Investment AnalysisSaboey Resort and VillasBig Buddha Beach, Koh Samui, Thailand

Presentation Outline The Investment Objective

Property Description

Current Status

Projected Cash Flows

Baseline Projection Assumptions

Resort Operations

Partnership Structure

Appendix

The Investment Strategy

Objectives Produce a minimum, total annual return (IRR) of 25% over a five-year holding period

Generate a minimum, annual, cash-on-cash return of 15%

Strategy Purchase leasehold and operating rights to a newly constructed, beachfront, boutique

resort

Retain partnership with current developer-operator

Apply innovative and effective marketing programs to maximize current occupancy and room rates

Maintain 100% equity i.e., no debt

Financing Purchase Cost: $1,000,000

Capital Funding Sources: GP: $175,000 LP: $75,000 Loan: $750,000

Samui International

Airport

Property Description

Saboey Resort

Conveniently situated, close to the airport, and the busy tourist center of Chaweng, the spectacular bay is home to both traditional wooden fishing boats, diving schools, and island hopping speed boats, yet remains tranquil, under the watchful eyes of the 14m high golden Big Buddha statue, Samui's biggest cultural attraction.

Saboey provides a haven of simple elegance in a contemporary tropical style. Designed to maximize comfort, space, and privacy, the resort is unparalleled within its price range, offering affordable luxury for the discerning traveler. Sloping gently down to the beachfront, each of the well-appointed villas enjoys panoramic sea views and vast wooden decks. A double infinity edge feature of the freshwater pool and cascading Jacuzzi provides both with a seamless view onto the sea. The lush tropical gardens landscaped around the existing palms are adorned with water features, and are kept vibrant with an eco-friendly flow of collected rain water and recycled filtered drainage water.

Current Status Corporate Structure: Thai Private Limited Liability Company

Shareholders: Managing Partner, Jose Levi plus two passive equity partners

Facilities: 14 units, café/bar and main areas operating. To complete remaining 6 units and 50

seat restaurant by December 31, 2005

Selling Price: $1,400,000

Operating Results:Revenue Current Month Current year

Hotel 19,106.23$ 159,039.20$

Restaurant 3,984.48$ 32,320.58$

Bar 3,426.45$ 28,598.68$

Laundry 29.53$ 402.55$

Other 1,698.98$ 10,908.10$

Service Charge 2,855$ 23,370$

Rental & Other 2,854.65$ 681.95$

Total Gross 33,954.95$ 255,321.53$

Occupancy 56.65% 48.29%As of 8/29/2005

Projected Cash FlowsBaseline Case

Acquisition

Sources of FundsCash Investment, General Partner 182,500Cash Investment, Limited Partner 100,000First Mortgage 750,000

Total: $1,032,500

Uses of FundsPurchase, Real Estate 1,000,000Purchase, Personal Property 0Closing Costs 25,000Points 7,500Amortized Fees 01st Year Capital Improvements 0

Total: $1,032,500Property Overview

Cash Taxable Cash Flow Taxable Gain ProceedsYear Invested Income Before Taxes on Sale of Sale

2006 282,500 115,567 63,4902007 51,263 (4,658)2008 122,993 62,9092009 138,059 73,5112010 154,296 84,962 175,570 760,072

Baseline Projection Assumptions

Sell in fifth year

20 rental villas, café/bar, and medical spa

Selling price based on 15% cap rate

Room rate growth of 8.0%

Expense growth of 3.5%

Starting average room rate = $50/night (not including 10% service charge)

Average occupancy 65%

Tax rate of 30%

Debt: $750,000 10 year fully-amortizing loan at 7.0% int.

Hotel OperationsCompetitive Advantages

Direct beachfront location Mostly, private villas Branded and promoted medical spa as magnet State-of-the-art operations, mechanicals and ambiance Close to Chaweng commercial and nightlife area Less than 10 minutes from Samui International Airport Steps from the Ferry Port to neighboring islands and the

Angton National Park islands Personalized service with experienced management and staff Full range facilities, services and amenities

Partnership Structure Limited Partnership or LLC

Koh Samui Investments LLC is the General Partner and will assume all management and reporting responsibilities

General Partner contributes 70% of total investment and receives 75% of operating cash flow plus 75% of realized gain on sale

90% of cash flow distributed as received

Assets will be owned through a Thai private limited company (may purchase shares of existing company to avoid transfer tax)

Taxes on money distributed will be the responsibility of the individual member

Appendix

Photos of Property

Revenue Analysis

Projected Income and Expenses

Analysis of Operating Cash Flows

Analysis of Resale

Limited Partnership Analysis

Disclaimer

Contact Information

Picture Gallery

Projected Income and ExpensesPROJECTED INCOME AND EXPENSES, in total dollars

2006 2007 2008 2009 2010

INCOME Gross Scheduled Rent Income 401,500 433,620 468,310 505,774 546,236Food & Beverage 80,000 86,724 93,662 101,155 109,247Rent from Medical Spa 75,000 75,000 75,000 75,000 75,000TOTAL GROSS INCOME 556,500 595,344 636,972 681,929 730,484

VACANCY & CREDIT ALLOWANCE 140,525 151,767 163,908 177,021 191,183

GROSS OPERATING INCOME 415,975 443,577 473,063 504,908 539,301

EXPENSESLand Lease 0 57,750Food & Beverage 40,000 43,362 46,831 50,577 54,624Operating Costs 207,988 221,789 236,532 252,454 269,650Consultant 0 20,837 22,294 23,868 25,567

