The New Year brings with it Resolutions and ours on the Project is to maintain a flow of information because reorganisations in the Project should allow us to move forward and so to have items of information and progress that we can communicate on a regular basis.

As of 31 December 2006 the Project has undergone four main areas of reorganisation and a Press Release was issued as follows:

The Board of Muscat Golf Course Project LLC is pleased to announce the support of Oman Arab Bank and Bank Dhofar, jointly providing the financing requirements necessary to ensure the successful completion of the residential phase of the project. The Board would also like to take this opportunity to thank Government of Oman and their Ministries for the ongoing support and assistance provided by them. Without this support the project could not have progressed to the stage where it can now move forward.

The Board has also confirmed the transition to Phase 2 of the project. With Laing Oman having successfully brought the project through Phase1, Cowi and Partners LLC, in an extended role, will now lead the professional consultancy and project management team which includes Majan Engineering Consultancy and Dave Thomas Golf Design. The overall Master Plan and concept architects are the world-renowned Wimberley, Allison, Tong and Goo.

With all villas now sold and only a small number of apartments remaining for sale, the construction of the residences is scheduled to commence from the first quarter of 2007. It is intended to appoint a contractor of international standing to deliver this important part of the project on a turnkey basis.

It is confirmed that the golf course will "go green" in the coming year, with Muscat Golf & Country Club on schedule to be the home of the Sultanate's first grass golf course.

The Board of Muscat Golf Course Project has also announced two important appointments of new Members joining the Board : Mr. PY Venkataraman, the Deputy General Manager- Credit for Oman Arab Bank, as the senior representative of the banks and Mr. Nick Pattison, formerly Chairman of Shell Oman Marketing.

HH Sayyid Rawy bin Kais confirmed that " With the gracious support already given by the government, the recently concluded support of the banks and a renewed focus for the project team, the Board fully anticipates the project will fulfil the expectations of the promoter HH Sayyid Kais Bin Tarik and of the numerous home owners who have placed their faith in the Muscat Golf Course Project."

Scanned excerpts from 7th January 2007 morning's English speaking Oman daily newspapers are attached.

For those who are not aware COWI is an independent Danish firm of Consulting Engineers and planners, founded in 1930 and has had a permanent office in Oman since 1986 where it trades in the name of Cowi and Partners LLC.

COWI maintains absolute independence from contractor's, suppliers and manufacturers and is firmly established in Oman as an international consultant having earned a reputation for excellence in the fields of architectural, civil and structural works. Furthermore COWI's services are used by various government ministries as specialist advisers for complex projects throughout the Sultanate.

Recent projects that COWI has been involved in include the Guest Palaces at Bait Al Baraka and Qasr Al Alam, the Grand Mosque, the Chedi hotel Muscat, the University of Nizwa and the new Muscat Concert Theatre. Currently COWI are JV consultants for the expansion works of Seeb and Salalah International airports.

COWI bring a wealth of local knowledge and experience to this second phase of the Project which comprises the construction of the residential units, roadways and infrastructure. Cowi's strengths in supervision of construction, testing and commissioning together with their procurement services well experienced in the local market will lead on naturally from the solid base provided during the Laing phase of the project.

This reorganisation also has the advantage of simplifying the decision making process and speeding up approvals without compromising the levels of quality that we are committed to providing all Buyers.

COWI are now finalising negotiations with Contractors preparatory to recommending to the Board Contract Award and announcements will be made public in this area within the next four weeks.

We are confident that with the support of the banks now in place 2007 will bring with it the activity and progress that we all have been waiting for to enable the Project to move to a successful conclusion.