LVIII Maquiladora Industry Outlook ConferenceTIJUANA, BCJanuary 26th, 2007

Company Profile

HIGHLIGHTS 2005

• Intermex Parques IndustrialesLeading Industrial Developer in the State of ChihuahuaAmong the top five developers in Mexico

• Established in 1971• + 5,000 employees• Operates four business divisions:

Real Estate: Industrial Parks Properties portfolio

ConstructionShelter ServicesLogistics

• ISO 9001:2000 Certified• Over 120 Customers from 14 Countries

served70

US $85 MM

US $400 MM

HQ Employees

Sales

Assets

Demand is Strong

Participants • Automotive• Electronics• Appliances

Traditional

• Aeronautical• Medical• Business Process Operations (call

centers + customer service centers)• High Tech Centers

Newer players

Electronic Manufacturing Services

•Flextronics (Singapore) new campus in Juarez

•Finland’s Elcoteq (Juarez)•Taiwan’s Foxxcon in Juarez•Jabil’s expansions in Guadalajara, Reynosa and Juarez.

•Sanmina-SCI’s new plant in Guadalajara.•Epic’s 2 new plants in Juarez.

OEM Automotive – continuing to move from the U.S.

•GM’s new assembly plant in San Luis Potosi.

•Significant expansions:Nissan in Aguascalientes.Daimler-Chrysler in Toluca in the near future.Toyota in Tijuana.

Campus (suppliers) settings – not just automotive• VW in Puebla.• Daimler-Chrysler in Saltillo and Toluca.• GM in Saltillo.• Ford in Hermosillo.• Electrolux – Juarez – 200 acres supplier park (refrigerators+washers and dryers).

• 3 million SF capacity… 400,000 SF built or in-process.

• Bombardier in Queretaro – 112 acres for suppliers• Jet assembly facility + U.S.$50 mm aerospace

technical center • capacity for 2.5 m illion square foot of facilities.

Mexico’s Industrial Estate Market

Tijuana, BCMarket Size Land Construction Lease 51MM Ft2 $6.50 $28.00 $5.30

The Pacifico and Nordika Parks sub-market has some vacancies, but the Florido, Otay and El Lago sub-markets are ¨Hot¨.

BENSON INDUSTRIES (Oregon-marble

(and other) facades for skyscrapers) leased a 200 KSF ¨spec¨ building in the Verde Park on Teran Teran Boulevard and occupied it in November.

WELCH ALLYN (New York-medical

devices) leased 109 KSF in Verde’s 229 KSF ´spec´ building and occupied it in October. They are hiring 300 in the first phase of the project.

PACIFIC WORLD CORPORATION (nail

care products) leased 60 KSF in the above mentioned Verde building and occupied the space in November.

HITACHI TRANSPORT (Japan –logistics)

leased the 223 KSF former American Racing building ….. expanded it by 50 KSF and occupied the expansion in June.

CO-PRODUCTIONS (Mexico-shelter services) signed a lease for a 40 KSF build-to-suit facility in El Florido Industrial Park and will occupy it during the 1st quarter of 2007.

P & L LOGISTICS expanded their 40 KSF

building (in El Florido Park) by 30 KSF and occupied it in November.

ATISA leased their 50 KSF Omega building

at Otay Mesa.

The 200 KSF Sony building in the Pacifico Park is vacant again. It had been leased to ENDAR (potpourri).

PANASONIC (Japan-batteries) went from

1200 to 300 employees, then closed their 178 KSF facility in El Pacifico.

MexicaliMarket Size Land Construction Lease 16 MM FT² $2.40 $32.00 $4.20

KUANSUNG (Korea – plastics) bought the 85 KSF Comex Platech building and occupied it in September. Kuansung, which produces cabinets for LG´s television plant, had already occupied a neighboring building.

CALIFORNIA WASTE (U.S. – clothing)

leased 11 KSF in the Las Californias Industrial Park and occupied it in June.

STARION (U.S. – metal stamping)

expanded their 30 KSF building by 11 KSF and occupied it in May.

A ¨confidential¨ company (construction /

home improvements products) bought 37 acres of land, a ¨Greenfield¨ project, and will occupy a facility of an as-yet-undisclosed size in the 4th quarter of 2007.

CD ELECTRONICA (Mexico – electronic

subassemblies) expanded by 8 KSF in Grupo Nelson´s Promotora Industrial Park.

MAG TECHNOLOGIES (Taiwan – TV monitor subassemblies) leased a long – vacant 236 KSF building in the Colorado Industrial Park. They installed their production lines in September.

