Vale do Lobo Press Release

PRESS RELEASE - 21/12/06 - Vale do Lobo consolidates for the future
New Shareholders committed to ambitious development and international expansion.

Vale do Lobo has announced a new shareholder structure. The new owners of this luxury Algarve real estate and tourism group have substantially extended its commitment to the long term development of its business model. This will include its expansion into other geographic areas where the concept can be replicated under the same business model. The group has ensured financial strength in order to guarantee the necessary support for upcoming plans and further extensions. The new shareholders are Portuguese and international investors, with previous local and international real estate and tourism know-how, as well as the largest Portuguese bank, Caixa Geral de Depósitos.

The newly appointed CEO for the Group is Diogo Gaspar Ferreira, previous member of the Portuguese Board of the Dutch multinational Multi-Development Corporation. Sander van Gelder will remain as non-executive Chairman of the Group. The remaining Members of the Board, also non-executive, will be Rui Horta e Costa, former CFO of EDP and currently working for UBS Investment Banking in London, Francisco Cruz Martins, a well-known Portuguese lawyer and Jorge Guimarães, an experienced top manager representing Caixa Geral de Depósitos.

The Vale do Lobo Group will continue to develop the major projects that have been announced by the group over recent years, namely the development of Vale do Lobo II and III, an investment of 500 million euros, as well as the innovative plan of Nautilus Island, a one hundred hectare project which represents a potential total investment of 1,500 million euros.

Vale do Lobo Resort will continue to focus on its core objective of providing top quality service to its clients, resulting in a continuous value growth for the real estate owners. The new management team will maintain all key members of the existing team, ensuring absolute continuity with the recent past. A priority will be to continue a very close relationship with all members of the Vale de Lobo family (owners, clients, workers and suppliers).

In order to prepare its future development, Vale do Lobo will start looking for new sites/projects both in the Algarve as well as in other Mediterranean locations, with a view to launching a future International Luxury Resort Group, based on the Vale de Lobo internationally recognized brand, creating synergies of operation and know-how and giving to the Vale do Lobo clients the top quality services they have been getting used to in the last 30 years.

Vale do Lobo was the first development to be established in the Algarve, back in the early 1970s, and has made a remarkable evolution over the last 30 years, during which the luxury resort has been noted for unceasing expansion and improvement. Vale do Lobo’s property values have demonstrated consistent growth and continue to rise every year. In 2006, Vale do Lobo made a record turnover and profit.