1. Asia Pacific Roars! The Latest Spa Research Data And Predictions Panel Leader: Ingo Schweder, Managing Director, Spatality Inc. Panelists: Jeff Matthews - Mandara Spa Joy Menzies - Chiva-Som Shirin Navab - Spatality Samir Patel - Taj Hotels & Resorts

2. ASIA SPA INDUSTRY MALAYSIA AND INDONESIA Jeff Matthews President and Chief Operating officer Julie Garrow of Intelligent Spas

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4. Number of spas Indonesia Bali 240 -spas Java 77 -spas Other locations -87 spas 52% in hotels -42% day spas Malaysia Kuala Lumpur -104 spas East Malaysia -32 spas Other locations -49 spas 40% in hotels -54% day spas

5. Spa Demographics of Guests Malaysia Russian 2% Singapore 4% Hong Kong 6% Malaysia 6% Mixed Asian 12% Australian 16% Japan 17% Middle East 18% Europe 19% Indonesia Middle East 2% Indonesia 3% Russian 4% Hong Kong- 7% Singapore 8 % Mixed Asian 15% Europe 16% Japan 20% Australia 23%

6. RETAIL SALES Retail sales in Asia is comparatively lower than in the west do to the main reason of language. With the staff’s weaker skills in English this makes it difficult to instill confidence on getting guests to spend money. Resort spas – 7-12% of sales City spas – 9-18% of sales

7. Indigenous TRADITIONS Indonesia Javanese Lulur Balinese Boreh Jamu Traditions Malaysia Tongkat Ali Traditional midwife care Malay, Chinese and Ayurvedic Treatments

8. S.W.O.T. Indonesia (S)-Rich Heritage (S)-Good Resources(staff/stuff) (W)-Overseas Recruitment (W)-Diluting the labor pool (O)-Education (O)-Destination Spa (T)-Overseas Recruitment (T)-Saturated Market Malaysia (S)-Public desire for spas (S)-Rich beauty culture (W)-Government perception (W)-Labor force (O)-Opportunity for growth (O)-Excellent pool of Managers (T)-Public Perception (T)- Work Visa’s

9. Various statistics Indonesia Malaysia Single Rm size 200 sf 160sf Double Rm size 600 sf 450 sf Avg. indoor space 8000 sf 4000 sf Retail space 500 sf 400 sf Avg.spa check $68 $71 Avg. retail Check $44 $34 Capture rates 8-15 % 6-15% # Staff per spa 17 14 Therapist salary $150 $400 Manager Salary $800 $1,200 Profits GOP 55-65% 45-55%