TELVISTA (a unit of Grupo Carso,

controlled by billionaire Carlos Slim) opened a 2,500 employees call center. They estimate that the cost of their services will be about one half of that in the U.S. They occupied a facility in the Teran corridor.

The 500 KSF MITSUBISHI building is still

vacant after 3 years on the market.

No speculative / inventory facilities have been built in the last 18 months.

LEONARD METALS (Seattle – aerospace

subassemblies) leased a 25 KSF in the Calasia Industrial Park and occupied it in February.

INTERBATH (U.S.-shower heads)

expanded their building in the Nelson Industrial Park by 33 KSF and occupied it in June.

JuarezMarket Size Land Construction Lease 61 MM FT² $4.00 $30.00 $5.20

In the first 9 months of 2006, more than 4.6 million SF have been contracted for or occupied.

ELECTROLUX (Sweden) has started building

an 800 KSF building (for washers and dryers) just to the north of their 1.8 million SF refrigerator plant, where they currently employee 2,700. The new plant will be completed in July ´07.

PROTRANS (Indianapolis – logistics)

occupied a 76 KSF facility in the Americas 2 industrial park in the 2nd quarter.

ELECTROLUX leased and occupied a 100

KSF logistics facility in October in the Intermex Sur Industrial Park, just across from the 1.8 million SF Electrolux refrigerator plant.

Intermex has 2 spec/inventory buildings in-

process in the Intermex Parque Sur … 67 and 80 KSF; both expandable.

INVENTEC (Taiwan – electronics) leased a 205 KSF building in June on Libramiento Aeropuerto.

CORDIS (a Johnson & Johnson subsidiary – endovascular medical products) was recognized by Industry Week magazine as one of the “10 best manufacturing plants in North America”

CONVERTORS DE MEXICO (a Cardinal Health division – surgical gowns and gloves) has its 3rd plant in Juarez in-process … a 150 KSF building in the Salvarcar Industrial Park … to be completed in December … expected to employ 400 within one year.

RYDER (U.S. – logistics) leased the 175 KSF Prudential/Bermudez – owned building in the Juarez Industrial Park.

Juarez

Intermex has 2 spec buildings available in the

AeroJuarez Park … a 183 KSF multi-tenant facility and an 80 KSF (expandable) building.

MOS (picture frames) leased 46 KSF in June

in a Verde building in the Aeropuerto Industrial Park.

BOMBARDIER RECREATIONAL

PRODUCTS (Canada – all terrain vehicles) bought the 437 KSF former Thomson building in June, located at the south entrance of the Antonio J. Bermudez Industrial Park.

CONTEC (Japan – automotive wire harnesses)

leased a 100 KSF CPA – owned building on the Pan American Highway in the 3rd quarter.

NYPRO (U.S. – plastic injection molding) leased the former MOLNLYCKE building in the Rio Bravo Industrial Park in October.

EDM (a G.E. / General Atlantic & Oak joint venture –

call center and other back office activities) has a 100 KSF leased facility in-progress on Blvd. Cuatro Siglos. They will occupy it in April and add 700 jobs, bringing their Juarez work force to 4200.

Acuña/Piedras NegrasMarket Size Land Construction Lease 4 MM FT² $2.00 $28.00 $4.90

BINSA INTERNATIONAL (Mexico – construction materials) purchased 8 acres inPiedras Negras … will build a facility of an as-yet-undisclosed size and will start operation with 45 employees.

LANCERMEX (U.S. – soft drink dispensers)

has selected Piedras Negras as their site location and will very shortly announce details of the project.

FUJIKURA (Japan – automotive wire

harnesses) leased an existing 140 KSF building in Amistad’s Industrial Park … occupied it in August, employing 300.

DOMINION BLUE LINE (Canada – clear paper protectors) leased 32 KSF in August in the Amistad Industrial Park in Acuña and started operations with 20 employees.

U.S. GRAPHITE (U.S. – carbon composites

for the aerospace industry) leased 12 KSF in Amistad´s Industrial Park in Acuña and started operations with 30 employees in October.

Nuevo Laredo Market Size Land Construction Lease 8 MM FT² $3.00 $30.00 $4.90

MAXI TILE (California – vinyl siding) bought rail – served land off the Anahuac highway (between Oradel and Nuevo Laredo); built an 80 KSF facility and occupied it in October.

