The following presentation includes various statistics pertaining to

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The following presentation includes various statistics pertaining to inflation and selling price indices and

The following presentation includes various statistics pertaining to inflation and selling price indices and current market values. Please be advised that past inflation and selling price trends are no guarantee of future performance. Individuals should consult their own professional advisors to determine their financial needs. No information provided or opinion expressed in this presentation constitutes an offer to buy or sell any security. Use your mouse to click anywhere to advance to the next discussion point or slide CLICK TO ADVANCE END SHOW

What is the Project? A unique initiative designed to: – Save one of the

What is the Project? A unique initiative designed to: – Save one of the Earth's most precious natural habitats: the tropical rainforest …while – Providing individuals, businesses, and institutions the opportunity to build their financial futures The Pacific Teak Reforestation Project began in 1998 and is managed by the Pacific Management Group, Inc. (PMG) – PMG is a Costa Rican based management and development corporation founded by CEO Ron Fleming – PMG has full and unencumbered authority to develop, market, and manage the all aspects of the Project and its assets …employees, equipment, land trees ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Project Overview Project objectives – Reduce deforestation of tropical rainforests by developing Teak tree

Project Overview Project objectives – Reduce deforestation of tropical rainforests by developing Teak tree plantations to satisfy growing global market demand for teak wood – End destructive environmental impact of historical practices: • Reduce need for harsh, destructive stripping of indigenous trees • Establish Teak Tree plantations on land previously “cut and slashed” for cattle grazing to restore/contribute to the rich, lush tropical canopy • Reduce or reverse the environmental impact of the callous destruction of tropical rainforests Project expansion achieved through sale of Teak Trees – Customers purchase a guaranteed number of Teak trees at final harvest – PMG plants, maintains, and harvests trees on customers’ behalf – Customer receives harvest proceeds…project expansion achieved… everyone benefits, including the environment ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Project Methodology – End “Cut and slash” PMG acquires previously “Cut and Slashed” cattle

Project Methodology – End “Cut and slash” PMG acquires previously “Cut and Slashed” cattle pastures in the pristine rainforests of beautiful Costa Rica ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Project Methodology - Planting Choice Teak Seedlings are cultivated, selected and planted at the

Project Methodology - Planting Choice Teak Seedlings are cultivated, selected and planted at the optimal planting time (spring-summer) ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Project Methodology – Growth Cycle PMG’s expert team of Foresters ensures perfect care and

Project Methodology – Growth Cycle PMG’s expert team of Foresters ensures perfect care and maintenance over the 15 year growth cycle After 1 Year After 4 Years ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Project Methodology - Management PMG manages all aspects of Project through final harvest and

Project Methodology - Management PMG manages all aspects of Project through final harvest and ultimate sale of customer’s timber to Teak wholesalers ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

What you are buying Trees guaranteed to grow…with complete life cycle management • Customers

What you are buying Trees guaranteed to grow…with complete life cycle management • Customers purchase “Parcels” of planted Teak trees with a guaranteed (1) yield/number of trees at final harvest • Typically, parcels of newly planted seedlings are made available…although older/mature trees are sometimes available for purchase • PMG provides customer’s with: • (1) – Complete planting, care and maintenance of trees purchased throughout the growth cycle (15 years for new seedlings) – Cut and prep services (conversion to saleable logs) at final harvest – Selling in wholesale Teak market …PMG will sell trees on customer’s behalf at best available wholesale prices (or deliver to the customer at customer’s request) The Purchase Price is the only out of pocket cost to customers… a 6% fee is also deducted from customer’s final timber sale proceeds to cover management and selling services provided by PMG over life of contract If for any reason the land set aside to grow the trees does not produce the contracted yield at final harvest, PMG will make up the difference from its private reserve of Teak trees. ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Tree Pricing Current cost of a full Parcel (240 trees at final harvest) is

Tree Pricing Current cost of a full Parcel (240 trees at final harvest) is $42, 000 …Smaller increments are available, down to ten (10) trees at final harvest ($2, 500) Purchase Size $1, 900 Down $215 per month for 5 Years 10 Trees 21 Trees 1/4 Parcel Full Parcel 5 Parcels No. of Trees 10 21 60 240 1, 200 Purchase Price $2, 500 5, 000 12, 500 42, 000 203, 750 Price per Tree. $250 238 208 175 170 Discount 5% 17% 33% 36% Financing is available on the purchase of ¼ parcel or greater …no credit check required ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Securing Your Purchases secured by “Timber Deed” Front Documentation Includes: – Number of trees

