applies to most of the areas that are not included

within the city limits (even on the mainland).

Here below some of the common parameters are shown:

• Forestry issues,

• Natura & Ramsar restricted areas,

• Water and current supplies and the rest of the utilities,

• Strong Winds,

• Geological formations, Seismic areas, Volcanoes etc

• Archaeological sites shown or hidden,

• Accessibility by Sea and Air during the different seasons,

• Low coefficients for building, heights and coverage, Allowed Usage of

the land

• Demography of the island inhabitants

• Specifications for the minimum distance from the sea shore, that the

development is allowed to be placed.

On the private islands, the cost of the land and the project can be considered

of around 2.500 - 6.000 Euro/ m2 depending on the location.

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“B” Inhabited islands On the different islands of Greece, there are still areas that could be built.

The same parameters as above should be observed, before any decision is to

be followed.

I here below show on which line one company should base its calculations for

understanding if is of interest to invest on these types of projects or not.

(the Value on the same island changes depending on the orientation, views,

and proximity to the sea)

Prices for buying the project, plot and building included, per location

• Mykonos: 7.000 -15.000 Euro/ m2 (T.S.: 4 months, “+++++” )

• Crete - Elounda: 6.000 -14.000 Euro/ m2 (T.s: 6 months, “ ++++”)

• Crete General: 2.500 - 5.000 Euro/ m2 (T.S.: 5 months, “+++”)

• Santorini, Paros: 4.500 - 5.500 Euro/ m2 (T.S.: 3 months, “ ++++” )

• Cycladic islands: 2.600 - 5.000 Euro/ m2 (T.S.: 4 months, “ ++”)

• Sporades Islands: 3.000 - 4.500 Euro/ m2 (T.S.: 4 months, “++”)

• Rodes: 3.000 - 5.000 Euro/ m2 (T.S.: 6 months, “+++”)

• Corfu: 3.000 - 5.000 Euro/ m2 (T.S.: 5 months, “+++”)

• Eptanissa: 2.300 - 4.700 Euro/ m2 (T.S.: 3 months, “++”)

T.S.: Tourist Season,

“+++++” Higher value of daily renting prices and higher occupancies

“++” Lower value of daily renting prices and moderate occupancies

(The above prices cover only the building with the installations and finishes.

The cost for A/C cooling, Bars, kitchens, Machineries, Conference facilities and

instruments, Furniture and Special features for Spa and Gym, BMS system,

Biological water filtration, Water desalination installation, Solar panels,

swimming pools- Jacuzzi, Hammam etc are not included).

“C” MAINLAND:

Western part of Greece: 2.400 - 3.700 Euro/ m2 (Tourist Season: if it is

developed properly, it can evolve to a full year destination)

The area is not much developed but is very beautiful and very promising.

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EXECUTIVE SUMMARY

This is a list of Projects of Medium/Large size under development in

Greece by Arsinoe S.A.

The list includes 8 projects as follows:

A/A PROJECT DESCRIPTION G.D.V.

Million Euros

(*)

Construction Period

1. Messologgi Marina 40 1.5 years

2. WG-PAL-01 Hotel-Residential 165 4 years

3. WG-EPI-01 Hotel-Residential 35 2 years

4. WG-SL-01 Hotel-Residential 70 3 years

5. CY-THN-01 Holiday Villas 9 2 years

6. CR-AN-01 Luxury Villas 11 3 years

7. CR-IP-01 Hotel-Residential 185 5 years

8. SP-SK-01 Hotel-Residential 33 3 years

• G.D.V. Gross Development value

Each project is distinguished by special characteristics of location,

quality and growth potential.

Our group with a 70-year history has been a dominant force in such

developments in Cyprus, Greece, the UK (and recently also Romania)

and is characterised by sound, continuous growth and sensible

financing.

Our group welcome participation or sale approaches by partners of

equal standing and reputation.

Potential partners/ purchases should bear in mind that they need put

up from between 25 %- 35 % as own capital, with Banks associated

with us lending the balance over 5 – 20 years (depending on the type

of the project) at competitive rates in any major currency.

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General notes for the Ionian Archipelago, the islands and the mainland. The Ionian Islands hug the West Coast of Greece and are distinguished from many of the other Greek Islands by fertile land blanketed with olive groves as well as pine trees. Some of the Mediterranean's most beautiful beaches can be found in the area.

The islands of Corfu, Paxoi, Lefkas, Ithaki, Kephalonia and Zakynthos are the most famous and along with many other smaller ones like Kalamos Kastos etc, form a unique protected archipelago.

The Mainland with its endless variety of beautiful landscapes has formed its own unique character. Springtime is an unforgettable experience as the aroma of wild flowers fills the air.

The area is highly recommended for family vacation and for nature lovers who come in all seasons of the year.

