**Exhibit 99.1**

 

PRL Developpement, S.A.S.

 

Consolidated Financial Statements

 

December 31, 2007, 2006 and 2005

 

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PRL DEVELOPMENT

A simplified business association with capital of EUR 693,000

Head office:  96-98 avenue RaymondPoincaré — 75016 Paris

 

 

 

 

 

CONSOLIDATEDFINANCIAL STATEMENTS

FOR THE FISCALYEAR ENDED DECEMBER 31, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUDITOR’S SPECIALREPORT

 

----

 

**CAPROGEGAUDIT**

*An accounting and auditing firm*

*RC Paris B 998 165 906 —*

 
| *Head  office*          |     |                   |
|-------------------------|----------|------------------------|
| *47 rue  de Courcelles* | * * | *Tel.: 01 53 89 02 40* |
| *75008  Paris*          | * * | *Fax: 01 53 89 02 49*  |
| *bmiquel@caprogec.com*  |     |                   |

 

**PRL DEVELOPPEMENT**

**A Simplified Business Association with capital of EUR 693,000**

**Head Office:  96-98 avenueRaymond Poincaré — 75016 Paris**

 

**AUDITOR’SSPECIAL REPORT**

 

**CONCERNINGTHE CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THEFISCAL YEAR ENDED DECEMBER 31, 2007**

 

Dear Sir:

 

Further to your requestand in our capacity as your company’s auditor, we audited the consolidatedfinancial statements for the fiscal year ended on December 31, 2007, asthey are appended to this report.

 

We performed our audit inaccordance with the professional standards adopted in France; these standardsrequire us to plan and perform out audit in order to obtain a reasonableassurance that the annual financial statements do not comprise any significantmisstatements.  An audit consists inanalyzing, on a test basis, the audit evidence supporting the data contained inthe financial statements.  It alsoconsists in assessing the accounting principles followed and the significantestimates used to draw up the financial statements and to assess their overallrepresentation.  We feel that our auditprovides a reasonable basis for the opinion expressed below.

 

We certify that theseconsolidated financial statements provide a faithful picture in all significantaspects of the financial situation of the entities included in the scope ofconsolidation as of December 31, 2007, and the result of their operationsfor the fiscal year that ended on this date.

 

Furthermore, we certifythat the audit standards used to audit these financial statements conform tothe generally accepted audit standards in the United States of America.

 

Done in Paris on June 30,2008

 

Bertrand MIQUEL

Statutory Auditor

 

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**PRLDEVELOPPEMENT**

 

----

 

A SimplifiedBusiness Association with capital of EUR 693,000

 

Head Office:  96-98, Avenue Raymond Poincaré

75116 PARIS

 

R.C.S. PARIS B 382312 700

 

 

 

 

 

 

 

 

**CONSOLIDATEDFINANCIAL STATEMENTS AS OF 12/31/2007**

 

----

 

| ** **                          | ** ** | ** **             | ** ** | **(Unaudited)**        | ** ** |
|-------------------------------------|------------|------------------------|------------|------------------------|------------|
| **BALANCE SHEET — ASSETS**     | ** ** | **Dec. 31, 2007** | ** ** | **Dec. 31, 2006** | ** ** |
|                                |       |                   |       |                   |       |
| Grants, patents  and similar rights |       | 0                      |       | 0                      |       |
| Other tangible  assets              |       | 0                      |       | 0                      |       |
| Equity interests  (mcs)             |       | 11,750,000             |       | 11,750,000             |       |
| Subtotal                            | ** ** | **11,750,000**         | ** ** | **11,750,000**         | ** ** |
| Goodwill                            |       | 0                      |       | 0                      |       |
| Outstanding  credit (*)             |       | 2,203,723              |       | 3,059,055              |       |
| Other  receivables                  |       | 0                      |       | 29,017                 |       |
| Cash and cash  equivalents          |       | 985,985                |       | 192,103                |       |
| Prepaid expenses                    |       | 2,837                  |       | 2,755                  |       |
| Subtotal                            | ** ** | **3,192,545**          | ** ** | **3,282,930**          | ** ** |
| Grand total                         | ** ** | **14,942,545**         | ** ** | **15,032,931**         | ** ** |

 

----

 

| **BALANCE SHEET — LIABILITIES**              | ** ** | **Dec. 31, 2007** | ** ** | **Dec. 31, 2006** | ** ** |
|---------------------------------------------------|------------|------------------------|------------|------------------------|------------|
|                                              |       |                   |       |                   |       |
| Capital                                           |       | 693,000                |       | 693,000                |       |
| Reserves and  carry forward                       |       | 9,877,646              |       | 7,207,405              |       |
| Result for the  period                            |       | 2,968,611              |       | 2,670,241              |       |
| Subtotal                                          | ** ** | **13,539,257**         | ** ** | **10,570,646**         | ** ** |
|                                              |       |                   |       |                   |       |
| Provisions and  expenses                          |       | 958,524                |       | 848,062                |       |
| Borrowing and  debts with credit institutions (*) |       | 223,744                |       | 3,361,336              |       |
| Accounts payable                                  |       | 83,519                 |       | 85,852                 |       |
| Tax and social  security liabilities              |       | 62,128                 |       | 88,280                 |       |
| Other  liabilities                                |       | 75,373                 |       | 78,755                 |       |
|                                              |       |                   |       |                   |       |
| Grand total                                       | ** ** | **14,942,545**         | ** ** | **15,032,931**         | ** ** |

 

----

 

prl-ubn (€)

 
| ** **                                        | ** ** | ** **                     | ** ** | **(Unaudited)**        | ** ** |
|---------------------------------------------------|------------|--------------------------------|------------|------------------------|------------|
| ** **                                        | ** ** | **Dec. 31, 2007  Totals** | ** ** | **Dec. 31, 2006** | ** ** |
|                                              |       |                           |       |                   |       |
| **OPERATING  INCOME**                             | ** ** | ** **                     | ** ** | ** **             | ** ** |
| Sales of goods                                    |       | 0                              |       | 0                      |       |
| Provision of  services                            |       | 0                              |       | 0                      |       |
| Financial income  — banking                  |       | 1,835,896                      |       | 1,717,001              |       |
| Financial  expenses — banking                |       | -4,463                         |       | -5,012                 |       |
| Other income                                      |       | 0                              |       | 0                      |       |
| Reversals of  provisions / transfer of expenses   |       | 0                              |       | 0                      |       |
| **Total (1)**                                     | ** ** | **1,831,433**                  | ** ** | **1,711,989**          | ** ** |
|                                              |       |                           |       |                   |       |
| **OPERATING  EXPENSES**                           | ** ** | ** **                     | ** ** | ** **             | ** ** |
| Purchases of  real estate lots                    |       | 0                              |       | 0                      |       |
| Change in  inventory                              |       | 0                              |       | 0                      |       |
| Other outside  purchases and expenses             |       | -722,198                       |       | -758,482               |       |
| Taxes                                             |       | -5,329                         |       | -173                   |       |
| Wages and  payroll taxes                          |       | -101,396                       |       | -123,121               |       |
| Depreciation/fixes  assets                        |       | 0                              |       | 0                      |       |
| Depreciation of  deferred expenses                |       | 0                              |       | 0                      |       |
| Allocations to  provisions for risks and expenses |       | 0                              |       | 0                      |       |
| Routine  management expenses                      |       | 0                              |       | 0                      |       |
| **Total (2)**                                     | ** ** | **-828,923**                   | ** ** | **-881,776**           | ** ** |
| ** **                                        | ** ** | ** **                     | ** ** | ** **             | ** ** |
| **Corrections  of receivables**                   | ** ** | ** **                     | ** ** | ** **             | ** ** |
| Unrecoverable  receivables                        |       | -5,010,293                     |       | -4,182,289             |       |
| Allocations to  provisions                        |       | -177,330                       |       | -139,127               |       |
| Reversals of  provisions                          |       | 6,789,833                      |       | 6,155,839              |       |
| Bad debts  written off and subsequently collected |       | 145,230                        |       | 107,167                |       |
| **Total (3)**                                     | ** ** | **1,747,440**                  | ** ** | **1,941,590**          | ** ** |
|                                              |       |                           |       |                   |       |
| **FINANCIAL  INCOME**                             | ** ** | **1,200,000**                  | ** ** | **1,000,000**          | ** ** |
| **FINANCIAL  EXPENSES**                           | ** ** | **-70,404**                    | ** ** | **-241,746**           | ** ** |
| ** **                                        | ** ** | ** **                     | ** ** | ** **             | ** ** |
| **FINANCIAL  EARNINGS**                           | ** ** | **1,129,596**                  | ** ** | **758,254**            | ** ** |
| ** **                                        | ** ** | ** **                     | ** ** | ** **             | ** ** |
| **INCOME  BEFORE EXCEPTIONAL ITEMS AND TAXES**    | ** ** | **3,879,546**                  | ** ** | **3,520,057**          | ** ** |
|                                              |       |                           |       |                   |       |
| **NON-RECURRING  INCOME**                         | ** ** | ** **                     | ** ** | ** **             | ** ** |
| From management  operations                       |       | 3,664                          |       | 0                      |       |
| Reversals of  provisions for securities           |       | -1                             |       | 0                      |       |
| **NON-RECURRING  EXPENSES**                       | ** ** | ** **                     | ** ** | ** **             | ** ** |
| Net book values  assets disposed of               |       | 0                              |       | 0                      |       |
| On management  operations                         |       | 0                              |       | 0                      |       |
|                                              |       |                           |       |                   |       |
| **NON-RECURRING  EARNINGS**                       | ** ** | **3,663**                      | ** ** | **0**                  | ** ** |
| ** **                                        | ** ** | ** **                     | ** ** | ** **             | ** ** |
| **INCOME  TAX**                                   | ** ** | **-914,598**                   | ** ** | **-859,817**           | ** ** |
| ** **                                        | ** ** | ** **                     | ** ** | ** **             | ** ** |
| **DEPRECIATION  OF CONSOLIDATED GOODWILL**        | ** ** | **0**                          | ** ** | **0**                  | ** ** |
|                                              |       |                           |       |                   |       |
| **NET  CONSOLIDATED EARNINGS**                    | ** ** | **2,968,611**                  | ** ** | **2,670,241**          | ** ** |

 

----

 

PRL

 

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

 

**FOR THE FISCAL YEAR ENDED ON DECEMBER 31, 2007**

 

Notesto the consolidated financial statements before distribution of the fiscal yearended on December 31, 2007, with a total of EUR 14,942,545 and an incomestatement showing a (consolidated) profit of EUR 2,968,611.