TOTAL EXPENSES 247,988 343,738 305,657 326,899 349,841

NET OPERATING INCOME 167,988 99,839 167,407 178,009 189,460

Analysis of Operating Cash Flows

ANALYSIS OF OPERATING CASH FLOWS

2006 2007 2008 2009 2010

NET OPERATING INCOME 167,988 99,839 167,407 178,009 189,460 - Debt Service, First Mortgage 104,498 104,498 104,498 104,498 104,498CASH FLOW BEFORE TAXES 63,490 (4,658) 62,909 73,511 84,962 Cash on Cash Return (CFBT/Initial investment) 22.47% -1.65% 22.27% 26.02% 30.08%Reserves Utilized 0 0 0 0 0Reserves Remaining 0 0 0 0 0NET CASH FLOW AFTER UTILIZING RESERVES 63,490 (4,658) 62,909 73,511 84,962 - Income Tax Attributable to Property 0 0 0 0 0

CASH FLOW AFTER TAXES AND RESERVES 63,490 (4,658) 62,909 73,511 84,962Cumulative Cash Flow After Taxes 63,490 58,832 121,741 195,252 280,214

Analysis of Resale

ANALYSIS OF RESALESaboey Long-term Stay

2006 2007 2008 2009 2010

PROJECTED SELLING PRICE, incl. pers. property 1,120,000 666,000 1,116,000 1,187,000 1,263,000 - Costs of Sale 56,000 33,300 55,800 59,350 63,150 - First Mortgage Payoff 696,302 638,721 576,978 510,771 439,778 + Balance of Reserve Fund 0 0 0 0 0BEFORE-TAX SALE PROCEEDS 367,698 (6,021) 483,222 616,879 760,072

Internal Rate of Return, Before Tax 52.63% n/a 32.07% 34.35% 34.78%

PV, Net Operating Inc. & Sale Price less Costs of Sale 985,590 603,215 826,822 818,797 812,161EQUITY, excluding reserves 423,698 27,279 539,022 676,229 823,222RETURN ON EQUITY (CFBT/equity) 14.98% -17.08% 11.67% 10.87% 10.32%

Partnership Analysis

2006 2007 2008 2009 2010

LIMITED PARTNER’S CAPITAL ACCOUNTBalance, Beginning of Year 100,000 114,607 127,422 144,016 161,991± Income or Loss from Operations 28,892 12,816 30,748 34,515 38,583- Distributions from Cash Flow 14,285 0 14,155 16,540 19,116Balance, End of Year 114,607 127,422 144,016 161,991 181,458

+ Profit from Sale 0 0 0 0 43,892- Distribution from Sale 0 0 0 0 226,515

ENDING CAPITAL ACCOUNT BALANCE, LP n/a n/a n/a n/a (1,165)

GENERAL PARTNER’S CAPITAL ACCOUNTBalance, Beginning of Year 182,500 226,320 264,767 314,548 368,472± Income or Loss from Operations 86,675 38,448 92,245 103,544 115,750- Distributions from Cash Flow 42,856 0 42,464 49,620 57,349Balance, End of Year 226,320 264,767 314,548 368,472 426,873

+ Profit from Sale 0 0 0 0 131,677- Distribution from Sale 0 0 0 0 562,044

ENDING CAPITAL ACCOUNT BALANCE, GP n/a n/a n/a n/a (3,494)

Measures of Investment QualityResale at End of 2010

Projected Selling Price: $1,263,000Cost of Sale: $63,150Gain (Loss) on Sale: $179,320Federal Tax on Sale: $0Before-Tax Sale Proceeds: $760,072

Measures of Investment Quality

IRR, Before-Tax: 34.78%MIRR, Before-Tax: 30.73%PV, at 25.00% $812,161

Debt Cap. Gross Cash on Operating Gross OperatingCoverage Rate Income Cash Expense Income, Expenses,

Ratio Multiplier Return Ratio $/sf $/sf

2006 1.61 16.80% 2.69 22.47% 59.62% 51.94 23.152007 0.96 9.98% 1.50 -1.65% 77.49% 55.57 32.082008 1.60 16.74% 2.36 22.27% 64.61% 59.45 28.532009 1.70 17.80% 2.35 26.02% 64.74% 63.65 30.512010 1.81 18.95% 2.34 30.08% 64.87% 68.18 32.65

DisclaimerThis report is not intended as an offering to purchase securities.

The information and calculations presented in this analysis are believed to be accurate, but are not guaranteed. They are intended for the purposes of projection and analysis, and should not be used for preparation of income tax returns. Federal tax calculations in this report are based upon the Tax Reform Act of 1986, the Revenue ReconciliationAct of 1993, the Taxpayer Relief Act of 1997 and the Jobs and Growth Tax Relief Reconciliation Act of 2003 and are subject to revision as well as further clarifications, interpretations, rulings, regulations and technical corrections.

These tax calculations are also based upon certain assumptions about the taxpayer and about the property, and do not take into account the possibility of Alternative Minimum Tax liability, the At-Risk rules, investment interest limitations, possible future-year indexing of tax brackets, or the impact of other investments which may intereact to produce tax consequences other thanthose projected here. The user of this program and information should consult a tax specialist concerning his/her particular circumstances before making any investment decision.

*Note especially that a taxpayer’s ability to use losses generated by this investment to offset income generated by this investment is likely to be affected by the taxpayer’s particular circumstances, including Adjusted Gross Income, and passive and investment income or losses from other activities. Consult your tax advisor regarding these issues.

Any reference to "this partner," "this LP" or "this member" refers to any partner ormember with a given percentage interest based on his/her share of capital invested.

KSI Contact Information

Russell M. BlumenthalManaging DirectorKoh Samui Investments LLCEmal: russblumenthal@hotmailPhone: +66 (0)1 669 0330