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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.

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What is the Project?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

– PMG is a Costa Rican based management and development corporation founded by CEO Ron Fleming

The Pacific Teak Reforestation Project began in 1998 and is managed by the Pacific Management Group, Inc. (PMG)

– PMG has full and unencumbered authority to develop, market, and manage the all aspects of the Project and its assets …employees, equipment, land and trees



Project OverviewProject Overview

– 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

Project expansion achieved through sale of Teak Trees

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 Methodology – End “Cut and slash”

Project Methodology – End “Cut and slash”

PMG acquires previously “Cut and Slashed” cattle pastures in the pristine rainforests of beautiful Costa Rica



Project Methodology - Planting

Project Methodology - Planting

Choice Teak Seedlings are cultivated, selected and planted at the optimal planting time (spring-summer)



Project Methodology – Growth Cycle

Project Methodology – Growth Cycle

PMG’s expert team of Foresters ensures perfect care and maintenance over the 15 year growth cycle

After 4 Years

After 1 Year After 4 Years



Project Methodology - Management

Project Methodology - Management

PMG manages all aspects of Project through final harvest and ultimate sale of customer’s timber to Teak wholesalers



What you are buyingWhat 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:

– 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

(1) 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.



Tree PricingTree 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)

170203,7501,2005 Parcels

42,000

12,500

5,000

$2,500

Purchase Price

175240Full Parcel

60

21

10

No. of Trees

2081/4 Parcel

23821 Trees

$25010 Trees

Price per Tree.Purchase Size

36%

33%

17%

5%

-

Discount

$1,900 Down

$215 per month for

5 Years

Financing is available on the purchase of ¼ parcel or greater …no credit check required



Securing Your PurchaseSecuring Your Purchase

Purchases secured by “Timber Deed”

Back

GPS Coordinates

FrontDocumentation Includes:

– Number of trees purchased / guaranteed at final harvest

– Assignment to customer of complete and unencumbered ownership of trees purchased

– Location of trees (via GPS coordinates)



Valuing Your PurchaseValuing 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

• Therefore…the approximate harvest value of a full Teak Parcel is $228,000 at TODAY’S wholesale prices: ($1,060 x 215 ~ $228,000)

Notes(1) Source International Tropical Timber Organization (www.itto.or.jp)(2) Price refers to plantation sawn wood, and includes small sizes

ITTO (1) reported teak log prices as of October, 2005

MeasureMyanmar Veneer

2nd QualMyanmar Saw

Quality Gr IMyanmar Saw Quality Gr II

US Import

Average 2005 (2)

Euro per Hoppus Ton 3,866 1,914 1,545 2,207

US$ per Cubic Meter 2,642 1,308 1,056 1,508

US$ per Board Foot 6.23 3.09 2.49 3.56



Return Example:Full Parcel of New SeedlingsReturn Example:Full Parcel of New Seedlings

Asset Value / ReturnsAsset 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!

$228,000Current harvest / wholesale value of a full Parcel (240 trees)

(42,000)Purchase PriceGrowth appreciation at today’s prices (“Growth Value”) $186,000

443%Total ReturnMultiple of cost 5 X’s

$355,000

FUTURE harvest / wholesale value w/ conservative price increase (3.0%)

(42,000)Today’s Purchase Price

Growth appreciation $313,000

745%Total ReturnMultiple of cost 8 X’s

• 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



Teak Price TrendsTeak Price Trends

The wholesale price of Teak has increased an average of over 5.5% per year since 1972

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%

(1)Wholesale Teak PriceUS $ Per Cubic Meter

$0

$1,000

$2,000

1972 1982 1992 2002 2012

Natural Deforested Teak

Plantation Teak

FAO

ITTO

(2)

(3)



Teak Investment ReturnsTeak 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%

Notes: 1. Current teak timber price ($/M3) 1,060

2. Average annual timber price growth 3%

3. Processing and management fees 6%

Investment projection

Purchase Price

Value at maturity

Processing & Mgt fees

Total net profit

Net Profit

Duration (Years)

Comp'd Annual Returns

$42,000 $355,000 $21,300 $291,700 695% 15 14.8%



Teak vs. Conventional Investments

Teak vs. Conventional Investments

When you compare anticipated appreciation in value to conventional investment alternatives…Teak blows away the competition

Pacific Teak14.8%

Compounded annual return – Last 32 years

8,374%

Over 83 TimesPurchase Price

and if history repeats…

8 Times better than the US Stock Market

7.4%

8.0%

3.1%

5.0%

6.1%

8.8%

Total Return % after 32 yrs

1,628%

476%

1,255%

1,040%

4,000% 6,000% 8,000% 10,000%

U. K. Real Estate

Gold

U. S. T~Bills Bonds

Nikkei (Japan)

FTSE (U.K.)

U.S. Stock Market (DJ)

702%

270%

2,000%



Driving ForceDriving Force

How are these returns possible?

Ever-increasing demand

Limited supply



Teak SupplyTeak Supply

Teak supplies are limited by three factors:

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

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

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



Teak DemandTeak 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 and new applications for Teak are ever increasing, supplies are not…

This dynamic assures ever-increasing prices for Teakwood!



Risk AssessmentRisk 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



Agricultural RisksAgricultural 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



Physical / Environmental Risks

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

PMG guarantees your trees…should any shortfall occur for any reason, PMG will take trees from its own, private stock to complete your order

– Unforeseen destruction / catastrophe??



Governmental RiskGovernmental Risk

• Stable government… a democratic republic for nearly 200 years

• 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

• Progressive business environment… tax incentives and ownership laws/rights encourage plantation development…economy relies heavily on foreign investment, trade and tourism

Why is Costa Rica ideal?

• 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.



Management RiskManagement Risk

• 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

Highly professional team assembled to manage your asset’s growth:

• 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 Team2Market (www.team2market.com) to assist and support all business strategy and development aspects of Pacific Teak




• Bios of Board members available upon request

PMG Management Board

Ron FlemingChairman of the Board

Lewis Waugh Non Executive Director

Corporate finance planning

Fernando Gutierrez, Esq.PMG President and CEO

John Schau, Esq. General Counsel, Attorney at Law

Todd DockumNon Executive Director

Corporate audit / asset preservation

Giuseppe UslenghiNon Executive Director

Strategy / Business development




– 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.

What if PMG/management fails in its mission?

– 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



Time…Market RiskTime…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

But, the best hedge against time/market risk… Price leverage!

– 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



Time / Market RiskTime / Market Risk

• Your purchase price provides leverage of 5 to 1 (current harvest value vs. cost) providing outstanding risk protection

w/ normal inflation

$228,000

w/ Zero inflation

ZERO! $228,000

($114,000)$114,000

171%2 X’s

…Our program would still deliver a substantial return even with a 50% market drop

• 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

$228,000

3.0%$355,000

– Less: 50% drop in market valueHarvest proceedsTotal return (vs. $42,000 cost)Multiple of cost

($177,500)$177,500

323%4 X’s

How price leverage hedges against time/market risk:



Getting StartedGetting 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



Summary SlideSummary Slide

Table of Contents:

Click on any link to return to a slide

• 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

Documents

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