 

**1.             CONSOLIDATION PRINCIPLES ANDMETHODS**

 

**1.1.         General principles:**

 

Theconsolidated financial statements for the PRL DEVELOPPEMENT Group were preparedin accordance with the provisions of CRC Regulation 99.02 concerningconsolidated financial statements.

 

**1.1.1.      Information related to the scope ofconsolidation**

 

a)  Consolidated companies:

 

Thescope of consolidation for fiscal year 2007 is as follows:

 

-      UBN

 

96-98avenue Raymond Poincaré — 75016 PARIS

SIRETNo.:  542 037 114 00064

 

b)Percentage of control and consolidation method

 

-      Percentageof control:

 

·      UBN                           100%

 

-      Consolidation method:    full

 

**1.1.2.  Accounting principles:**

 

                a)  Full method:

 

Eliminationof the reciprocal accounts and flows from the items of the balance sheet andfrom the income statement.

 

b)  Treatment of goodwill on acquisition:

 

Positivegoodwill recorded at the time of acquisition of the UBN shares, i.e., EUR112,813 accounted for as intangible assets was depreciated over two fiscalyears. This goodwill was completely depreciated on December 31, 2004.

 

----

 

PRL

Financial statements s of 12/31/2007

 

**CHANGESIN THE NET SITUATION**

 

 

 

Inthousands of euros

 
| ** **                  | ** ** | **12/31/2006** | ** ** | **ALLOCATION  RESULT  2006** | ** ** | **OTHER  MOVEMENTS** | ** ** | **12/31/2007** | ** ** |
|-----------------------------|------------|----------------|------------|------------------------------|------------|----------------------|------------|----------------|------------|
| ** **                  | ** ** | ** **     | ** ** | ** **                   | ** ** | ** **           | ** ** | ** **     | ** ** |
| Capital                     |       | 693            |       |                         |       | —               |       | 693            |       |
| Reserves                    |       | 7,208          |       | 2,670                        |       | —               |       | 9,878          |       |
| Result for the  fiscal year |       | 2,670          |       | (2,670                       | )          | —               |       | 2,968          |       |
| **TOTAL**                   |       | 10,571         |       | 0                            |       | —               |       | 13,539         |       |

 

----

 

PRL

Financial statements as of 12/31/2007

 

**CLIENTCREDIT AND PROVISIONS**

 

Creditsgranted to clients are recorded as assets at their face value, net ofprovisions and co-participants.

 

Ifa probable risk of partial or total non-recovery appears for the outstandingamounts plus the balance of the initial credit, provisions are set up throughwithdrawals from the general fixed provision allocated for this purpose duringfiscal year 1995.

 

Thebalance of this provision must make it possible to cover the residual net risksof any kind adequately.

 

Asa result, the net expenses for the fiscal year for these same risks ofnon-recovery are covered by withdrawal from this fixed general provision.

 

Onthe other hand, reversals of provisions concern collections or debts writtenoff as losses that were previously covered by provisions.

 

**TAXCONSOLIDATION**

 

Inaccordance with the provisions of article 68 of finance act No. 87.1060 ofDecember 30, 1987, UBN opted as of January 1, 2005, for the taxconsolidation system and was included in the tax consolidation perimeter of thePRL Developpement Group; since PRL Developpement Group is liable only for thecorporate tax for the Group, UBN never recorded any tax expenses for fiscalyear 2007.

 

----

 

PRL

 

Financial statements as of 12/31/2007

 

**CHANGE IN DEPRECIATION AND PROVISIONS FOR FIXED ASSETS**

 

Inthousands of euros

 
| ** **                             | ** ** | **12/31/2007** | ** ** | **12/31/2006** | ** ** | **CHANGE** | ** ** |
|----------------------------------------|------------|----------------|------------|----------------|------------|------------|------------|
| Equipment                              |       | 0              |       | 290            |       | -290       |       |
| Intangible assets excluding operations |       | 0              |       | 12             |       | -12        |       |
| Tangible assets excluding operations   |       | 0              |       | 0              |       | 0          |       |
|                                   |       |           |       |           |       |       |       |
| **SUBTOTAL**                           | ** ** | **0**          | ** ** | **302**        | ** ** | **-302**   | ** ** |
| ** **                             | ** ** | ** **     | ** ** | ** **     | ** ** | ** ** | ** ** |
| **TOTAL  NET FIXED ASSETS**            | ** ** | **0**          | ** ** | **0**          | ** ** | **0**      | ** ** |

 

**CHANGE IN OUTSTANDING CREDITS**

 

Inthousands of euros

 
| ** **               | ** ** | **12/31/2006** | ** ** | **CANCELLATIONS** | ** ** | **COLLECTIONS** | ** ** | **12/31/2007** | ** ** |
|--------------------------|------------|----------------|------------|-------------------|------------|-----------------|------------|----------------|------------|
| Healthy and  outstanding |       | 1.85           |       |              |       | -0.42           |       | 1.43           |       |
|                     |       |           |       |              |       |            |       |           |       |
| Disputed                 |       | 55.15          |       | 0.1               |       | -7.24           |       | 48.01          |       |
|                     |       |           |       |              |       |            |       |           |       |
| TOTAL                    |       | 57             |       | 0.1               |       | -7.66           |       | 49.44          |       |

 

----

 

PRL

 

Financial statements as of 12/31/2007

 

PROVISIONS FOR DOUBTFULDEBTS AND BANKING RISKS

 

In thousands of euros

 

 
| ** **                       | ** ** | **12/31/2006** | ** ** | **CHANGE — FISCAL YEAR** | ** ** | **12/31/2007**  | ** ** |
|----------------------------------|------------|----------------|------------|-------------------------------|------------|-----------------|------------|
| ** **                       | ** ** | ** **     | ** ** | **TRANSFERS**                 | ** ** | **WITHDRAWALS** | ** ** | **ALLOCATIONS** | ** ** | **USES** | ** ** | **REVERSALS** | ** ** | ** ** | ** ** |
| Capital                          | ** ** | 44.04          | ** ** | -6.44                         | ** ** | ** **      | ** ** |   | ** ** | ** ** | ** ** | ** ** | ** ** | 37.6 | ** ** |
| Interest                         |       | 9.92           |       |                          |       |            |       | 0 |   |   |   | -0.29 |   | 9.63 |   |
| Fixed                            |       | 0              |       | 6.44                          |       | 0               |       |   |   |   |   | -6.44 |   | 0 |   |
| Risks and expenses (Liabilities) |       | 0.96           |       |                          |       |            |       | 0.17 |   |   |   | -0.06 |   | 0.97 |   |
|                             |       |           |       |                          |       |            |       |   |   |   |   |   |   |   |   |
| TOTAL                            |       | 54.82          |       | 0                             |       | 0               |       | 0.17 |   | 0 |   | -6.79 |   | 48.2 |   |

 

AVERGEWORKFORCE

 
| ** **  | ** ** | **SALARIED  PERSONNEL** | ** ** | **PERSONNEL  MADE   AVAILABLE** | ** ** |
|-------------|------------|-------------------------|------------|---------------------------------|------------|
| Executives  |       | 0.5                     |       |                            |       |
| Supervisors |       |                    |       |                            |       |
| Employees   |       |                    |       |                            |       |
|        |       |                    |       |                            |       |
| WORK FORCE  |       | 0.5                     |       |                            |       |

 

----

 

PRL DEVELOPPEMENT

 

CONSOLIDATEDANNUAL FINANCIAL STATEMENTS

 

AS OF DECEMBER 31,2006

 

 

A businesscorporation [société anonyme]

with capital ofEUR 693,000

CorporateHeadquarters:  96-98 avenue RaymondPoincaré

75016 PARIS

 

----

 

PRL DEVELOPPEMENT

 

CONTENTS

 
| ·  Balance sheet as of December 31, 2006                           | p. 1 and 2        |
|------------------------------------------------------------------------------|-------------------|
|                                                                         |              |
| · Income  statement from January 1, 2006 to December 31, 2006 | p. 3              |
|                                                                         |              |
| · Notes                                                                 | p. 4 & 5 |
|                                                                         |              |
| ·  Itemized balance sheet accounts                                      | p. 6 to 9         |
|                                                                         |              |
| ·  Itemized income statement                                            | p. 10             |

 

----

 

PRL GROUP

 

