J.P.Morgan Investment Banking

PUBLIC MARKET OVERVIEW K-2 analyst commentary and stock price Wall Street estimates Revision date 2/22/2006 2/20/2006 2/15/2006 2/13/2006 12/7/2005 High Low Mean Median Source: Equity research Analyst (firm) Joseph Greff (Bear Stearns) Lawrence Klatzkin (Jefferies & Co) Steven Kent (Goldman Sachs) William Schmitt (CIBC) Marc Falcone (Deutsche Bank) Recommendation Source: Tradeline Buy Buy Hold Hold Buy JPMorgan EPS estimate 2006E $2.11 2.61 2.82 2.80 3.40 $3.40 $2.11 $2.75 $2.80 2007E $3.21 2.63 3.52 3.90 ΝΑ $3.90 $2.63 $3.32 $3.37 12-month target price $75.00 81.00 ΝΑ 71.00 79.00 Analyst commentary "Strong results were driven mainly by record performance at the company's Paradise Island properties, posting $29.8 million EBITDA, a 19% increase year over year" - Jefferies (2/14/06) $81.00 $71.00 $76.50 $77.00 "K-2's flagship property Atlantis continues to generate strong non-room revenue growth (F&B revenues up 23% and casino revenues up 22%) since it opened the Marina Village in July 2005. This growth should accelerate into Paradise Island seasonally stronger periods, namely 1Q and 2Q" - Bear Stearns (2/13/06) "Our sense is that the scope and financial impact of K-2's Phase III waterpark expansion is significantly underappreciated. A tour of Paradise Island showcased developable land after Phase III; we believe this also is underappreciated" - Deutsche Bank (12/7/05) PROJECT PLATO 5

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