J.P.Morgan Investment Banking

VALUATION SUMMARY Key business risks Hurricane New supply Atlantis Phase III JPMorgan Construction costs Political Terrorism ■ A material disruption in operations on Paradise Island would have a severe negative impact on K-2's operating performance Impact of proposed Baha Mar development on Cable Beach may be significant ■ Demand for Atlantis, the Palm in light of plans for an additional 30 hotels on the Palm ■ Impact of proposed new supply in Massachusetts may be significant on Lincoln Park Uncertainty around feasibility of projected casino and F&B revenue per occupied room Uncertainty around success of dolphin attraction ■ Uncertainty around demand for condotel units at projected prices ■ Condotel financing gets renegotiated in light of degradation of credit from LBO Risks associated with escalating building materials and labor costs Vast majority of development budget in Dubai is not at fixed cost ■ Potential cost overruns at Lincoln Park and in Morocco Future cooperation of Dubai government and other foreign jurisdictions where development is expected Terrorist event in the U.S. could significantly impact leisure travel ■ Large destination resorts could be targets for terrorist organizations PROJECT PLATO 15

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