**Balance Sheet – Assets**

 
| ** **                                    | ** ** | ** ** | ** ** | **As of Length** | ** ** | **12/31/06**           | ** ** | **12/31/05**       | ** ** |
|-----------------------------------------------|------------|------------|------------|-----------------------|------------|------------------------|------------|--------------------|------------|
| ** **                                    | ** ** | ** ** | ** ** | ** **            | ** ** | **Deprec. &** | ** ** | **12 months** | ** ** | **12 months** | ** ** |
| ** **                                    | ** ** | ** ** | ** ** | **Gross**             | ** ** | **Prov.**              | ** ** | **Net**            | ** ** | **Net** | ** ** |
| Capital, subscribed, not called               |       |       |       |                  |       |                   |       |               |       |   |   |
| **FIXED ASSETS**                              | ** ** | ** ** |       |                  |       |                   |       |               |       |   |   |
| **Intangible assets**                         | ** ** | ** ** |       |                  |       |                   |       |               |       |   |   |
| Setup costs                                   |       |       |       |                  |       |                   |       |               |       |   |   |
| Research and Development costs                |       |       |       |                  |       |                   |       |               |       |   |   |
| Grants, patents and similar rights            |       |       |       | 112,813               |       | 112,813                |       |               |       |   |   |
| Goodwill                                      |       |       |       |                  |       |                   |       |               |       |   |   |
| Other intangible assets                       |       |       |       |                  |       |                   |       |               |       |   |   |
| Advances and installments                     |       |       |       |                  |       |                   |       |               |       |   |   |
| **Tangible assets**                           | ** ** | ** ** |       |                  |       |                   |       |               |       |   |   |
| Property                                      |       |       |       |                  |       |                   |       |               |       |   |   |
| Buildings                                     |       |       |       |                  |       |                   |       |               |       |   |   |
| Plant and equipment                           |       |       |       |                  |       |                   |       |               |       |   |   |
| Other tangible assets                         |       |       |       | 289,675               |       | 289,657                |       |               |       |   |   |
| Construction work in progress                 |       |       |       |                  |       |                   |       |               |       |   |   |
| Advances and installments                     |       |       |       |                  |       |                   |       |               |       |   |   |
| **Long-term investments**                     | ** ** | ** ** |       |                  |       |                   |       |               |       |   |   |
| Equity interests                              |       |       |       | 11,750,000            |       |                   |       | 11,750,000         |       | 11,750,000 |   |
| Attached receivables                          |       |       |       |                  |       |                   |       |               |       |   |   |
| Other fixed investments                       |       |       |       |                  |       |                   |       |               |       |   |   |
| Loans granted                                 |       |       |       |                  |       |                   |       |               |       |   |   |
| Other long-term investments                   |       |       |       |                  |       |                   |       |               |       |   |   |
| **TOTAL**                                     |       | (I)        |       | 12,152,488            |       | 402,488                |       | 11,750,000         |       | 11.750,000 |   |
| **CURRENT ASSETS**                            | ** ** | ** ** |       |                  |       |                   |       |               |       |   |   |
| Inventories and production in progress        |       |       |       |                  |       |                   |       |               |       |   |   |
| Goodwill, excluding operations                |       |       |       | 12,196                |       | 12,196                 |       |               |       |   |   |
| Outstanding credit                            |       |       |       | 57,016,501            |       | 53,967,445             |       | 3,059,055          |       | 4,830,881 |   |
|                                          |       |       |       |                  |       |                   |       |               |       |   |   |
| Advances and installments paid on orders      |       |       |       |                  |       |                   |       |               |       |   |   |
| Operating receivables                         |       |       |       |                  |       |                   |       |               |       |   |   |
| Accounts receivable                           |       |       |       |                  |       |                   |       |               |       |   |   |
| Other receivables                             |       |       |       | 29,017                |       |                   |       | 29.017             |       | 143,286 |   |
| Capital subscribed & called, not paid     |       |       |       |                  |       |                   |       |               |       |   |   |
| Investment securities                         |       |       |       |                  |       |                   |       |               |       |   |   |
| including own shares                          |       |       |       |                  |       |                   |       |               |       |   |   |
| Cash and cash equivalents                     |       |       |       | 192,103               |       |                   |       | 192,103            |       | 103,027 |   |
| **ACCRUALS ASSET ACCOUNT**                    | ** ** | ** ** |       |                  |       |                   |       |               |       |   |   |
| Prepaid expenses                              |       |       |       | 2,755                 |       |                   |       | 2,775              |       | 3,587 |   |
| **TOTAL**                                     |       | (II)       |       | 57,252,572            |       | 53,969,641             |       | 3,282,931          |       | 5,080,780 |   |
| Deferred expenses                             |       | (III)      |       |                  |       |                   |       |               |       |   |   |
| Bond redemption premiums                      |       | (IV)       |       |                  |       |                   |       |               |       |   |   |
| Currency translation adjustment – assets |       | (V)        |       |                  |       |                   |       |               |       |   |   |
|                                          |       |       |       |                  |       |                   |       |               |       |   |   |
| **GRAND TOTAL**                               | ** ** | **(I-V**)  |       | 69,405,060            |       | 54,372,129             |       | 15,032,931         |       | 16,830,780 |   |

 

1

----

 

**Balance Sheet – Liabilities**

 
| ** **                                         | ** ** | ** **     | ** ** | **12/31/06**       | ** ** | **12/31/05**       | ** ** |
|----------------------------------------------------|------------|----------------|------------|--------------------|------------|--------------------|------------|
| ** **                                         | ** ** | **As of** | ** ** | **12 months** | ** ** | **12 months** | ** ** |
| ** **                                         | ** ** | **Length**     | ** ** | **Net**            | ** ** | **Net**            | ** ** |
| **EQUITY CAPITAL**                                 |       |           |       |               |       |               |       |
| Capital (Including paid:                           |       |           |       | 693,000            |       | 693,000            |       |
| Issue, merger, contribution premiums               |       |           |       |               |       |               |       |
| Revaluation reserve                                |       |           |       |               |       |               |       |
| Reserves                                           |       |           |       |               |       |               |       |
| Legal reserve                                      |       |           |       |               |       |               |       |
| Statutory or contractual reserves                  |       |           |       |               |       |               |       |
| Regulated reserves                                 |       |           |       |               |       |               |       |
| Consolidated reserves                              |       |           |       | 7,207,405          |       | 4,929,623          |       |
| Carry forward                                      |       |           |       |               |       |               |       |
| **PROFIT FOR THE FISCAL YEAR**                     |       |           |       | 2,670,241          |       | 2,277,782          |       |
| Investment subsidies                               |       |           |       |               |       |               |       |
| Regulated provisions                               |       |           |       |               |       |               |       |
|                                               |       |           |       |               |       |               |       |
| **TOTAL**                                          |       | (I)            |       | 10,570,646         |       | 7,900,405          |       |
|                                               |       |           |       |               |       |               |       |
| **OTHER EQUITY CAPITAL**                           |       |           |       |               |       |               |       |
| Income from issues of participating securities     |       |           |       |               |       |               |       |
| Conditional advances                               |       |           |       |               |       |               |       |
|                                               |       |           |       |               |       |               |       |
| **TOTAL**                                          |       | (II)           |       |               |       |               |       |
| **PROVISIONS FOR RISKS AND EXPENSES**              |       |           |       |               |       |               |       |
| Provisions for risks                               |       |           |       | 848,062            |       | 1,219,615          |       |
| Provisions for expenses                            |       |           |       |               |       |               |       |
|                                               |       |           |       |               |       |               |       |
| TOTAL                                              |       | (III)          |       | 848,062            |       | 1,219,615          |       |
|                                               |       |           |       |               |       |               |       |
| **LIABILITIES**                                    |       |           |       |               |       |               |       |
| Convertible bond loans                             |       |           |       |               |       |               |       |
| Other bond loans                                   |       |           |       |               |       |               |       |
| Borrowing and debts with credit institutions       |       |           |       | 3,361,336          |       | 7,361,042          |       |
| Misc. borrowing and financial debts                |       |           |       |               |       |               |       |
| Advances and installments on orders in progress    |       |           |       |               |       |               |       |
| Accounts payable                                   |       |           |       | 85,852             |       | 226,312            |       |
| Tax and social security liabilities                |       |           |       | 88,280             |       | 18,305             |       |
| Liabilities on fixed assets and related accounts   |       |           |       |               |       |               |       |
| Other liabilities                                  |       |           |       | 78,755             |       | 105,102            |       |
|                                               |       |           |       |               |       |               |       |
| **ACCRUALS LIABILITY ACCOUNT**                     |       |           |       |               |       |               |       |
| Deferred income                                    |       |           |       |               |       |               |       |
| **TOTAL**                                          |       | (IV)           |       | 3,614,223          |       | 7,710,761          |       |
| Currency translation adjustment – Liabilities |       | (V)            |       |               |       |               |       |
|                                               |       |           |       |               |       |               |       |
| **GRAND TOTAL**                                    | ** ** | **(I-V**)      |       | 15,032,931         |       | 16,830,780         |       |

 

2

----

 

PRL DEVELOPPEMENT

ITEMIZED CONSOLIDATED INCOME STATEMENT

 
| ** **                                                      | ** ** | **Dec. 31, 2006** | ** ** | **Dec. 31, 2005** | ** ** |
|-----------------------------------------------------------------|------------|-----------------------------|------------|-----------------------------|------------|
| OPERATING INCOME                                                |       |                        |       |                        |       |
| Services provided                                               |       |                        |       |                        |       |
| Financial income – banking                                 |       | 1,717,001                   |       | 1,646,299                   |       |
| Financial expenses – banking                               |       | -5,012                      |       | -50,926                     |       |
| Other income                                                    |       |                        |       |                        |       |
| Share of joint operations                                       |       |                        |       |                        |       |
| Income from receivables                                         |       |                        |       |                        |       |
| Reversals of provisions/Transfer of expenses                    |       |                        |       |                        |       |
| Total (1)                                                       |       | 1,711,989                   |       | 1,595,372                   |       |
| OPERATING EXPENSES                                              |       |                        |       |                        |       |
| Other outside purchases and expenses                            |       | -758,482                    |       | -1,227,340                  |       |
| Taxes and similar payments                                      |       | -173                        |       | 5,294                       |       |
| Wages and salaries                                              |       | -95,626                     |       | -84,033                     |       |
| Payroll taxes                                                   |       | -27,495                     |       | -35,978                     |       |
| Depreciation/fixed assets                                       |       |                        |       |                        |       |
| Depreciation deferred expenses                                  |       |                        |       |                        |       |
| Contributions to provisions for risks and expenses              |       |                        |       |                        |       |
| Misc. routine management expenses/unrecoverable  receivables    |       |                        |       |                        |       |
| Total (2)                                                       |       | -881,775                    |       | -1,342,058                  |       |
| ADJUSTMENT OF RECEIVABLES VALUE                                 |       |                        |       |                        |       |
| Unrecoverable receivables                                       |       | -4,182,289                  |       | -8,210,622                  |       |
| Allocations to provisions                                       |       | -139,127                    |       | -568,382                    |       |
| Reversals of provisions                                         |       | 6,155,839                   |       | 10,834,720                  |       |
| Collection of written-down debt                                 |       | 107,167                     |       | 161,656                     |       |
| Net capital loss disposal of real property excluding  operation |       |                        |       |                        |       |
| Total (3)                                                       |       | 1,941,591                   |       | 2,217,372                   |       |
|                                                            |       |                        |       |                        |       |
| FINANCIAL INCOME                                                |       | 1,000,000                   |       | 750,000                     |       |
|                                                            |       |                        |       |                        |       |
| FINANCIAL EXPENSES                                              |       | -241,746                    |       | -142,583                    |       |
|                                                            |       |                        |       |                        |       |
| FINANCIAL PROFIT/LOSS                                           |       | 758,254                     |       | 607,417                     |       |
|                                                            |       |                        |       |                        |       |
| NON-RECURRING INCOME                                            |       | 3,530,058                   |       | 3,078,104                   |       |
| on management operations                                        |       |                        |       |                        |       |
| Income from disposals of assets                                 |       |                        |       |                        |       |
| Reversal of provisions for securities                           |       |                        |       |                        |       |
| Reversal of provisions for risks                                |       |                        |       |                        |       |
|                                                            |       |                        |       |                        |       |
| NON-RECURRING EXPENSES                                          |       |                        |       |                        |       |
| Provisions for risk / non-recurring depreciation                |       |                        |       |                        |       |
| Net book value of assets disposed of                            |       |                        |       |                        |       |
| On capital operations                                           |       |                        |       |                        |       |
| On management operations                                        |       |                        |       |                        |       |
| Non-recurring depreciation of fixed assets                      |       |                        |       |                        |       |
|                                                            |       |                        |       |                        |       |
| NON-RECURRING PROFIT/LOSS                                       |       | 0                           |       | 0                           |       |
|                                                            |       |                        |       |                        |       |
| DEPRECIATION OF GOODWILL ON ACQUISITION                         |       | 0                           |       | 0                           |       |
|                                                            |       |                        |       |                        |       |
| TAX ON PROFITS                                                  |       | -859,817                    |       | -800,322                    |       |
|                                                            |       |                        |       |                        |       |
| NET PROFIT/LOSS FOR THE ENTIRE GROUP                            |       | 2,670,241                   |       | 2,277,782                   |       |