High mountains and lash forests, river banks, lakes, caves, rich variety of flora and fauna with over 200 species of birds, 50 of which are considered rare, the the largest and most varied wildlife habitat in the whole of Greece, thermal waters.

Sailing conditions: The Ionian Islands are considered by most as the absolute sailing paradise combining fair weather, many anchorages and short passages.

The Ionian Sea is the most “user friendly” sailing area in Greece.

The prevailing summer wind is Northwesterly and blows at force 4-5 knots from midday until six in the afternoon.

The distances are short and there are many beaches, bays, marinas and ports only a few miles away from each other.

PROJECTSPART “A”: WESTERN PART OF GREECE MAP

A: AKTIO AIRPORT

B: MARINA MESSOLOGHI (In contest, not yet finalized)

C: PLOT, WG-PAL-01

D: PLOT, WG-KAL-01 (Kalamos Island)

AKTIO AIRPORT

KALAMOS ISLAND Projects: “D”

MESSOLONGHI MARINA. Project: “B”

PROJECTS “B” & “C”

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Messologhi Area Yacht Harbor and a Marina Messologhi is the capital city of Aetoloakarnania in the western part of Greece. 34 km from Rio - Antirio Bridge and 45’ from Aktio Airport. Challenge Of Nature: Wild mountains, fertile valleys, sheer gorges, torrents and peaceful lakes, and wild life habitats, thermal springs. The salt marshes of Mesologhi-Aitoliko are a nesting ground for thousands of ducks and birds and have their own rare charm. Activities: Sailing, Rafting, Ecotourism, Hang Gliding, Trekking, Rock Climbing, Mountaineering, Kayak, Bird Watching, network of paths for recreational walking. "The demand from the nau ical tsector of the tourism market for births, is reaching unprecedented figures, which can only be remedied by a dramatic upgrading of existing facilities as well as creating new ones. Important fact: The position Passage from the Ionian to the Aegean and protected from the strong wings. 4ης Generation Marina according to the “European Federation of yachting harbors” Births: 600 Boats (Superyachts included) Floating Pontoons and Fingers Maintenance and fixing facilities. Lift Crane: 200 tones A large-scale development for the harbor and land infrastructure is currently underway. The area will be transformed into a high-caliber, international Marina in the Mediterranean, thoroughly designed to cater the mooring needs of customers with even large luxury vessels and ocean-going mega yachts.

‘PROJECT B: MARINA MESSOLONGHI (In contest, not yet finalized) Marina Area Planed tourists village

MESSOLOGHI AREA

MARINA TOPOGRAPHICAL CHART

Gross Development Value: 40 Million Euros

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Notes about the plot: It is located on the main land in the western part of Greece, overlooking the Ionian Sea. Closed to Lefkada and Kastos islands. The freehold is of 200 Ha but only the 30 Ha can be developed. The rest will remain as a private Forest where it can be used for sport activities (golf, hunting, picnics etc). It has a direct frontage to the beach. Total buildable Area:35.000 m2 Theme: “Ecological Village” Energy producing village: Photovoltaics, Geothermal heating, ambient cooling, desalination plan for the water supply, trees and vegetables growth. Purpose: The site can be developed as a mixed unit of a Hotel (150 rooms and 160 bungalows) and villas for sale. Possible additional features: not included in the calculations. Golf centre (by using the desalination process to satisfy the water demand), Holistic center for well being. Activities: Swimming, Horse riding, bird watching, good sea- food and Nature trails, sports. Nearby facilities: The nearby town with its picturesque settings and the beautiful architecture creates a stunning environment for summer holidays for families and elderly people. Good area for retirement Population of the near by town: 2.500 People. 30” min drive from the airport of Aktio. Small marina and port. Hospital: 40 min away Food: many Tavernas with fish and Greek specialties. Mild weather conditions Targeted clientele: English & German and Italians Tourist Season: all year round

PROJECT: UNDER STUDY C: CODE: WG-PAL-01

THE PLOT

THE BEACH IN FRONT OF THE PLOT

Hotel: 150 rooms, Spa 2000 m2,

160 Bungalows (60 m2 each),

200 Villas for sale


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Notes about the plot:

The plot is located in the Northen part of the island Kalamos at “Episkopi” area. Kalamos Island lies in the southeast of Lefkada, close to the coasts of Etoloakarnania.

The nature is unique and the atmosphere travels the visitor in unforgettable past times. The pine trees forest is one of the most precious of the Ionian islands. Luxuriant, green and hospitable to many species of birds and small animals.

Kalamos has small pebbled beaches with crystal waters. Many dolphins are traveling in its surrounding waters.

Near to Episkopi area are fount the left overs of the Castle of Kalamos, known as Kastromonastiro.