Securing Your Purchases secured by “Timber Deed” Front Documentation Includes: – Number of trees purchased / guaranteed at final harvest Back – Assignment to customer of complete and unencumbered ownership of trees purchased – Location of trees (via GPS coordinates) ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE GPS Coordinates END SHOW

Valuing Your Purchase Value per “Parcel” • One Parcel (240 trees) of Teak Trees

Valuing Your Purchase Value per “Parcel” • One Parcel (240 trees) of Teak Trees will yield approximately 215 Cubic Meters of commercial wood at final harvest • A conservative average plantation teak wholesale price estimate per cubic meter is (~424 board feet) is $1, 060. 00, or $2. 50 per board foot ITTO (1) reported teak log prices as of October, 2005 Notes (1) Source International Tropical Timber Organization (www. itto. or. jp) (2) Price refers to plantation sawn wood, and includes small sizes • Therefore…the approximate harvest value of a full Teak Parcel is $228, 000 at TODAY’S wholesale prices: ($1, 060 x 215 ~ $228, 000) ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Asset Value / Returns • • • When you buy one of our Teak

Asset Value / Returns • • • When you buy one of our Teak “Parcels”… you are actually paying only a fraction of the asset’s value at maturity based upon TODAY’s wholesale prices! This means the value of your initial tree purchase will increase 5 times faster than its cost simply by growing… we call this “Growth Value” When historical inflation trends are added to “Growth Value” … the return on your Teak purchase soars to over 700% - or 8 times over your purchase price ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST Return Example: Full Parcel of New Seedlings Current harvest / wholesale value of a full Parcel (240 trees) Purchase Price Growth appreciation at today’s prices (“Growth Value”) Total Return Multiple of cost FUTURE harvest / wholesale value w/ conservative price increase (3. 0%) Today’s Purchase Price Growth appreciation CLICK TO ADVANCE Total Return Multiple of cost $228, 000 (42, 000) $186, 000 443% 5 X’s $355, 000 (42, 000) $313, 000 745% 8 X’s END SHOW

Teak Price Trends The wholesale price of Teak has increased an average of over

Teak Price Trends The wholesale price of Teak has increased an average of over 5. 5% per year since 1972 (1) (2) Natural Deforested Teak ITTO FAO (3) Plantation Teak Chart Notes (1) Source International Tropical Timber Organization (www. itto. or. jp), FAO (www. fao. org), and PMG analysis (2) Drop in deforested teak price is related to political situation in Myanmar and international laws against deforestation (3) Plantation prices have increased steadily in the last five years and projected long term annual growth is 5. 5% to 7% ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Teak Investment Returns • If historical price trends continue…the value of your Pacific Teak

Teak Investment Returns • If historical price trends continue…the value of your Pacific Teak purchase will far exceed the appreciation of conventional investments • Assuming a conservative 3% annual teak timber price increase, the investment in one parcel of Pacific Teak is projected produce an average annual return of 14. 8% Investment projection Notes: 1. Current teak timber price ($/M 3) 1, 060 2. Average annual timber price growth 3% 3. Processing and management fees 6% ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Teak vs. Conventional Investments When you compare anticipated appreciation in value to conventional investment

Teak vs. Conventional Investments When you compare anticipated appreciation in value to conventional investment alternatives…Teak blows away the competition Compounded annual return – Last 32 years 14. 8% 8, 374% Pacific Teak 7. 4%U. S. Stock Market (DJ) 1, 040% 8. 0% FTSE (U. K. ) 1, 255% 3. 1% Nikkei (Japan) 270% 5. 0% U. S. T~Bills Bonds 476% 6. 1% 8. 8% Gold U. K. Real Estate BACK AHEAD FIRST LAST and if history repeats… Total Return % after 32 yrs 8 Times better than the US Stock Market 702% 1, 628% 2, 000% ------------ SLIDE NAVIGATION ------------ Over 83 Times Purchase Price 4, 000% 6, 000% CLICK TO ADVANCE 8, 000% 10, 000% END SHOW

Driving Force How are these returns possible? Limited supply Ever-increasing demand ------------ SLIDE NAVIGATION

Driving Force How are these returns possible? Limited supply Ever-increasing demand ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Teak Supply Teak supplies are limited by three factors: 1. Environmental requirements severely limit