 

3

----

 

PRL DEVELOPPEMENT

 

NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS

 

FOR THE FISCALYEAR ENDED ON DECEMBER 31, 2006

 

Notes to theconsolidated balance sheet, before allocation of the fiscal year ended on December 31,2006, totaling EUR 15,032,931 and to the income statement for the fiscal yearshowing a profit (Group share) of EUR 2,670,241.

 
| 1. |   | CONSOLIDATATION  PRINCIPLES AND METHODS: |
|----|--------|------------------------------------------|

 
| 1.1. |   | General  principles: |
|------|--------|----------------------|

 

The consolidatedfinancial statements for the PRL DEVELOPPEMENT Group were prepared inaccordance with the provisions of Rule CRC 99.02 on consolidated financialstatements.

 

1.1.1.  Informationconcerning the scope of consolidation

 

a)  Consolidated companies:

 

The scope ofconsolidation for fiscal year 2006 is as follows:

 
| · |   | UBN                                                    |
|--------|--------|--------------------------------------------------------|
|   |   | 96-98 avenue  Raymond Poincaré – 75016 PARIS |
|   |   | SIRET No.: 542  037 114 00064                          |

 

b)  Percent control and consolidation method

 
| · |                   | Percentage of  control: |
|--------|------------------------|-------------------------|
|   |                   |                    |
|   |                   | UBN                     | 100% |
|   |                   |                    |
|   |                   |                    |
| · | Consolidation  method: | full                    |
|        |                        |                         |  |  |

 

1.1.2.  Accounting principles:

 

a)   Full consolidation method:

 

Elimination of the financial statements and reciprocal flows in theitems of the balance sheet and the income statement.

 

c)  Handling of goodwill on acquisition:

 

Positive goodwill on acquisition recorded at the time of acquisition ofthe UBN shares, i.e., EUR 112,813 accounted for as intangible assets, wasdepreciated over two fiscal years.  Thisgoodwill was fully depreciated on December 31, 2004.

 

4

----

 

PRL DEVELOPPEMENT

 

d)  Other methods

 

The other accounting methods are those used to close prepare thefinancial statements for the companies included in the scope of consolidation.

 

5

----

 

PRL GROUP

 

**ItemizedBalance Sheet – Assets**

** **
| **Closed on**                          | ** ** | **12/31/06**       | ** ** | **12/31/05**       | ** ** |
|---------------------------------------------|------------|--------------------|------------|--------------------|------------|
| **Length**                                  | ** ** | **12 months** | ** ** | **12 months** | ** ** |
|                                        |       |               |       |               |       |
| **FIXED ASSETS**                            |       |               |       |               |       |
| ** **                                  |       |               |       |               |       |
| **Grants, patents, similar rights**         |       |               |       |               |       |
| Goodwill on acquisition ubn                 |       | 112,813.00         |       | 112,813.00         |       |
| Depreciation of goodwill on acquisition ubn |       | -112,813.00        |       | -112,813.00        |       |
|                                        |       |               |       |               |       |
| **Other tangible assets**                   |       |               |       |               |       |
| Other tangible assets                       |       | 289,675.11         |       | 579,350.21         |       |
| Depreciation of other tangible assets       |       | 289,675.12         |       | -579,350.21        |       |
|                                        |       |               |       |               |       |
| **Total**                                   |       |               |       |               |       |
|                                        |       |               |       |               |       |
| Long-term investments                       |       |               |       |               |       |
| Equity interests                            |       |               |       |               |       |
| Mcs shares                                  |       | 11,750,000.00      |       | 11,750,000.00      |       |
| **Total**                                   |       | 11,750,000.00      |       | 11,750,000.00      |       |
|                                        |       |               |       |               |       |
| **TOTAL I**                                 |       | 11,749,999.99      |       | 11,750,000.00      |       |
| ** **                                  |       |               |       |               |       |
| **CURRENT ASSETS**                          |       |               |       |               |       |
|                                        |       |               |       |               |       |
| Inventories and work in progress            |       |               |       |               |       |
| **Raw materials and other supplies**        |       |               |       |               |       |
| Goodwill excluding ops. ubn                 |       | 12,195.92          |       | 12,195.92          |       |
| Prov. for impairment goodwill ubn           |       | -12,195.92         |       | -12,195.92         |       |
|                                        |       |               |       |               |       |
| **Goods in production**                     |       |               |       |               |       |
| Loans                                       |       | 1,083,626.98       |       | 1,650,223.47       |       |
| Doubtful loans                              |       | 55,930,895.75      |       | 62,779,510.98      |       |
| Interest accrued on loans                   |       | 1,978.00           |       | 3,751.00           |       |
| Prov. for loan impairment                   |       | -53,957,445.28     |       | -59,602,604.90     |       |
|                                        |       |               |       |               |       |
| **Total**                                   | ** ** | **3,059,055.45**   | ** ** | **4,830,880.55**   | ** ** |
|                                        | ** ** | ** **         | ** ** | ** **         | ** ** |
| **Other receivables**                       | ** ** | ** **         | ** ** | ** **         | ** ** |
| Tax/social security debtors                 |       | 59.5               |       | 21.00              |       |
| Corporation tax                             |       |               |       | 106,000.00         |       |
| Other receivables                           |       | 28,957.64          |       | 37,264.63          |       |
|                                        |       |               |       |               |       |
| **Total**                                   | ** ** | **29,017.14**      | ** ** | **143,285.63**     | ** ** |
|                                        |       |               |       |               |       |
| **Cash and cash equivalents**               |       |               |       |               |       |
| Cash and cash equivalents prl               |       | 7,796.40           |       | 336.37             |       |
| Cash and cash equivalents ubn               |       | 184,306.70         |       | 102,691.04         |       |
|                                        |       |               |       |               |       |
| **Total**                                   | ** ** | **192,103.10**     | ** ** | **103,027.41**     | ** ** |
|                                        | ** ** | ** **         | ** ** | ** **         | ** ** |
| **PREPAID EXPENSES**                        | ** ** | ** **         | ** ** | ** **         | ** ** |
| Prepaid expenses                            |       | 2,755.02           |       | 3,586.86           |       |
| **Total**                                   | ** ** | **2,755.02**       | ** ** | **3,586.86**       | ** ** |
|                                        | ** ** | ** **         | ** ** | ** **         | ** ** |
| TOTAL II                                    | ** ** | **3,282,930.71**   | ** ** | **5,080,780.45**   | ** ** |

 

6

----

 

PRL GROUP

 

**ItemizedBalance Sheet – Assets**

** **
| **Closed on** | ** ** | **12/31/06**       | ** ** | **12/31/05**       | ** ** |
|--------------------|------------|--------------------|------------|--------------------|------------|
| **Length**         | ** ** | **12 months** | ** ** | **12 months** | ** ** |
|               |       |               |       |               |       |
| GRAND TOTAL        | ** ** | **15,032,930.70**  | ** ** | **16,839,780.45**  | ** ** |

 

7

----

 

PRL GROUP

 

