J.P.Morgan Investment Banking

VALUATION SUMMARY Key assumptions K-2 Base Case ■ Atlantis, Phase III ■ Opens in 2007 ■ Total capital expenditures of $730mm ■ Atlantis, Pl (incl. Phase III) performance from 2006 to 2007 (when Phase III opens) ■ Average room rate grows 6.2% to $298.76 ■ Occupancy rate drops 1.8% to 80.3% ■ F&B per occupied room grows approx. 5% to $270.90 ■Win/table/day grows 12.7% to $3,172 ■Win/slot/day grows 14.6% to $238 ■ Atlantis, the Palm, Dubai ■Opens in 2009 ■ Total development/construction costs of $1.5bn ■Year 1 key assumptions Average room rate of $313 Occupancy of 78% 5,000 daily waterpark visitors 1,863 daily entertainment village visitors ■ Morocco ■ Opens in 2008 ■ Total development/construction costs of $300mm ■Year 1 key assumptions Average room rate of $140 Occupancy of 60% Win/table/day of $1,967 Win/slot/day of $131 JPMorgan K-2 Upside Case ■ K-2 Base Case plus the following: ■ Condotel development cost of $400 million; 50/50 JV with Turnberry ■ $45mm development of golf course on Athol Island completed in 2007 Development of Harborside - Phase II Two villa expansion of Palmilla ■ Marginally more aggressive assumptions on casino revenues in Morocco Adjusted Upside Case K-2 Upside Case plus the following: ■ 10% upside on Atlantis, Pl over management's Upside Case EBITDA projections in 2006 Based on analysis of K-2 management budgets vs. actual property results in 2003, 2004 and 2005 Over the past three years, K-2 has outperformed its 1-year forward budget by 12.4% K-2 Upside Case EBITDA growth in 2007 and thereafter ■ Cost synergy assumption of $5mm in LBO analysis Franchise value Additional upside from franchise value of Atlantis brand ■ Development of two additional resort projects over the next 10 years Paradise Island land value ■ 64.1 acres of undeveloped land ■ Cost basis of approximately $1.4mm/acre ■ Valued at $6mm/acre with a 5% annual appreciation PROJECT PLATO 8

View entire presentation