Investor Presentaiton

WATG has completed the Master Plan of Phase III; it is now with the Tourism Development Authority for approval Phase 3 Phase 1 Phase III shapes and brings online phased districts totaling 28 million square meters, and is the key to transforming the development from a pure resort to a thriving community. The WATG design introduces the heart of the city - hospitals, schools, office buildings and SMEs are among the developments that will shape a year-round municipal downtown at Sahl Hasheesh. Phase 2 RED SEA After the revolution the TDA withdrew land plots from many developers including ERC. The allocation of Phase III of Sahl Hasheesh was cancelled with the justification that ERC did not submit the master plan of Phase III. There were no prior notices for this withdrawal, which violates the land allocation agreement. ERC immediately submitted the master plan, which has been ready but undergoing minor fine adjustments and followed the legal steps by filing an appeal to the TDA to reverse this decision. • ERC also submitted an appeal to the Dispute Resolution Committee under the TDA. • ERC then filed a case against the TDA and the court forwarded the case to the Panel of Experts to investigate and report their opinion. ERC is optimistic of the outcome because of its strong legal position and because the government not only wants, but needs, to resolve all disputes that have crippled the real estate sector and the economy in general. 16 Investor Presentation 2012 ERC Egyptian Pesorts Company

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