Future Plans

The integrated resort concept of Laguna Phuket has proved a winning
formula since the resort’s inception over two decades ago. The dynamic
development over the last 20 years has created the mature resort which
is evident today.

  Nevertheless there continues to be opportunity to improve
  profitability and expand the existing facilities, particularly in
  light of the ongoing high demand for Phuket in terms of both hotel and
  residential accommodation and a hotel supply which is not expanding
  very quickly.

Future Expansion of Hotels in Laguna Phuket 

  The ability within the resort to add rooms supply without additional
  expenditure on infrastructure is a feature of the projects at Laguna
  Phuket. At Banyan Tree Phuket a further 4 Double Pool Villas in the
  next phase will commence construction in the first half of 2008. In
  addition, 22 Two-Bedroom Pool Villas will also commence construction
  in the first quarter of 2008. All of the new villas are being sold to
  the public.

  At the Dusit Laguna Resort 28 pool villas will be built during 2007
  and 2008 to provide a high end product for this hotel. These villas
  will be sold to the public. In addition, a further expansion is
  planned for this resort which will comprise 82 hotel rooms and 26 pool
  villas. Construction is expected to commence in the last quarter of
  2008.

  The design of a 7^(th) resort in Laguna Phuket on the last remaining
  beach site is being finalised. This will be branded Angsana Phuket,
  and it will commence construction in mid 2008.

  Most of the hotel rooms in Laguna Phuket have been renovated in 2006
  and 2007. The renovation of the rooms at the Dusit Laguna Resort will
  be completed in 2009.

Future Expansion of Hotels outside Laguna Phuket 

  Further expansion of Banyan Tree Bangkok is currently underway by
  renovating existing office space into additional hotel suites and
  condominium and will be completed in 2008.

Property Sales

  An integrated residential community called Laguna Village commenced
  construction in the first half of 2006. Phase I of Laguna Village
  comprises 56 Laguna Residences, 62 Laguna Townhomes and 36 Villas (a
  new product) and based on the current pace of sales phase I is
  expected to be sold out by early 2008. Phase II comprises 20
  Residences and 40 Townhomes and was released at the end of 2007.

  In addition, the Company has further “resort property sales” projects
  released including the Pool Villas at the Dusit Laguna Resort. In
  Banyan Tree Phuket, phase II of the Double Pool Villas (4 villas) and
  phase III of the Two-Bedroom Pool Villas (22 villas) were released for
  sale in 2007 and will commence construction in early 2008. The Company
  will continue to identify further resort property sales projects given
  the popularity of this type of lifestyle product which also provides a
  good investment return.

  Laguna Holiday Club

  A number of additional locations within the region will be considered
  in 2008 as the Company believes that with the quality of management
  and staff now in place, the Company has the foundation to expand this
  operation internationally. A sales office in Hong Kong is under
  consideration and will be the start of the planned international
  expansion which is expected to develop into People’s Republic of China
  and Vietnam in the next 2 to 3 years.

Laguna Tours

  Laguna Tours, the centralised tour company is directed at capturing
  the commissions generated by the existing guests when they avail
  themselves of the many activities available on the island. This also
  provides us with the opportunity to exercise some quality control over
  the tours offered to the guests. Laguna Tours will establish its own
  operated tours which will commence in mid 2008, starting with speed
  boat tours and city tours.