Total buildable Area: Hotel: 2500 m2 Bungalows: 1700 m2 Residential: 4500m2 Theme: Purpose: Ecological island architecture Activities: Sailing, Hang Gliding, Trekking, Rock Climbing, Mountaineering, Bird Watching, Diving to see the nearby ship wrecks Nearby facilities: Myticas picturesque village, Lefkada, Kastos islands: 15 min Aktio Airport: 40 min Hospital: 30 min Targeted clientele: German, English, Italian, American.

PROJECT: UNDER STUDY D: PLOT, WG-EPI-01 (Kalamos Island)

THE PLOT

THE BEACH

Boutique Hotel: 50 rooms,


45 Villas for sale (100 m2 mixed area, each)


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Notes about the ISLAND: The island is located in the Ionian Sea very closed to the island of Leykada.

The island is lashing green and has beautiful small beaches for those who search private and Luxury holidays during the Summer time.

Whole island Area: 140.000 m2 Forest: 70.000 m2 Total buildable Area: Hotel: 8.000 m2 Bungalows: 4.000 m2 Theme: Purpose: Ecological island architecture Spa facilities Activities: Sailing, Hang Gliding, Trekking, Rock Climbing, Mountaineering, Bird Watching, Diving to see the nearby ship wrecks Nearby facilities: Lefkada, Kastos islands: 30 min Aktio Airport: 40 min Hospital: 40 min Targeted clientele: American, Arab counties, Russian, English, Italian.

PROJECT: UNDER STUDY E: PLOT, WG-SI-01 (PRIVATE ISLAND)

THE PLOT

THE BEACH


Spa facilities: 2.000 m2

45 Bungalows (70 m2 each)


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Notes about the project: The plot is situated at the area of Porto on Tinos island. This known - yet unknown island of the Cyclades holds lots of surprises for its visitors. Today, there are more than 50 inhabited villages on Tinos that have preserved their picturesque atmosphere. Masterpieces of vernacular architecture are spread around the island, since Tinos is the island of artists. Some of the most important Greek painters and sculptors of the 19th and 20th centuries were from Tinos. The museums and the archaeological sites keep the history of this place alive.

A scenery of rare beauty in Volax village which is composed of perfectly round shaped granite stones, the marvelous aquatic habitat of Livada bay with the red, black and yellow rocks, are a few of its exciting spots. The whole surface of the island is carved with thousands of miles of drywall stone fences. Countless chapels, dovecotes and windmills adorn the mountainsides, the ravines and the valleys.

Permit already achieved: 21 Houses ranging from 70 m2 to 150 m2. Each one with its private use of a garden. Theme: Purpose: Cycladic Architecture: “The Artists village”. Activities: Sailing, Hang Gliding, Rock Climbing, Mountaineering, water sports, Diving to see the nearby ship wrecks, island hoping. Nearby facilities: The beach is 150 m away. Hospital: exists locally.From Athens: Dolphin: 2-3 hours, Boat: 5-8 hours depending on the time schedule. Targeted clientele: German, English, American

PART “B”: CYCLADIC ISLANDS PROJECT: TINOS ISLAND F: PLOT, CY-THN-01

PERSPECTIVE- SKETCH

SKETCHES

Villas: 21 Units (ranging from 75 to 150 m2)


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Notes about the project: Crete, is the Greek island that has been influenced by the multicoloured Mediterranean, the mysterious East and the fascinating Africa.

The plot is situated in the area of Elounda the small village with a unique architectural conception that, in combination with the natural environment, creates a mythical setting for relaxing but yet luxury holidays. It is surrounded by acres of lush vegetation and overlooks the azure waters of Mirabelo Bay and the Spinalonga Island. In the proximities, the world known top class Elounda Hotels chains are fount that boast a good range of facilities in the lap of luxury to suit all demanding tastes.

The golf and Spa facilities offer luxury amenities to the visitors. It is the preferred destination of many celebrities around the globe.

Permits already achieved: 12 villas of approximately 200 m2. each Theme: Purpose: Cretan Stone built luxurious villas Possible additional features: Modern architecture, pool, pergolas, B.M.S. controlling system. Activities: Sailing, water sports, Diving to see the nearby ship wrecks, Golf, Spa etc. Nearby facilities: 60 min away from The airport of Heraclion. 10 min from the beach. Targeted clientele: American, Russian, Italian, French and Arab countries

PART “C”: CRETE ISLAND PROJECT: AYIOS NIKOLAOS G: PLOT, CR-AN-01

VIEW TO MIRABELO BAY & SPINALONGA ISLAND

IDEAS

Villas: 12 Units (200 m2 mixed area, each)


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Notes about the project: The plot is situated closed to the village of Ierapetra In Crete and has a direct frontage of 1,8 Km on the Platys Gialos Bay.