**ItemizedBalance Sheet – Liabilities**

 
| **Closed on**                            | ** ** | **12/31/06**       | ** ** | **12/31/05**       | ** ** |
|-----------------------------------------------|------------|--------------------|------------|--------------------|------------|
| **Length**                                    | ** ** | **12 months** | ** ** | **12 months** | ** ** |
|                                          |       |               |       |               |       |
| **EQUITY CAPITAL**                            |       |               |       |               |       |
|                                          |       |               |       |               |       |
| **Capital**                                   |       |               |       |               |       |
| Capital                                       |       | 693,000.00         |       | 693,000.00         |       |
| **Total**                                     | ** ** | **693,000.00**     | ** ** | **693,000.00**     | ** ** |
| ** **                                    | ** ** | ** **         | ** ** | ** **         | ** ** |
| **Other reserves**                            | ** ** | ** **         | ** ** | ** **         | ** ** |
| Consolidated reserves                         |       | 7,207,404.66       |       | 4,929,623.16       |       |
| ** **                                    | ** ** | ** **         | ** ** | ** **         | ** ** |
| **Total**                                     | ** ** | **7,207,404.66**   | ** ** | **4,929,623.16**   | ** ** |
| ** **                                    | ** ** | ** **         | ** ** | ** **         | ** ** |
| **PROFIT/LOSS FOR THE FISCAL YEAR**           | ** ** | **2,670,241.17**   | ** ** | **2,277,781.50**   | ** ** |
| **Total**                                     | ** ** | **2,670,241.17**   | ** ** | **2,277,781.50**   | ** ** |
| ** **                                    | ** ** | ** **         | ** ** | ** **         | ** ** |
| **TOTAL I**                                   | ** ** | **10,570,645.83**  | ** ** | **7,900,404.66**   | ** ** |
| **PROVISIONS FOR RISKS AND EXPENSES**         | ** ** | ** **         | ** ** | ** **         | ** ** |
| ** **                                    | ** ** | ** **         | ** ** | ** **         | ** ** |
| **Provisions for risks**                      | ** ** | ** **         | ** ** | ** **         | ** ** |
| Provisions for risks ubn                      |       | 848,062.00         |       | 1,219,614.65       |       |
| **Total**                                     | ** ** | **848,062.00**     | ** ** | **1,219,614.65**   | ** ** |
| ** **                                    | ** ** | ** **         | ** ** | ** **         | ** ** |
| **TOTAL III**                                 | ** ** | **848,062.00**     | ** ** | **1,219,614.65**   | ** ** |
| **LIABILITIES**                               | ** ** | ** **         | ** ** | ** **         | ** ** |
| ** **                                    | ** ** | ** **         | ** ** | ** **         | ** ** |
| **Borrowing, debts with credit institutions** | ** ** | ** **         | ** ** | ** **         | ** ** |
| Besv borrowing                                |       | 3,000,000.00       |       | 7,000,000.00       |       |
| Coparticipants ubn                            |       | 308,633.01         |       | 300,193.06         |       |
| Accrued interest besv borrowing               |       | 52,601.67          |       | 60,589.68          |       |
| Accrued interest prl                          |       | 101.18             |       | 259.22             |       |
|                                          |       |               |       |               |       |
| **Total**                                     | ** ** | **3,361,335.86**   | ** ** | **7,361,041.96**   | ** ** |
| ** **                                    | ** ** | ** **         | ** ** | ** **         | ** ** |
| **Suppliers**                                 |       |               |       |               |       |
| Supplier                                      |       | 66,849.39          |       | 208,815.80         |       |
| **Total**                                     | ** ** | **66,849.39**      | ** ** | **208,815.80**     | ** ** |
| ** **                                    | ** ** | ** **         | ** ** | ** **         | ** ** |
| **Suppliers: related accounts**               | ** ** | ** **         | ** ** | ** **         | ** ** |
| Supplier invoices not yet received            |       | 19,002.49          |       | 17,496.16          |       |
| **Total**                                     | ** ** | **19,002.49**      | ** ** | **17,496.16**      | ** ** |
| ** **                                    | ** ** | ** **         | ** ** | ** **         | ** ** |
| **Tax and social security liabilities**       | ** ** | ** **         | ** ** | ** **         | ** ** |
| Tax and social security liabilities           |       | 16,959.36          |       | 18,304.95          |       |
| Corporation tax                               |       | 71,321.00          |       |               |       |
| **Total**                                     | ** ** | **88,280.36**      | ** ** | **18,304.95**      | ** ** |
| ** **                                    | ** ** | ** **         | ** ** | ** **         | ** ** |
| **Other liabilities**                         | ** ** | ** **         | ** ** | ** **         | ** ** |
| Misc. creditors                               |       | 78,754.77          |       | 105,102.27         |       |
| **Total**                                     | ** ** | **78,754.77**      | ** ** | **105,102.27**     | ** ** |
| ** **                                    | ** ** | ** **         | ** ** | ** **         | ** ** |
| **TOTAL IV**                                  | ** ** | **3,614,222.87**   | ** ** | **7,710,761.14**   | ** ** |

 

8

----

 

PRL GROUP

 

**ItemizedBalance Sheet – Liabilities**

** **
| **Closed on** | ** ** | **12/31/06**       | ** ** | **12/31/05**       | ** ** |
|--------------------|------------|--------------------|------------|--------------------|------------|
| **Length**         | ** ** | **12 months** | ** ** | **12 months** | ** ** |
|               |       |               |       |               |       |
| **GRAND TOTAL**    | ** ** | **15,032,930.70**  | ** ** | **15,830,780.00**  | ** ** |

 

9

----

 

PRL DEVELOPPEMENT

ITEMIZED CONSOLIDATED INCOME STATEMENT   Dec. 31, 2006

 
| ** **                                                      | ** ** | **PRL**   | ** ** | **UBN**    | ** ** | **Elim.  recip.  ops.** | ** ** | **TOTALS** | ** ** |
|-----------------------------------------------------------------|------------|-----------|------------|------------|------------|-------------------------|------------|------------|------------|
| OPERATING INCOME                                                |       |      |       |       |       |                    |       |       |       |
| Services provided                                               |       |      |       |       |       |                    |       |       |       |
| Financial income – banking                                 |       |      |       | 1,717,001  |       |                    |       | 1,717,001  |       |
| Financial expenses – banking                               |       |      |       | -5,012     |       |                    |       | -5,012     |       |
| Self-constructed assets                                         |       |      |       |       |       |                    |       |       |       |
| Other income                                                    |       |      |       |       |       |                    |       |       |       |
| Income from receivables                                         |       |      |       |       |       |                    |       |       |       |
| Reversals of provisions/Transfer of expenses                    |       |      |       |       |       |                    |       |       |       |
| Total (1)                                                       |       | 0         |       | 1,711,989  |       |                    |       | 1,711,989  |       |
| OPERATING EXPENSES                                              |       |      |       |       |       |                    |       |       |       |
| Other outside purchases and expenses                            |       | -4,138    |       | -754,344   |       |                    |       | -758,482   |       |
| Taxes and similar payments                                      |       | -3,702    |       | 3,529      |       |                    |       | -173       |       |
| Wages and salaries                                              |       |      |       | -95,625    |       |                    |       | -95,625    |       |
| Social security and tax liabilities                             |       |      |       | -27,495    |       |                    |       | -27,495    |       |
| Depreciation/fixed assets                                       |       |      |       |       |       |                    |       |       |       |
| Depreciation deferred expenses                                  |       |      |       |       |       |                    |       |       |       |
| Allocations to provisions for risks and expenses                |       |      |       |       |       |                    |       |       |       |
| Misc. routine management expenses                               |       |      |       |       |       |                    |       |       |       |
| Total (2)                                                       |       | -7,840    |       | -873,935   |       |                    |       | -881,775   |       |
| ADJUSTSMENTS OF RECEIVABLES VALUES                              |       |      |       |       |       |                    |       |       |       |
| Unrecoverable receivables                                       |       |      |       | -4,182,289 |       |                    |       | -4,182,289 |       |
| Allocations to provisions                                       |       |      |       | -139,127   |       |                    |       | -139,127   |       |
| Reversals of provisions                                         |       |      |       | 6,155,839  |       |                    |       | 6,155,839  |       |
| Collection of written-down debt                                 |       |      |       | 107,167    |       |                    |       | 107,167    |       |
| Net capital loss disposal of real property excluding  operation |       |      |       |       |       |                    |       |       |       |
| Total (3)                                                       |       | 0         |       | 1,941,591  |       |                    |       | 1,941,591  |       |
|                                                            |       |      |       |       |       |                    |       |       |       |
| FINANCIAL INCOME                                                |       | 1,000,000 |       | 817,218    |       | -817,218                |       | 1,000,000  |       |
|                                                            |       |      |       |       |       |                    |       |       |       |
| FINANCIAL EXPENSES                                              |       | -817,218  |       | -241,748   |       | 817,218                 |       | -241,748   |       |
|                                                            |       |      |       |       |       |                    |       |       |       |
| FINANCIAL PROFIT/LOSS                                           |       | 174,942   |       | 3,355,116  |       |                    |       | 3,530,058  |       |
|                                                            |       |      |       |       |       |                    |       |       |       |
| NET EARNINGS BEFORE TAXES                                       |       |      |       |       |       |                    |       |       |       |
|                                                            |       |      |       |       |       |                    |       |       |       |
| NON-RECURRING INCOME                                            |       |      |       |       |       |                    |       |       |       |
| on management operations                                        |       |      |       |       |       |                    |       |       |       |
| Income from disposals of fixed assets                           |       |      |       |       |       |                    |       |       |       |
| Reversal of provisions for fixed assets                         |       |      |       |       |       |                    |       |       |       |
| Reversal of provisions for risks                                |       |      |       |       |       |                    |       |       |       |
| NON-RECURRING EXPENSES                                          |       |      |       |       |       |                    |       |       |       |
| Provisions for expenses                                         |       |      |       |       |       |                    |       |       |       |
| Net book value of assets disposed of                            |       |      |       |       |       |                    |       |       |       |
| On capital operations                                           |       |      |       |       |       |                    |       |       |       |
| On management operations                                        |       |      |       |       |       |                    |       |       |       |
|                                                            |       |      |       |       |       |                    |       |       |       |
| NON-RECURRING PROFIT/LOSS                                       |       | 0         |       | 0          |       |                    |       | 0          |       |
|                                                            |       |      |       |       |       |                    |       |       |       |
| DEPRECIATION OF GOODWILL ON ACQUISITION                         |       | 0         |       | 0          |       |                    |       | 0          |       |
|                                                            |       |      |       |       |       |                    |       |       |       |
| TAX ON PROFITS                                                  |       | -859,017  |       | 0          |       |                    |       | -859,017   |       |
|                                                            |       |      |       |       |       |                    |       |       |       |
| NET PROFIT/LOSS FOR THE ENTIRE GROUP                            |       | -884,875  |       | 3,355,116  |       |                    |       | 2,670,241  |       |

 

10

----

 

PRL DEVELOPPEMENT

 

CONSOLIDATEDANNUAL FINANCIAL STATEMENTS

 

AS OF DECEMBER 31,2005

 

 

