Dear Ladies and Gentlemen,

We would like to present information on Hotel MIR, Kharkiv, Ukraine.

Kharkiv is a large industrial, scientific and cultural center in Ukraine. It is one of tourist centers of the former USSR. There are such industrial giants as Kharkov Aircraft Plant, Turboatom plant, Plant named after Malishev, famous for its tanks, Tractor Factory, etc. which made up to 6 per cent of the industrial production of the USSR.

The hotel complex was built in 1978. It is situated in one of the best districts of Kharkiv on one of the most beautiful arterial roads of the city, Lenin Avenue, 3 kilometers from the center and central railroad station, 11 kilometers from the airport.

Since its opening in 1994 the hotel was controlled by the central bodies of tourism of the USSR and Ukraine. The main line of activity was international tourism. In April 1994 the hotel was registered as leased property enterprise. In October 1994 the general meeting of shareholders signed a deed of foundation and Articles of Incorporation of Hotel MIR Close Company. By its resolution No 900 of October 22, 1997 the Executive Committee of the Kharkiv City Council the hotel was allotted 4577 hectares land. Hotel MIR also owns a site of 5 hectare situated on the shores of a large man-made lake 30 kilometers from the city boundaries. In the picturesque pinewoods, there is an 80-place auto camping, parking lot, bar, tennis court, beach area, and sports ground.

The hotel has 256 comfortable single, double rooms and suites.

The complex includes the Golden Lion nightclub, 2 barrooms, cafe, 2 saunas, and solarium, auto-salon, and 2 conference halls. Services include catering services, arrangement of presentations, exhibitions, and conferences.

The hotel's production area comprises a pasta manufacturing shop, confectionery, and sparkling water bottling plant. The complex has its own water supply, using 400 meters deep artesian well. Rooms are equipped with international long-distance telephone connection, satellite TV, alarm, Internet connection.

The complex is managed by the Board of Directors, which is headed by President, Mr. Yuri Belchikov. Registered capital is 1,110,070 Hrivnas. Number of shareholders is 997 with 2,220,140 shares. Share denomination is 2 Hrivnas. 25 per cent of the stock belong to the President, and 13 per cent belong to his assistant.

The President and Board of Directors are interested in investments for development and reconstruction of the complex. We propose two variants:

a) Leasing of rooms of one or several floors with any infrastructure which the investor will find necessary e.g. cafe 5 restaurant, conference hall, auto salon, floor space in the hotel lobby, etc.

b) Investments in the above-mentioned project, reconstruction and joint operation of the complex, including reconstruction of the existing tennis courts, sports grounds, beach, water rides with possibility of year-round operation, as well as arrangement of hunting, fishing and winter sports tours (skiing, skating, sledge riding).

If you find our proposal interesting the management of the Hotel MIR Co. is ready to provide all the facilities necessary for negotiations on the subject.

Sincerely yours,