FRANK KHOIE STATEMENT TO INVESTORS – MARCH 5 th , 2010

On April and May of 2006 Khoie Properties purchased six plots for 302 million dirhams on a flexible payment plan from RAKIA. At the time no one knew Marjan Island.

We spent enormous energy, creativity and hard work in promoting Marjan Island and Ras Al Khaimah world-wide and pushed through with design, promotion, marketing, sales, and the operations at La Hoya Bay.

In the space of one year, because of Khoie Team's hard work and professional operations, La Hoya Bay was known world-wide and generated over one billion dirhams in sales.

We kept making partial payments to RAKIA for land and kept asking for clarity on electricity and getting no answers.

We pressed forward with the pilings for the Residence and Business Village and at the same time pushed for a three year audit which was needed to get 950 million dirhams in construction financing, but lenders privately told me that due to the lack of electricity in RAK it would be hard to get a large loan.

As a backup, an “IPO Committee” was appointed and we retained Mr. Housam Hourani from Al Tamimi lawyers to lead the IPO committee with plans to float 30% of Khoie shares in NASDAQ Dubai in 2009 and raise one billion dirhams to cover the cost of construction for La Hoya Bay Residences and Business Village.

While all these activities were going on in November and December 2008, our land payment came due. We asked RAKIA for an extension on the grounds that they were in breach due to no electricity, but as you know, our AED 57 million guarantee check was illegally used to detain me. A guarantee check is a civil dispute and since it was handed over in Dubai, legally the entire matter should have been addressed in the civil courts of Dubai, not the criminal courts of Ras Al Khaimah.

In detention since January 2009, the Khoie Team and I have been doing all we can to reach an amicable settlement with RAKIA by getting a loan extension and me out of detention to kick start renewed construction. But after seeing how the guarantee check was misused and that in14 months RAKIA has done nothing to actually get the project moving, we knew we had to move ahead on our own.

Since we cannot wait any longer, and do not wish to keep you, the investors, in this uncertain situation any more, we have decided to move ahead with or without RAKIA and make every effort to complete the project as planned before, and continue fighting RAKIA on the civil and criminal matters if necessary.

To this end, the Khoie Board has selected a highly qualified and experienced team and appointed them to the “La Hoya Bay Committee” with a mandate to raise the necessary financing through debt and equity and kick start construction of La Hoya Bay Residence and Business Village within 90 days from today. Much work is done already.

The board has also instructed the committee to inform investors that anyone who wishes to receive a full refund of their deposit may fill out the appropriate form to receive their refund within this same 90-day period.

We know that this has been a difficult and stressful period for our investors for which I truly apologize and take full responsibility. Ultimately as the CEO of the company, I am responsible and therefore I will set the records straight by building and delivering La Hoya Bay to our valued clients and investors by no later than 2011.

For your information, we shall continue holding out our hand to RAKIA for a peaceful and amicable settlement of our differences with the view of serving all parties' interest and prosperity.

A new escrow account will be established and controlled by three signatories of a chartered surveyors, auditors and a committee member, with monthly reports posted on our official web site for maximum transparency to renew trust and rebuild confidence.

We thank you for your understanding, trust, patience and continued cooperation which means so much to all of us at Khoie.

Frank Khoie

CEO Khoie Properties