CATERPILLAR (Peoria, Illinois – heavy

equipment) took 90 KSF in June in Oradel’s 180 KSF spec/inventory building. They will use it as a warehouse in the short term; then use it as a refurbishing/remanufacturing facility long-term.

CIESA (Monterrey – developer) completed a 70 KSF (divisible) spec building in September

GENERAL BINDING CORPORATION (plastic notebook binders) now occupies 3 buildings, a total of 283 KSF

MODINE MANUFACTURING (Racine,

Wisconsin – applied thermal innovations) expanded their existing 80 KSF building by another 80 KSF and occupied the expansion in November.

There were 1.1 million SF of space available

as of October.

ReynosaMarket Size Land Construction Lease 27 MM FT² $2.50 $32.00 $4.90

INTERMEX (Mexico-developer) has a 130 KSF speculative/inventory building available in the Villa Florida Park.

EATON (Ohio) leased the 150 KSF

former/vacant Celestica building in the Colonial Industrial Park. They occupied it in September, employing 200.

REVCOR (Illinois-fabricating metal parts for

airconditioning units) occupied a 50 KSF ¨spec¨ building in Verde’s El Puente Industrial Park in October; starting with 150 employees.

COPELAND COMPRESSORS (a division of

EMERSON) has a 221 KSF build-to-suit-to-own facility in-process in the Villa Florida Park and will occupy it in early 2007. Grupo Rio San Juan is the general contractor.

LG ELECTRONICS (Korea-plasma screen

televisions) has a 340 KSF build-to-suit-to-own facility in-process in the Reynosa Industrial Park … will occupy it in December and will employee 1000 +. Nuevo Santander is the builder.

HS ELECTRONICS (Korea – printed circuit boards) leased a 140 KSF Verde-owned building in July. The former tenant was Bonnco. HS employs 300.

MASTERBRAND (a Fortune brands division

– cabinets) leased a 67 KSF ¨spec¨ building in September in Prologis´ Pharr Bridge Center, where they will employ 400.

EMERSON TOOL & APPLIANCE (St. Louis,

Missouri – wet/dry vacuums) expanded their existing 200 KSF building in the Colonial Industrial Park by 120 KSF and occupied it in November.

NETAFIN (Israel – irrigation products)

leased a 50 KSF ¨spec¨ building in September.

There were 2.6 million SF of space available

in this market in October.

MatamorosMarket Size Land Construction Lease 15 MM FT² $2.00 $33.00 $5.10

A ¨confidential¨ company from Tennessee (metal stampings for automotive products) has chosen Matamoras and will soon announce the scope of their plans. They also have aggressive growth plans and expectations.

FLANDERS (U.S. – precision home air

filters for Home Depot, Lowe’s and others) leased an 80 KSF older, free – standing building in September.

DURA AUTOMOTIVE (Detroit – automotive

window sub-assemblies) had the ¨grand opening¨ of their 168 KSF facility in September.

FINSA (Developer ) has finished a 162 KSF multi-tenant spec/inventory building in their Finsa Oriente Park, across from the CIMA Park.

BULKPACK (Bulk bags for grains and other

natural materials) leased a new ¨spec/inventory¨ building in the Alianza Industrial Park, occupying it in September.

IAI (Brownsville – shelter services provider)

leased an 80 KSF Bonworth ¨spec¨ building in the CIMA Park for an electronics customer with aggressive growth plans. They occupied the facility in September.

SaltilloMarket Size Land Construction Lease 15MM Ft² $2.40 $32.00 $4.80

DELPHI (U.S. – automotive) leased the 200 KSF former Champs building from Finsa in the old industrial area of Saltillo.

BROWN (plastics) expanded by 39 KSF in a

Corporate Properties of the Americas building in Ramos Arizpe.

PELEZER DE MEXICO leased 40 KSF in

Ramos Arizpe.

NEALPO (Pottstown Pennsylvania – automotive drive shaft assemblies) will start with 35 KSF in The Offshore Group’s La Angostura Industrial Park … and expects to double the building space and employ 100 workers.

FOAMEX (automotive) leased a 65 KSF

Amistad spec/inventory building in Ramos Arizpe.

ALTO SHAAM (Menomonee Falls,

Wisconsin – commercial kitchen primary cooking equipment) has contracted with Offshore for 35 KSF of space in the Angostura Industrial Park. They will start in the 1st. quarter of 2007 and expect to build their workforce to 40.

FUMER DIAGNOSTIC (automotive) leased a 54 KSF spec/inventory building in Ramos Arizpe.