A businesscorporation [société anonyme]

with capital ofEUR 693,000

CorporateHeadquarters:  96-98 avenue RaymondPoincaré

75016 PARIS

 

----

 

PRL DEVELOPPEMENT

 

CONTENTS

 
| ·  Balance sheet as of December 31, 2005                           | p. 1 and 2        |
|------------------------------------------------------------------------------|-------------------|
|                                                                         |              |
| · Income  statement from January 1, 2005 to December 31, 2005 | p. 3              |
|                                                                         |              |
| · Notes                                                                 | p. 4 & 5 |
|                                                                         |              |
| ·  Itemized balance sheet accounts                                      | p. 6 to 9         |
|                                                                         |              |
| ·  Itemized income statement                                            | p. 10             |

 

----

 

PRL GROUP

 

**Balance Sheet – Assets**

 
| ** **                                    | ** ** | **As of Length** | ** ** | **12/31/05**           | ** ** | **12/31/04**       | ** ** |
|-----------------------------------------------|------------|----------------------------|------------|------------------------|------------|--------------------|------------|
| ** **                                    | ** ** | ** **                 | ** ** | **Deprec. &** | ** ** | **12 months** | ** ** | **12 months** | ** ** |
| ** **                                    | ** ** | **Gross**                  | ** ** | **Prov.**              | ** ** | **Net**            | ** ** | **Net** | ** ** |
| Capital, subscribed, not called               |       |                       |       |                   |       |               |       |   |   |   |
| **FIXED ASSETS**                              | ** ** |                       |       |                   |       |               |       |   |   |   |
| **Intangible assets**                         | ** ** |                       |       |                   |       |               |       |   |   |   |
| Setup costs                                   |       |                       |       |                   |       |               |       |   |   |   |
| Research and Development costs                |       |                       |       |                   |       |               |       |   |   |   |
| Grants, patents and similar rights            |       |                       | 112,813    |                   | 112,813    |               |       |   |   |   |
| Goodwill                                      |       |                       |       |                   |       |               |       |   |   |   |
| Other intangible assets                       |       |                       |       |                   |       |               |       |   |   |   |
| Advances and installments                     |       |                       |       |                   |       |               |       |   |   |   |
| **Tangible assets**                           | ** ** |                       |       |                   |       |               |       |   |   |   |
| Property                                      |       |                       |       |                   |       |               |       |   |   |   |
| Buildings                                     |       |                       |       |                   |       |               |       |   |   |   |
| Plant and equipment                           |       |                       |       |                   |       |               |       |   |   |   |
| Other tangible assets                         |       |                       | 579,350    |                   | 579,350    |               |       |   |   |   |
| Construction work in progress                 |       |                       |       |                   |       |               |       |   |   |   |
| Advances and installments                     |       |                       |       |                   |       |               |       |   |   |   |
| **Long-term investments**                     | ** ** |                       |       |                   |       |               |       |   |   |   |
| Equity interests                              |       |                       | 11,750,00  |                   |       |               | 11,750,000 |   |   |   |
| Attached receivables                          |       |                       |       |                   |       |               |       |   |   |   |
| Other fixed investments                       |       |                       |       |                   |       |               |       |   |   |   |
| Loans granted                                 |       |                       |       |                   |       |               |       |   |   |   |
| Other long-term investments                   |       |                       |       |                   |       |               |       |   |   |   |
| **TOTAL**                                     | (I)        |                       | 12,442,163 |                   | 692,163    |               | 11,750,000 |   |   |   |
| **CURRENT ASSETS**                            | ** ** |                       |       |                   |       |               |       |   |   |   |
| Inventories and production in progress        |       |                       |       |                   |       |               |       |   |   |   |
| Goodwill, excluding operations                |       |                       | 12,196     |                   | 12,196     |               |       |   |   |   |
| Outstanding credit                            |       |                       | 64,433,485 |                   | 59,602,605 |               | 4,830,881  |   | 6,257,903 |   |
|                                          |       |                       |       |                   |       |               |       |   |   |   |
| Advances and installments paid on orders      |       |                       |       |                   |       |               |       |   |   |   |
| Operating receivables                         |       |                       |       |                   |       |               |       |   |   |   |
| Accounts receivable                           |       |                       |       |                   |       |               |       |   | 5,388 |   |
| Other receivables                             |       |                       | 143,286    |                   |       |               | 143,286    |   | 28,958 |   |
| Capital subscribed & called, not paid     |       |                       |       |                   |       |               |       |   |   |   |
| Investment securities including own shares    |       |                       |       |                   |       |               |       |   |   |   |
| Cash and cash equivalents                     |       |                       | 103,027    |                   |       |               | 103,027    |   |   |   |
| **ACCRUALS ASSET ACCOUNT**                    | ** ** |                       |       |                   |       |               |       |   |   |   |
| Prepaid expenses                              |       |                       | 3,587      |                   |       |               | 3,587      |   |   |   |
| **TOTAL**                                     | (II)       |                       | 64,595,581 |                   | 59,614,801 |               | 5,080,780  |   | 7,520,180 |   |
| Deferred expenses                             | (III)      |                       |       |                   |       |               |       |   |   |   |
| Bond redemption premiums                      | (IV)       |                       |       |                   |       |               |       |   |   |   |
| Currency translation adjustment – assets | (V)        |                       |       |                   |       |               |       |   |   |   |
|                                          |       |                       |       |                   |       |               |       |   |   |   |
| **GRAND TOTAL**                               | **(I-V)**  |                       | 77,137,744 |                   | 60,306,964 |               | 16,830,780 |   | 7,520,180 |   |

 

 

1

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PRL GROUP

 

**Balance Sheet – Liabilities**

 
| ** **                                         | **As of** |   | **12/31/05**       |   | **12/31/04**       |   |
|----------------------------------------------------|----------------|--------|--------------------|--------|--------------------|--------|
| ** **                                         | **Length**     |   | **12 months** |   | **12 months** |   |
| **EQUITY CAPITAL**                                 | ** **     |   |               |   |               |   |
| Capital (Including paid: 693,000)                  |           |   | 693,000            |   | 693,000            |   |
| Issue, merger, contribution premiums               |           |   |               |   |               |   |
| Revaluation reserve                                |           |   |               |   |               |   |
| Reserves                                           |           |   |               |   |               |   |
| Legal reserve                                      |           |   |               |   |               |   |
| Statutory or contractual reserves                  |           |   |               |   |               |   |
| Regulated reserves                                 |           |   |               |   |               |   |
| Consolidated reserves                              |           |   | 4,929,623          |   | 2,298,947          |   |
| Carry forward                                      |           |   |               |   |               |   |
| **PROFIT FOR THE FISCAL YEAR**                     | ** **     |   | 2,277,782          |   | 2,630,676          |   |
| Investment subsidies                               |           |   |               |   |               |   |
| Regulated provisions                               |           |   |               |   |               |   |
|                                               |           |   |               |   |               |   |
| **TOTAL**                                          | (I)            |   | 7,900,405          |   | 5,622,623          |   |
|                                               |           |   |               |   |               |   |
| **OTHER EQUITY CAPITAL**                           |           |   |               |   |               |   |
| Income from issues of participating securities     |           |   |               |   |               |   |
| Conditional advances                               |           |   |               |   |               |   |
|                                               |           |   |               |   |               |   |
| **TOTAL**                                          | (II)           |   |               |   |               |   |
|                                               |           |   |               |   |               |   |
| **PROVISIONS FOR RISKS AND EXPENSES**              |           |   |               |   |               |   |
| Provisions for risks                               |           |   | 1,219,615          |   | 946,276            |   |
| Provisions for expenses                            |           |   |               |   |               |   |
|                                               |           |   |               |   |               |   |
| TOTAL                                              | (III)          |   | 1,219,615          |   | 946,276            |   |
|                                               |           |   |               |   |               |   |
| **LIABILITIES**                                    |           |   |               |   |               |   |
| Convertible bond loans                             |           |   |               |   |               |   |
| Other bond loans                                   |           |   |               |   |               |   |
| Borrowing and debts with credit institutions       |           |   | 7,361,042          |   | 326,206            |   |
| Misc. borrowing and financial debts                |           |   |               |   |               |   |
| Advances and installments on orders in progress    |           |   |               |   |               |   |
| Accounts payable                                   |           |   | 226,312            |   | 44,386             |   |
| Tax and social security liabilities                |           |   | 18,305             |   | 518,930            |   |
| Liabilities on fixed assets and related accounts   |           |   |               |   |               |   |
| Other liabilities                                  |           |   | 105,102            |   | 61,759             |   |
|                                               |           |   |               |   |               |   |
| **ACCRUALS LIABILITY ACCOUNT**                     |           |   |               |   |               |   |
| Deferred income                                    |           |   |               |   |               |   |
| **TOTAL**                                          | (IV)           |   | 7,710,761          |   | 951,281            |   |
| Currency translation adjustment – Liabilities | (V)            |   |               |   |               |   |
|                                               |           |   |               |   |               |   |
| **GRAND TOTAL**                                    | **(I-V)**      |   | 16,830,780         |   | 7,520,180          |   |

 

 

