Stewardship report by the Board of Directors and the Condo Board

The Board of Directors of Isla de Oro has published, for anyone who is interested, a list of our beach club's most recent achievements.

In carrying out these activities, we have acted with fairness and transparency to improve the administration of the resort, obtaining many advances in areas such as labor relations, infrastructure upgrades and maintenance; legal issues, collections and arrears.

Dear owners and members: Working with diligence for the wellbeing of the community, we have put the needs of our owners first, and in all cases have we employed our best judgment and experience to make the most logical and well justified decisions. This is how we promise it will continue to be while we have the large and pleasant responsibility of representing all of you as your members of the Board of Directors.

Kindly,
The Members of the Board of Directors of Isla de Oro
April 2007

ACHIEVEMENTS IN LABOR RELATIONS AND BENEFITS FOR THE RESORT'S EMPLOYEES

Union Contract: All clauses of the Collective Contract with the Union have been fulfilled. We enjoy enviable peaceful labor relations, which is a pillar that allows us to work in an atmosphere of collaboration with our employees and workers. We solely have two pending smaller judgments related to our previous messengers. This matter is in the process of being solved, with fairness and justice, and in full accordance with the current Labor Laws of the country.

Christmases: In both years under our management, 2.005 as well as in the 2,006, on the occasion of Christmas we kept all of our promises to our workers. Numerous quality toys were distributed to the children of our employees and workers. Entertainers organized parties with the appearance of Santa Claus and traditional Christmas food.

New uniforms were issued to all employees.

The resort is 100% current with all obligations and delivery of Cesta Tickets (nutritional bonus payments).

A special Milk-bonus was issued to employees working with the swimming pool with garbage collection, as well as to those involved in painting.

Personnel changes: In search of the greater efficiency in the administration and the performance of our duties, it was decided to contract a new manager and a new secretary, in both cases adhering to a professional selection criterion, and a rigorous evaluation of prospective employees in the most objective manner. Some minimum wage workers left the employ of the resort. All outgoing staff received full benefits and severance pay in accordance with the legislation in force.

Collections and accounts receivables: We have managed to improve our collections capability. Now we have a single bill collector and messenger, before we had two, but the current employee surpasses the other two in experience, persistentance and enthusiasm.

Reduction of payroll: Before 30 November 2005, when we took over the reins as your current Board of Directors, payroll amounted to twenty-two million five hundred fifty eight thousand and four bolivars (Bs. 22.558.004) on average each month. After 30 November 2005, with a reduction and changes in the staff, payroll is now approximately 40% less. A similar achievement has never once before happened in the history of our beach club.

Salary increases: While decreasing the overall payroll burden, we increased the individual monthly take-home pay of all of our workers. In February of 2.006 we increased wages for the lowest paid staff from Bs. 405.750 to Bs. 465.750; and again in September of that same year we increased it from Bs. 465.750 to Bs. 512.325.

Advances on Social Benefit payments: We were able to cumply in full with all requests by all workers for an advance payment of their social benefit (social security) savings, and advances paid early came to more than 10 million bolivars.

Interest payments on Social Benefits: Between the months of June and August 2006, we deposited more than eight million bolivars corresponding to interests on social benefits in the individual social security savings accounts of our employees.

MONTHLY CONDO FEES

With regards to the monthly expenses billed to each owner in HOA and condo fees, including maintenance and reserves, they have increased a bit due to a number of issues:

the upgrade works of remodeling that are being carried out to upgrade the towers;
increase of employee transportation which the resort provides (from 1.400.000 to 1.800.000 bolivars, as requested by the owner of the bus);
an increase in the Cesta Ticket food bonus decreed by the government in 2006;
as well as the overall, significant salary increases of our workers.

Even so, the increase in the amounts of condominium fees has been only slight to moderate. On average, the typical monthly payment increase was equivalent to only 3%, and during some months, the fees were actually lower than in previous months.

In addition, we spoke to owners with payment problems and arranged for them to increase their payments. This diminish their debts to us and the amount of payments in arrears. Thanks to this advance, we have been able to undertake large infrastructure improvements to the resort while at the same time not increasing the monthly bills unjustly.

Español

Announcements