Majestic Village No. 1 Fund

Fund Closed	31st May 2006
Redemption Date	31st Dec 2010 (revised)
Cost of "right to purchase" contracts	€13.2 million
Date of next set of audited accounts	30th June 2010

Links to CISX announcements:

Extension of redemption date
http://www.cisx.com/listedsecuritynewsdisplay.php?newsID=47168

Final Results 30th June 2009
http://www.cisx.com/listedsecuritynewsdisplay.php?newsID=44497

Interim Results 31st December 2009
http://www.cisx.com/listedsecuritynewsdisplay.php?newsID=47962

Net Asset Value
Net asset value (NAV) per share as at 31st December 2009 - €92.37

Further Information:

The Spanish property market has suffered severely during the worldwide recession. The movement in the Euro against Sterling has meant that the UK, which is one of the traditional markets for re-sales, has been severely restricted as our properties have effectively become 30% more expensive. Coupled with a glut of distressed property in the Malaga region this has made the sale of the Spanish property held extremely difficult.

In light of the above the Board have held a series of discussions over the last few months with the developer, their bankers and a market leading company involved in fractional ownership. The developers have agreed to accept prices that will cover the level of bank finance which stands at approximately 55% of the Fund’s original contract price and therefore allows the Fund market the properties at a 20% discount to their current value. In addition the banks have agreed mortgages which in conjunction with the available discounts will allow potential buyers 100% funding and this enhances the prospects of the Fund disposing of some of its assets.

The promoters have engaged the services of The Best Group and they are currently working on providing a fractional ownership solution but also have contacts with a consortium which is looking to buy entire sites in Spain.

The latest Fund update can be found under the Literature Library section.

* This is an indicative date, subject to various factors disclosed in this Supplemental Memorandum, in particular, the completion and re-sale of "right to purchase" contracts and developments.