Centre for Environment and Development for the Arab Region and Europe

We have audited the accompanying statement of assets, liabilities and fund balances arising from cash transactions of the Centre for Environment & Development for the Arab Region & Europe (CEDARE) as at December 31, 2006 and the related statements of revenue and expenditure and changes in fund balance, for the year then ended. These financial statements are the responsibility of the Centre’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standers on Auditing and in the light of provisions of applicable Egyptian laws and regulations. Those standers require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An Audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall financial statements presentation. We believe that our audit provides reasonable basis for our opinion. The Centre's policy is to prepare the accompanying statements on the cash receipts and disbursements basis. According to this basis, revenues are recognized when received rather than earned, and expenses are recognized when paid rather than incurred. In our opinion,the accompanying statements present fairly in all material respects the assets, liabilities and fund balance arising from cash transactions of the Centre for Environment & development for the Arab Region & Europe (CEDARE) as at December 31, 2006 and its revenues, contributions collected and expenditures paid during the period then ended in accordance with cash receipts and disbursements basis as described in Note No.2. Pyramids Heights Office Park Km 22 Cairo/Alexandria Road P.O. Box 48 Al Ahram Giza - Cairo - Egypt Hazem Hassan Public Accountants & Consultants Telephone : (202) Telefax : (202) Postal Code : Al Ahram

3,626,675 1,527,419 2,992, , ,414687, ,5873,051, ,9011,049, ,100 2,689,081

PERSONNEL OVERHEAD SELF FINANCING OPERATING EXP. Surplus ($ 10,178) $ 625,865 $ 100,000 $ 745,687 $ 166,000 REVENUES $961,865 EXPENDITURES $ 951,687 Revenues Expenditure $236,000 $ 40,000 Credit interest Debit Interest

CEDARE Yearly Operating Expenses

Rented Space to ORACLE CO m2 Rented Space to THARWA CO m2 TOTAL ======== m2 -Annual rental charges m2 X LE 1100 = LE 3,327, Annual rental charges of Oracle store room = LE 4, Annual rental charges of 20 parking space = LE 15, Annual Generated overhead = LE 220, ============ Annual Income from Tenants LE 3,567, Equivalent in USD = 3,567, / 5.70 = USD 625,865.26

11,400, , , Saudi Arabia Egyptian Gov. Self Financing Jordanian Gov. 15,457, , , , ,352,945

Thank You