Teak Supply Teak supplies are limited by three factors: 1. Environmental requirements severely limit suitable growing regions: • • • Teak only grows satisfactorily within 10 -15 degrees of the equator Growing area must be at the proper elevation with distinct wet and dry seasons Only equatorial regions of Central / South America and Southeast Asia / Africa possess the desired temperature, humidity and rainfall characteristics needed 2. Deforestation…has occurred in many regions suitable for growing… “While forest area in developed countries has stabilized and is slightly increasing overall, deforestation has continued in developing countries. ” -- 2001 State of the World’s Forest report published by the United Nations 3. Pressure from the United Nations and key governments forcing new legislation to prohibit the cutting of indigenous Teak trees …plantation Teak is the wave of the future, but supply will be limited ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Teak Demand • Demand for Teak has never been higher due to its strength,

Teak Demand • Demand for Teak has never been higher due to its strength, hardness and durability • Teak wood’s high oil content provides natural resistance to insects, fungus, fire, water, and acids • Teak is an essential timber in ship/yacht building, joinery, flooring, carving, cabinetwork, paneling, turnery, tanks/vats and fixtures • Demand new applications for Teak are ever increasing, supplies are not… This dynamic assures ever-increasing prices for Teakwood! ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Risk Assessment • With such high returns…what are the risks? • Possible risks: –

Risk Assessment • With such high returns…what are the risks? • Possible risks: – Agricultural – Physical and environmental – Governmental…Costa Rica? ? – Management – Time…what of future markets? • At Pacific Teak we do our best to mitigate risks to ensure your asset is safe and secure ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Agricultural Risks – Insects…no indigenous harmful pests. Only exposure is to roots within first

Agricultural Risks – Insects…no indigenous harmful pests. Only exposure is to roots within first year or so of planting. Problem easily avoided by proper preparation / insecticides – Fungus/biological… no known cases in Costa Rica of mass fungus/biological destruction. If present fixed simply by spraying – Growth… inferior growth can result from neglect, or inferior soil/climate conditions. At Pacific Teak we: • • Select farms with only grade 1 soil conditions situated in optimal growing regions Our expert team of on-site foresters oversee all phases of the growth and management process including annual maintenance and fertilization High motivation for proper management… two thirds of all plantation trees belong to PMG ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Physical / Environmental Risks – Hurricane / Flood… hurricanes are extremely rare in the

Physical / Environmental Risks – Hurricane / Flood… hurricanes are extremely rare in the region… trees/farms receive sufficient rainfall nine months of the year… easy handled by topography and proper irrigation. . . – Fire…forest fires highly unlikely in the rain forest… trees high oil content make them impervious to fire…if set or accidental…. would only expedite growth/fertilization – Theft… logistically impossible • Workers live onsite and work the plantation daily • Foresters provide weekly/daily oversight and inspection • No hidden road access… mass / concealed theft not possible – Unforeseen destruction / catastrophe? ? PMG guarantees your trees…should any shortfall occur for any reason, PMG will take trees from its own, private stock to complete your order ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Governmental Risk Why is Costa Rica ideal? • Stable government… a democratic republic for

Governmental Risk Why is Costa Rica ideal? • Stable government… a democratic republic for nearly 200 years • Radical shift in historical governmental process unlikely… – Widespread land ownership and voter participation in general elections …viewed as one of brightest democratic success stories of the last century – Strategically important to the U. S. / regional stability, a member of the Central American Free Trade Agreement (CAFTA) with U. S. ) – No indigenous military… making change by coup unlikely. • Progressive business environment… tax incentives and ownership laws/rights encourage plantation development…economy relies heavily on foreign investment, trade and tourism • Costa Rica possess the optimum conditions for growing Teak “Although not indigenous to Costa Rica, this tiny country provides a uniquely perfect geographical, climatic, and geomorphologic condition for the production of high quality Teak, and with some of the fastest growth rates of Teak in the world being recorded in Costa Rica. ” - Teakwood Commercialization 1998 ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Management Risk Highly professional team assembled to manage your asset’s growth: • Ron Fleming,