Ierapetra is popularly known as the southernmost town of Europe, nicknamed "bride of the Libyan Sea" because of its position. Having the great fortune to be the southernmost town of Europe, Ierapetra enjoys the mildest weather, with the least annual rainfall and a temperature that rarely drops below 12 C all year long.

The freehold is of 200 Ha

Total buildable Area:45.000 m2 Theme: “Green Village” Energy producing ecological village: Photovoltaics, Geothermal heating, ambient cooling, desalination plan for the water supply, trees, vegetables and herbs growth. Purpose: The site can be developed as a mixed unit of a Hotel (250 rooms and 80 bungalows) and villas for sale. Possible additional features: not included in the calculations. Golf centre (by using the desalination process to satisfy the water demand), Holistic center for well being. Activities: Swimming, diving, sightseeing, good sea- food and Nature trails, sports. Nearby facilities: 60 min away from The airport of Heraclion. The many nearby villages with their picturesque settings and beautiful architecture, create a perfect environment for summer holidays for families and young people. Targeted clientele: American, Russian, Italian, French German and Arab countries

PROJECT: IERAPETRA I: PLOT, CR-IE-01

VIEW FROM THE PLOT TO “PLATYS GIALOS” BAY

VILLA PLAN IDEAS

Hotel: 250 rooms, Spa 2000 m2,


80 Villas (of 120 m2 mixed area) for sale


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Notes about the project: Skiathos is green, soft and idyllic and probably has more sandy beaches than any other Greek island. Ranging from tiny coves to long open expanses of sand, there are over 60 beaches. Three of them, Koukounaries, Lalaria, and Vromolimnos Bay are among Greece's best. The island's only town, Skiathos, rises from one of Greece's prettiest ports. Pine woods, orchards and more than half a million olive trees cover the hilly interior. The highest wooded summit rises to 438 metres. Around Skiathos there are 9 smaller islands. Two of these, called Tsougries, lie across the main harbour offering safe anchorage to boats, with a small marina for yachts. Total buildable Area: Boutique Hotel 1.400 m2: 22 Rooms and 40 Bungalows of 2.000 m2 Beach houses of total: 2.300 m2 Theme: Purpose: Beach Houses Activities: Sailing, Hang Gliding, Rock Climbing, Mountaineering, water sports, Diving to see the nearby ship wrecks, night life, island hoping. Nearby facilities: Airport: 15 min Sea Connections from Ayios Constantinos: 30 min. Medical Services exist on the island. Targeted clientele: English, South European.

PART “D”: SPORADES ISLAND

PROJECT: SKIATHOS- VROMOLIMNOS J: PLOT, SP-SK-01

VIEW FROM THE PLOT TO “VROMOLIMNOS” BEACH


40 Bungalows (60 m2 each)

23 Villas (100 m2 mixed area, each) for sale


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Risk of fluctuation of construction costs and time Risk of fluctuation of time only

RISKS If the investor is aiming to earn money from being a partner in the

development scheme, meaning participating in the risk of time and

possible raising construction cost, rather than buying the project, the

safe calculations should be based on a return on the investment of

around 30 % – 50 % in the course of 3 to 5 years.

(Around 8 – 10 % year return).

If on the other hand, the investor would prefer to buy the ready made

project and re-sell, thus avoiding the possible raising cost during

construction, the return should be considered at about 20 – 30 % in

the course of 3 - 5 years. (around 6 – 8 % per year return).

Risks that can not be eliminated: Fluctuation of Interest rates or foreign exchange rates, securities

prices or market indexes, operational or financial conditions of

companies or other factors.

VALUATIONS The plot valuations are based on current market values that are

checked by reputable well known Agencies who are specializing in

this field, that they know the market of each special location and are

authorized to perform such a comprehensive work.

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Sunset at Messolonghi Area, Marina bay

IMPORTANT DISCLOSURES

This report does not provide individually tailored investment advice.

It has been prepared for our internal use and without regard to the

circumstances and objectives of those who might be interested for it.

Our recommendations are that the investors independently should

evaluate the particular investments, and direct them to seek a financial

consultant’s advice concerning the expected return on their investment.

The appropriateness of an investment or strategy will depend on the

investor's special circumstances and objectives. This report is not an

offer to gain or offer any security or to participate in any trading or

intermediating strategy.

The value of and income from your investments may vary because of

changes in interest rates or foreign exchange rates, securities prices or

market indexes, operational or financial conditions of companies or

other factors. Estimates of future performance are based on

assumptions that may not be realized.

With the exception of information regarding Arsinoe SA, reports

prepared by our research personnel and consultants are based on

public information. We make every effort to use reliable,

comprehensive information, but we do not represent that it is accurate

or complete.

The information in this report is confidential and is intended solely for

the address(es). Be aware that any disclosure, copying, distribution or

use of this transmission or its contents is prohibited without our written

authorization.

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