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PRL DEVELOPPEMENT

ITEMIZED CONSOLIDATED INCOME STATEMENT

 
| ** **                                                      | ** ** | **Dec. 31, 2005** | ** ** | **Dec. 31, 2004** | ** ** |
|-----------------------------------------------------------------|------------|-----------------------------|------------|-----------------------------|------------|
| OPERATING INCOME                                                |       |                        |       |                        |       |
| Real property sales                                             |       |                        |       | 900,000                     |       |
| VAT on margin                                                   |       |                        |       | -42,359                     |       |
| Services provided                                               |       |                        |       | 42,541                      |       |
| Financial income – banking                                 |       | 1,646,299                   |       | 1,648,561                   |       |
| Financial expenses – banking                               |       | -50,926                     |       | -22,496                     |       |
| Other income                                                    |       |                        |       | 2145                        |       |
| Share of joint operations                                       |       |                        |       |                        |       |
| Income from receivables                                         |       |                        |       |                        |       |
| Reversals of provisions/Transfer of expenses                    |       |                        |       |                        |       |
| Total (1)                                                       |       | 1,595,372                   |       | 2,528,392                   |       |
| OPERATING EXPENSES                                              |       |                        |       |                        |       |
| Purchase of real property                                       |       |                        |       |                        |       |
| Inventory changes                                               |       |                        |       | -641,519                    |       |
| Other outside purchases and  expenses                           |       | -1,227,340                  |       | -1,375,840                  |       |
| Taxes and similar payments                                      |       | 5,294                       |       | -25,809                     |       |
| Wages and salaries                                              |       | -84,033                     |       | -85,688                     |       |
| Payroll taxes                                                   |       | -35,978                     |       | -21,473                     |       |
| Depreciation/fixed assets                                       |       |                        |       |                        |       |
| Depreciation deferred expenses                                  |       |                        |       |                        |       |
| Contributions to provisions for risks and expenses              |       |                        |       |                        |       |
| Misc. routine management expenses/unrecoverable  receivables    |       |                        |       | -1                          |       |
| Total (2)                                                       |       | -1,342,058                  |       | -2,130,331                  |       |
| ADJUSTMENT OF RECEIVABLES VALUE                                 |       |                        |       |                        |       |
| Unrecoverable receivables                                       |       | -8,210,622                  |       | -7,748,435                  |       |
| Allocations to provisions                                       |       | -568,362                    |       | -323,465                    |       |
| Reversals of provisions                                         |       | 10,834,720                  |       | 11,326,890                  |       |
| Collection of written-down debt                                 |       | 161,656                     |       | 350,938                     |       |
| Net capital loss disposal of real property excluding  operation |       |                        |       | -28,600                     |       |
| Total (3)                                                       |       | 2,217,372                   |       | 3,577,328                   |       |
|                                                            |       |                        |       |                        |       |
| FINANCIAL INCOME                                                |       | 750,000                     |       | 3,599                       |       |
|                                                            |       |                        |       |                        |       |
| FINANCIAL EXPENSES                                              |       | -142,583                    |       | -77,246                     |       |
|                                                            |       |                        |       |                        |       |
| FINANCIAL PROFIT/LOSS                                           |       | 607,417                     |       | -73,647                     |       |
|                                                            |       |                        |       |                        |       |
| NON-RECURRING INCOME                                            |       | 3,078,104                   |       | 3,901,741                   |       |
| on management operations                                        |       |                        |       | 2,612                       |       |
| Income from disposals of assets                                 |       |                        |       |                        |       |
| Reversal of provisions for securities                           |       |                        |       |                        |       |
| Reversal of provisions for risks                                |       |                        |       |                        |       |
|                                                            |       |                        |       |                        |       |
| NON-RECURRING EXPENSES                                          |       |                        |       |                        |       |
| Provisions for risk / non-recurring depreciation                |       |                        |       |                        |       |
| Net book value of assets disposed of                            |       |                        |       |                        |       |
| On capital operations                                           |       |                        |       |                        |       |
| On management operations                                        |       |                        |       |                        |       |
| Non-recurring depreciation of fixed assets                      |       |                        |       |                        |       |
|                                                            |       |                        |       |                        |       |
| NON-RECURRING PROFIT/LOSS                                       |       | 0                           |       | 2,612                       |       |
|                                                            |       |                        |       |                        |       |
| DEPRECIATION OF GOODWILL ON ACQUISITION                         |       | 0                           |       | -56,407                     |       |
|                                                            |       |                        |       |                        |       |
| TAX ON PROFITS                                                  |       | -800,322                    |       | -1,217,270                  |       |
|                                                            |       |                        |       |                        |       |
| NET PROFIT/LOSS FOR THE ENTIRE GROUP                            |       | 2,277,782                   |       | 2,630,676                   |       |

 

3

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PRL DEVELOPPEMENT

 

NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS

 

FOR THE FISCALYEAR ENDED ON DECEMBER 31, 2005

 

Notes to theconsolidated balance sheet, before allocation of the fiscal year ended on December 31,2006, totaling EUR 16,830,780 and to the income statement for the fiscal yearshowing a profit (Group share) of EUR 2,277,782.

 

1.             CONSOLIDATATION PRINCIPLES ANDMETHODS:

 

1.1.          General principles:

 

The consolidatedfinancial statements for the PRL DEVELOPPEMENT Group were prepared inaccordance with the provisions of Rule CRC 99.02 on consolidated financialstatements.

 

1.1.1.  Information concerning the scope ofconsolidation

 

a)  Consolidated companies:

 

The scope ofconsolidation for fiscal year 2004 is as follows:

 

·                  UBN

96-98 avenue Raymond Poincaré – 75016 PARIS

SIRET No.:  542 037 114 00064

 

b)  Percent control and consolidation method

 

·                  Percentage ofcontrol:

 

UBN                                               100%

 

                ·  Consolidationmethod:    full

 

1.1.2.  Accounting principles:

 

a)   Full consolidation method:

 

Elimination of the financial statements and reciprocal flows in theitems of the balance sheet and the income statement.

 

c)  Handling of goodwill on acquisition:

 

Positive goodwill on acquisition recorded at the time of acquisition ofthe UBN shares, i.e., EUR 112,813 accounted for as intangible assets, wasdepreciated over two fiscal years.  Thisgoodwill was fully depreciated on December 31, 2004.

 

4

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PRL DEVELOPPEMENT

 

d)  Other methods

 

The other accounting methods are those used to close prepare thefinancial statements for the companies included in the scope of consolidation.

 

5

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PRL GROUP

 

**ItemizedBalance Sheet – Assets**

** **
| **Closed on**                          | ** ** | **12/31/05**       | ** ** | **12/31/04**       | ** ** |
|---------------------------------------------|------------|--------------------|------------|--------------------|------------|
| **Length**                                  | ** ** | **12 months** | ** ** | **12 months** | ** ** |
|                                        |       |               |       |               |       |
| FIXED ASSETS                                |       |               |       |               |       |
|                                        |       |               |       |               |       |
| Grants, patents, similar rights             |       |               |       |               |       |
| Goodwill on acquisition ubn                 |       | 112,813.00         |       | 112,813.06         |       |
| Depreciation of goodwill on acquisition ubn |       | -112,813.00        |       | -112,813.06        |       |
|                                        |       |               |       |               |       |
| Other tangible assets                       |       |               |       |               |       |
| Other tangible assets                       |       | 579,350.21         |       | 579,350.21         |       |
| Depreciation of other tangible assets       |       | -579,350.21        |       | -579,350.21        |       |
|                                        |       |               |       |               |       |
| Total                                       |       |               |       |               |       |
|                                        |       |               |       |               |       |
| Long-term investments                       |       |               |       |               |       |
| Equity interests                            |       |               |       |               |       |
| Mcs shares                                  |       | 11,750,000.00      |       |               |       |
|                                        |       | 11,750,000.00      |       |               |       |
| Total                                       |       |               |       |               |       |
|                                        |       |               |       |               |       |
| TOTAL I                                     |       | 11,750,000.00      |       |               |       |
|                                        |       |               |       |               |       |
| CURRENT ASSETS                              |       |               |       |               |       |
|                                        |       |               |       |               |       |
| Inventories and work in progress            |       |               |       |               |       |
| Raw materials and other supplies            |       |               |       |               |       |
| Goodwill excluding ops. ubn                 |       | 12,195.92          |       | 12,195.92          |       |
| Prov. for impairment goodwill ubn           |       | -12,195.92         |       | -12,195.92         |       |
|                                        |       |               |       |               |       |
| Goods in production                         |       |               |       |               |       |
| Loans                                       |       | 1,650,223.47       |       | 2,667,635.83       |       |
| Doubtful loans                              |       | 62,779,510.98      |       | 73,726,203.36      |       |
| Interest accrued on loans                   |       | 3,751.00           |       | 6,346.00           |       |
| Prov. for loan impairment                   |       | -59,602,604.90     |       | -70,142,281.74     |       |
|                                        |       |               |       |               |       |
| Total                                       |       | 4,830,880.55       |       | 6,257,903.45       |       |
|                                        |       |               |       |               |       |
| Account Receivables                         |       |               |       | 5,388.42           |       |
| Debtors receivables                         |       |               |       | 5,388.42           |       |
|                                        |       |               |       |               |       |
| Other receivables                           |       | 21.00              |       |               |       |
| Tax/social security debtors                 |       | 106,000.00         |       |               |       |
| Corporation tax                             |       | 37,264.63          |       | 28,957.62          |       |
| Other receivables                           |       |               |       |               |       |
|                                        |       |               |       |               |       |
| Total                                       |       | 143,285.63         |       | 28,957.62          |       |
| Other securities                            |       |               |       |               |       |
| Ubn money-market funds                      |       |               |       | 1,221,206,11       |       |
| Total                                       |       |               |       | 1,221,206.11       |       |
|                                        |       |               |       |               |       |
| Cash and cash equivalents                   |       |               |       |               |       |
| Cash and cash equivalents prl               |       | 336.37             |       | 1,911.12           |       |
| Cash and cash equivalents ubn               |       | 102,691.04         |       | 1,789.60           |       |
|                                        |       |               |       |               |       |
| Total                                       |       | 103,027.41         |       | 3,700.72           |       |
|                                        |       |               |       |               |       |
| PREPAID EXPENSES                            |       |               |       |               |       |
| Prepaid expenses                            |       | 3,586.86           |       | 3,023.44           |       |
| Total                                       |       | 3,586.86           |       | 3,023.44           |       |
|                                        |       |               |       |               |       |
| TOTAL II                                    |       | 5,080,780.45       |       | 7,520,179.76       |       |

 

6

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PRL GROUP

 

**ItemizedBalance Sheet – Assets**

** **
| **Closed on** | ** ** | **12/31/****06**   | ** ** | **12/31/****05**   | ** ** |
|--------------------|------------|--------------------|------------|--------------------|------------|
| **Length**         | ** ** | **12 months** | ** ** | **12 months** | ** ** |
| ** **         | ** ** | ** **         | ** ** | ** **         | ** ** |
| GRAND  TOTAL       | ** ** | 16,830,780.45      | ** ** | 7,520,179.76       | ** ** |