Management Risk Highly professional team assembled to manage your asset’s growth: • Ron Fleming, PMG Founder, Chairman of the Board – Successful business owner, manager for over 20 years – Highly experienced in the international Import – Export business – Has been operating in Costa Rica for over ten years • Strong operations team – Chief Executive Officer, corporate law expert with over 30 years of experience in managing businesses in Costa Rica – Chief Operation Officer with over 15 years experience in managing agriculture projects in Costa Rica – Two full time foresters, highly educated and experienced in Teak – Three plantation site managers, and a team of 7 full time and over 50 seasonal plantation employees • Strategic Alliance with Team 2 Market (www. team 2 market. com) to assist and support all business strategy and development aspects of Pacific Teak ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Management Risk PMG Management Board Fernando Gutierrez, Esq. PMG President and CEO Todd Dockum

Management Risk PMG Management Board Fernando Gutierrez, Esq. PMG President and CEO Todd Dockum Non Executive Director Corporate audit / asset preservation • Ron Fleming Chairman of the Board Lewis Waugh Non Executive Director Corporate finance planning John Schau, Esq. General Counsel, Attorney at Law Giuseppe Uslenghi Non Executive Director Strategy / Business development Bios of Board members available upon request ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Management Risk What if PMG/management fails in its mission? – Life Cycle Protection Guarantee…

Management Risk What if PMG/management fails in its mission? – Life Cycle Protection Guarantee… For each parcel purchased, PMG will plant, transfer and hold in Trust for the life of your purchase agreement one additional parcel of Teak trees. These trees are automatically transferred to the buyer by the Trustee in the event PMG fails to perform any of its contractual obligations. – Pacific Management Trust • U. S. administered Trust • Trustee: John M. Schau, Esq. , is a licensed attorney in California, U. S. A. , and is conversant in Spanish. John has been instrumental in obtaining regulatory approvals for our operations in Costa Rica. • John physically verifies the GPS coordinates of every customer’s Timber Deed. He also verifies and holds Timber Deeds issued under PMG’s Life Cycle Protection Guarantee PMG is highly committed and motivated to perform … as PMG’s contractual obligations are met, Trees held in Trust revert back to PMG ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Time…Market Risk • The hardest risk to manage… unforeseen market changes. • Certain factors

Time…Market Risk • The hardest risk to manage… unforeseen market changes. • Certain factors mitigate this risk: – Because of its unique qualities, Teak has always been in high demand… now more than ever – Supply is becoming more limited • Worldwide legislative trend toward rainforest preservation and prohibiting cutting of indigenous Teak and other tropical trees • Recent push to establish plantations in indigenous regions of Southeast Asia and India will not enter the market for many years after Costa Rica’s established plantations But, the best hedge against time/market risk… Price leverage! ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Time / Market Risk How price leverage hedges against time/market risk: • Your purchase

Time / Market Risk How price leverage hedges against time/market risk: • Your purchase price provides leverage of 5 to 1 (current harvest value vs. cost) providing outstanding risk protection • For example…What would happen in the highly unlikely event that the future value of Teak (relative to other goods and services) declines by 50%? . . . – – Today’s wholesale yield value of one parcel Apply inflation rate (same as last 15 years) Future wholesale value Less: 50% drop in market value Harvest proceeds Total return (vs. $42, 000 cost) Multiple of cost w/ normal inflation $228, 000 3. 0% $355, 000 ($177, 500) $177, 500 323% 4 X’s w/ Zero inflation $228, 000 ZERO! $228, 000 ($114, 000) 171% 2 X’s …Our program would still deliver a substantial return even with a 50% market drop ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Getting Started • PMG has assembled a highest specialized team of experts and programs

Getting Started • PMG has assembled a highest specialized team of experts and programs to provide a highly unique opportunity • So if your financial goals include: – Highly lucrative, long-term investment programs – The security of fully guaranteed asset ownership AND… – The opportunity to help protect the world’s rainforests • Get involved with this exciting initiative. Contact Pacific Teak today…or visit our website at www. pacificteak. com ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST CLICK TO ADVANCE END SHOW

Summary Slide Table of Contents: Click on any link to return to a slide

Summary Slide Table of Contents: Click on any link to return to a slide 4 ------------ SLIDE NAVIGATION ------------ BACK AHEAD FIRST LAST • What is the Project? • Project Methodology • What you are buying • Tree Pricing • Securing Your Purchase • Valuing Your Purchase • Asset Value / Returns • Teak Price Trends • Teak Investment Returns • Teak vs. Conventional Investments • Driving Force • Teak Supply • Teak Demand • Risk Assessment • Management Risk • Time…Market Risk • Getting Started CLICK TO ADVANCE END SHOW