HUNTINGTON FOAM (U.S. – appliances)

signed a build-to-suit-to-lease with Amistad for a 52 KSF building in Ramos Arizpe.

SPARTECH (automotive) expanded their

existing building by 120 KSF in Ramos Arizpe.

DESC (Mexico-plastics) signed a build-to-

suit-to-lease for a 130 KSF building in Saltillo.

A “confidential” U.K. – based medical

devices manufacturer has committed to an Offshore Group shelter … 37 KSF in the Angostura Industrial Park.

Torreon, CoahuilaMarket Size Land Construction Lease 10MM Ft2 $3.00 $28.00 $4.70

LINCOLN ELECTRIC (Ohio – welding machines) completed their 3rd plant in Torreon, a 140KSF facility to make welding machine components and accessories. They invested U.S. $7.5 million in the plant and occupied it in January, creating 170 jobs. Lincoln has been operating in the Ferropuertos Industrial Park for 7 years.

MONTIAC (France – aluminum foundry) is

expanding by 120KSF and will start operations in it in the 2nd half of 2007. This expansion is to fulfill GM’s requirement for cylinder heads. Production in the existing building has been shipped primarily to Ford. Montiac, part of the Montupet Group, has been operating in Torreon since 1999.

PHOENIX INTERNATIONAL (U.S. –

electronic components) occupied a 120KSF spec/inventory building in the Ferropuertos Park in December. They will employ 200 people by the end of 2007 and will be producing for their sister company, John Deere, which is located beside the Phoenix International plant.

EXCEL FOAM (polyethylene products) will occupy an existing 80KSF building in the San Pedro Industrial Park. They will grow to 75 employees during 2007. The location decision was driven by the proximity to Excel’s customers in northern and northeastern Mexico.

DELTA AIRLINES will begin flying a daily,

non-stop flight to Los Angeles. Continental already has 2 daily flights to Houston; American Eagle once a day to DFW; Aerolitoral once a day to Juarez and AeroCalifornia daily to Los Angeles.

MonterreyMarket Size Land Construction Lease 82MM Ft² $3.50 $35.00 $5.30

PERMACEL (labeling tapes) leased a 45

KSF Vymnsa building in La Silla Park in Apodaca and occupied it in the October/November time-frame.

BRITISH AMERICAN TOBACCO leased a

100 KSF speculative/inventory building from Martel in Apodaca.

BONAFONT (subsidiary of Danin – bottled

water) leased the 212 KSF former Solectron building from Garza Ponce in the Monterrey Industrial Park and occupied it in October.

WHIRLPOOL leased a 178 KSF Prologis

building in the Monterrey Industrial Park … occupied it in January … using it as a warehouse.

CERVEZERIA CUAUHTEMOC leased a 60 KSF warehouse in Escobedo.

WOOD GROUP leased Avante´s 53 KSF

building in the Guadalupe Industrial Park.

FENCO AUTOMOTIVE leased an 87 KSF building on Avenida Juarez in Guadalupe and will occupy it in the 2nd quarter of 2007.

EAGLE GLOBAL LOGISTICS leased a 57

KSF Kalos building in Guadalupe.

BOTANAS Y DERIVADOS (food warehousing and distributor) leased a 103 KSF Kalos building in Guadalupe.

Monterrey

MAGNA POWER TRAIN leased a 123 KSF Finsa building in Apodaca.

MARY KAY COSMETICS signed a lease

for a 144 KSF build-to-suit facility in the Monterrey Business Park. They will occupy the building in the 2nd quarter of 2007.

LG (Korea – appliances) leased a 67 KSF

Hasna building on Agua Fria and will use it as a warehouse.

PREGIS (corrugated packaging) leased a

70 KSF Prologis building in the Monterrey Industrial Park and occupied it in October.

TECNOLOGICA DG leased a 26 KSF building in Almacentro on Miguel Aleman in Apodaca.

ZIMAG (metal processing) leased a 108

KSF Stiva building in Santa Catarina.

COUPE EXPRESS leased a 14 KSF Kalos building in Santa Catarina.

POLIESTIRENO ALFA GAMA leased 26

KSF from Finsa in Apodaca.

DYNAMERICA leased 77 KSF in El Sabinal in Apodaca in the 4th quarter of 2006.

Vacancy Rates

Industrial market prices – It’s a buyer’s market!

Average capitalization rates

Investment portfolios – Capital is a coward!!

THANK YOU!

Tres HendrixMarketing Director

Intermex Industrial ParksEmail: thendrix@intermex.com