 

7

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PRL GROUP

**ItemizedBalance Sheet – Liabilities**

** **
| **Closed on**                        | ** ** | **12/31/05**       | ** ** | **12/31/04**       | ** ** |
|-------------------------------------------|------------|--------------------|------------|--------------------|------------|
| **Length**                                | ** ** | **12 months** | ** ** | **12 months** | ** ** |
|                                      |       |               |       |               |       |
| EQUITY CAPITAL                            |       |               |       |               |       |
|                                      |       |               |       |               |       |
| Capital                                   |       |               |       |               |       |
| Capital                                   |       | 693,000.00         |       | 693,000.00         |       |
| Total                                     |       | 693,000.00         |       | 693,000.00         |       |
|                                      |       |               |       |               |       |
| Other reserves                            |       |               |       |               |       |
| Consolidated reserves                     |       | 4,929,623.16       |       | 2,298,947.17       |       |
|                                      |       |               |       |               |       |
| Total                                     |       | 4,929,623.16       |       | 2,298,947.17       |       |
|                                      |       |               |       |               |       |
| PROFIT/LOSS FOR THE FISCAL YEAR           |       | 2,277,781.50       |       | 2,630,675.99       |       |
| Total                                     |       | 2,277,781.50       |       | 2,630,675.99       |       |
|                                      |       |               |       |               |       |
| TOTAL I                                   |       | 7,900,404.66       |       | 5,622,623.16       |       |
| PROVISIONS FOR RISKS AND EXPENSES         |       |               |       |               |       |
|                                      |       |               |       |               |       |
| Provisions for risks                      |       |               |       |               |       |
| Provisions for risks ubn                  |       | 1,219,614.65       |       | 946,276.03         |       |
| Total                                     |       | 1,219,614.65       |       | 946,276.03         |       |
|                                      |       |               |       |               |       |
| TOTAL III                                 |       | 1,219,614.65       |       | 946,276.03         |       |
| LIABILITIES                               |       |               |       |               |       |
|                                      |       |               |       |               |       |
| Borrowing, debts with credit institutions |       |               |       |               |       |
| Besv borrowing                            |       | 7,000,000.00       |       |               |       |
| Coparticipants ubn                        |       | 300,193.06         |       | 303,520.41         |       |
| Accrued interest besv borrowing           |       | 60,589.68          |       |               |       |
| Accrued interest prl                      |       | 259.22             |       | 170.00             |       |
| Ubn bank                                  |       |               |       | 22,515.65          |       |
| Total                                     |       | 7,361,041.96       |       | 326,206.66         |       |
|                                      |       |               |       |               |       |
| Accounts payable                          |       | 208,815.80         |       | 23,239.24          |       |
| Accounts payable                          |       | 208,815.80         |       | 23,239.24          |       |
| Total                                     |       |               |       |               |       |
|                                      |       |               |       |               |       |
| Suppliers: related accounts               |       |               |       |               |       |
| Supplier invoices not yet received        |       | 17,496.16          |       | 21,146.57          |       |
| Total                                     |       | 17,496.16          |       | 21,146.57          |       |
|                                      |       |               |       |               |       |
| Tax and social security liabilities       |       |               |       |               |       |
| Tax and social security liabilities       |       | 18,304.95          |       | 20,104.50          |       |
| Corporation tax                           |       |               |       | 498,825.00         |       |
| Total                                     |       | 18,304.95          |       | 518,929.50         |       |
|                                      |       |               |       |               |       |
| Other liabilities                         |       |               |       |               |       |
| Misc. creditors                           |       | 105,102.27         |       | 61,759.20          |       |
| Total                                     |       | 105,102.27         |       | 61,759.20          |       |
|                                      |       |               |       |               |       |
| TOTAL IV                                  |       | 7,710,761.14       |       | 951,280.57         |       |

 

8

----

 

PRL GROUP

 

**ItemizedBalance Sheet – Liabilities**

** **
| **Closed on** | ** ** | **12/31/05**       | ** ** | **12/31/04**       | ** ** |
|--------------------|------------|--------------------|------------|--------------------|------------|
| **Length**         | ** ** | **12 months** | ** ** | **12 months** | ** ** |
| ** **         | ** ** | ** **         | ** ** | ** **         | ** ** |
| GRAND  TOTAL       | ** ** | 16,830,780.45      | ** ** | 7,520,179.75       | ** ** |

 

9

----

 

PRL  DEVELOPPEMENT

ITEMIZED CONSOLIDATED INCOME STATEMENT   Dec. 31, 2005

 
| ** **                                                      | ** ** | **PRL**  | ** ** | **UBN**    | ** ** | **Elim.  recip.  ops.** | ** ** | **TOTALS** | ** ** |
|-----------------------------------------------------------------|------------|----------|------------|------------|------------|-------------------------|------------|------------|------------|
| OPERATING INCOME                                                |       |     |       |       |       |                    |       |       |       |
| Real property sales                                             |       |     |       |       |       |                    |       |       |       |
| VAT on margin                                                   |       |     |       |       |       |                    |       |       |       |
| Financial products – banking                               |       |     |       | 1,646,299  |       |                    |       | 1,646,299  |       |
| Financial expenses – banking                               |       |     |       | -50,926    |       |                    |       | -50,926    |       |
| Capitalized production costs                                    |       |     |       |       |       |                    |       |       |       |
| Other income                                                    |       |     |       |       |       |                    |       |       |       |
| Income from receivables                                         |       |     |       |       |       |                    |       |       |       |
| Reversals of provisions/Transfer of expenses                    |       |     |       |       |       |                    |       |       |       |
| Total (1)                                                       |       | 0        |       | 1,585,372  |       |                    |       | 1,585,372  |       |
| OPERATING EXPENSES                                              |       |     |       |       |       |                    |       |       |       |
| Purchase of real property                                       |       |     |       |       |       |                    |       |       |       |
| Inventory changes                                               |       |     |       |       |       |                    |       |       |       |
| Other outside purchases and expenses                            |       | -11,343  |       | -1,215,998 |       |                    |       | .1,227,340 |       |
| Taxes and similar payments                                      |       | -13,768  |       | 19,062     |       |                    |       | 5,294      |       |
| Wages and salaries                                              |       |     |       | -84,033    |       |                    |       | -84,033    |       |
| Social security and tax liabilities                             |       |     |       | -35,978    |       |                    |       | -35,978    |       |
| Depreciation/fixed assets                                       |       |     |       |       |       |                    |       |       |       |
| Depreciation deferred expenses                                  |       |     |       |       |       |                    |       |       |       |
| Allocations to provisions for risks and expenses                |       |     |       |       |       |                    |       |       |       |
| Misc. routine management expenses                               |       |     |       |       |       |                    |       |       |       |
| Total (2)                                                       |       | -25,111  |       | -1,315,947 |       |                    |       | -1,342,058 |       |
| ADJUSTMENTS OF RECEIVABLES VALUES                               |       |     |       |       |       |                    |       |       |       |
| Unrecoverable receivables                                       |       |     |       | -8,210,622 |       |                    |       | -8,210,622 |       |
| Allocations to provisions                                       |       |     |       | -568,382   |       |                    |       | -568,382   |       |
| Reversals of provisions                                         |       |     |       | 10,834,720 |       |                    |       | 10,834,720 |       |
| Collection of written-down debt                                 |       |     |       | 161,656    |       |                    |       | 161,656    |       |
| Net capital loss disposal of real property excluding  operation |       |     |       |       |       |                    |       |       |       |
| Total (3)                                                       |       | 0        |       | 2,217,372  |       |                    |       | 2,217,372  |       |
|                                                            |       |     |       |       |       |                    |       |       |       |
| FINANCIAL INCOME                                                |       | 750,000  |       | 364,269    |       | -364,269                |       | 750,000    |       |
|                                                            |       |     |       |       |       |                    |       |       |       |
| FINANCIAL EXPENSES                                              |       | -364,741 |       | -142,111   |       | 364,269                 |       | -142,583   |       |
|                                                            |       |     |       |       |       |                    |       |       |       |
| FINANCIAL PROFIT/LOSS                                           |       | 385,259  |       | 222,158    |       |                    |       | 607,417    |       |
|                                                            |       |     |       |       |       |                    |       |       |       |
| NET EARNINGS BEFORE TAXES                                       |       | 360,148  |       | 2,717,956  |       |                    |       | 3,078,104  |       |
|                                                            |       |     |       |       |       |                    |       |       |       |
| NON-RECURRING INCOME                                            |       |     |       |       |       |                    |       |       |       |
| on management operations                                        |       |     |       |       |       |                    |       |       |       |
| Income from disposals of fixed assets                           |       |     |       |       |       |                    |       |       |       |
| Reversal of provisions for fixed assets                         |       |     |       |       |       |                    |       |       |       |
| Reversal of provisions for risks                                |       |     |       |       |       |                    |       |       |       |
| NON-RECURRING EXPENSES                                          |       |     |       |       |       |                    |       |       |       |
| Provisions for expenses                                         |       |     |       |       |       |                    |       |       |       |
| Net book value of assets disposed of                            |       |     |       |       |       |                    |       |       |       |
| On capital operations                                           |       |     |       |       |       |                    |       |       |       |
| On management operations                                        |       |     |       |       |       |                    |       |       |       |
|                                                            |       |     |       |       |       |                    |       |       |       |
| NON-RECURRING PROFIT/LOSS                                       |       | 0        |       | 0          |       |                    |       | 0          |       |
|                                                            |       |     |       |       |       |                    |       |       |       |
| DEPRECIATION OF GOODWILL ON ACQUISITION                         |       | 0        |       | 0          |       |                    |       | 0          |       |
|                                                            |       |     |       |       |       |                    |       |       |       |
| TAX ON PROFITS                                                  |       | -800,322 |       | 0          |       |                    |       | -800,322   |       |
|                                                            |       |     |       |       |       |                    |       |       |       |
| NET PROFIT/LOSS FOR THE ENTIRE GROUP                            |       | -440,174 |       | 2.717,956  |       | 0                       |       | 2,277,782  |       |

 

10

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