YAQARA PASTORAL COMPANY & YAQARA STUDIO CITY
FORM DEVELOPMENT ALLIANCE

August 25, 2004

A long term, mutually beneficial business partnership has been entered into by the Yaqara Pastoral Company and Paradise Entertainment Limited (PEL), the company licensed to develop the Yaqara Studio City site.

The partnership agreement was signed by representatives from both organisations at a Ceremony held at Yaqara on July 22 2004.

"This agreement reflects the continuous support provided by Yaqara Pastoral Company in the development of the Yaqara Studio City and identifies benefits that will allow Yaqara Pastoral Company to actively engage in the opportunities created by the development," said Philip Gerlach, Executive Chairman of PEL.

"While maintaining stringent environmental controls that will benefit the development of the Yaqara Studio City the agreement aims to address the continued farming and agricultural needs of the Yaqara Pastoral Company," he said.

Mr Buresova, the newly appointed Chairman of the Yaqara Pastorial Company, said, "We are delighted to be part of this partnership agreement which sets a precedent for cooperation between neighbouring business in the area.

"We have formed the Yaqara Joint Development Committee to ensure a continued strong relationship between the parties, based on mutual cooperation, communication, the coordination of activities and the sharing of ideas and plans that affect the Yaqara region," said Mr Buresova..

Both entities are aware of the need for development of the area to assist the local community while, at the same time, preserving Yaqara's unique natural beauty and cultural and historical significance.

The partnership agreement provides Yaqara Pastoral Company with continued access to the Yaqara Studio City lands for farming purposes in areas not currently under development and the Yaqara Pastoral Company has agreed to allow controlled access to PEL to its land for tourism and filming purposes and continued access to natural resources including waterways and air space.

Both parties have agreed on an 'environmental best practice' policy to be applied to development initiatives such as rebuilding the Waisai Catchment area, reforestation of the area, protection of native trees and other vegetation and the introduction of systems to minimise erosion.

Other key initiatives under the partnership agreement are:

• The Yaqara Pastoral Company will be provided first rights on the operation of a retail butchery outlet and fresh food produce market in the Yaqara Studio City and the first right to operate an equestrian centre or equivalent activities;
• Operational involvement in any Eco-Tourism activities;
• First rights to establish a venture for the management and operation of any farming and produce activities to be carried out on undeveloped areas within the Yaqara Studio City;

The parties have agreed to continue to work in harmony on the rehabilitation of the local environment and the town planning process to ensure:

• Maintenance of good water quality in the Yaqara River;
• Participation of local communities in environmental best practices through public awareness and education campaigns in schools and communities;
• Reduction of possible erosion and soil run off to prevent silting of waterways and damage to coral reefs;
• Active protection of the acquirer and the artesian basin and strategic management of this resource;
• Proactive and cooperative approach to best practice environmental practices;
• Best practice waste management systems.

Media Contact: Tracey Singh, Tahila Avenue tel: (679) 3323716