1. OVERVIEW OF SUBIC BAY FREEPORT ZONE PHILIPPINES

2. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 2 The VISION “The Subic-Clark corridor will be the most competitive international service and logistics competitive international service and logistics center in the Southeast Asian Region” center in the Southeast Asian Region” from the inaugural speech of Her Excellency President Gloria Macapagal-Arroyo

3. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 3 PRODUCTION CENTER Subic-Clark Corridor HIGHLIGHTS  1,004 sq km* development area bound by the Clark Special Economic Zone in the north & Subic Freeport & Special Economic Zone in the southwest * Combined area of Clark & Subic is 36.5x larger than Macau’s present area of 27.5 sq-km.  US$14-billion existing infrastructure in former US military bases of Clark and Subic  A major component of the Metro Luzon Urban Beltway development matrix  Tax and duty-free incentives Metro Luzon Urban Beltway PACIFIC GATEWAY METROPOLITAN AREA

4. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 4 Subic-Clark Area Development SCAD Vision To develop the Subic-Clark Corridor into a globally competitive logistics hub for the efficient movement of people, goods, services & data, in partnership with the private sector Subic Seaport Clark Airport North Rail North Luzon Expressway Subic-Clark Toll Road NLE Extension (Clark-Tarlac Road) A Seamless Economic Corridor

5. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 5 Subic – Clark Growth Corridor Commercial Gateway Entertainment Haven Software Development / Hi-Tech Manufacturing Hub Logistics Hub

6. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 6 SBMA Charter SBMA Charter (RA 7227) The SBMA shall promote the Subic Special Economic Zone into a self-sustaining, industrial, commercial, financial and investment center to generate employment opportunities in and around the zone and to attract and promote productive foreign investments. Since its inception in 1992, the Subic Bay Freeport has become one of the country’s premier showcases for economic development, a symbol of pride for every Filipino, and one of the most successful models of military base conversion in the world. Key Performance Indicators: 638 approved investments US$3.3 billion in committed investments 59,000 jobs created

7. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 7 SUBIC BAY, 94 YEARS U.S. Naval Base

8. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 8 Subic’s Advantages  Strategic Location  World Class Infrastructure  Highly Qualified Workforce  Competitive Incentives

9. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 9 The strategic location of the Subic-Clark corridor in the heart of the growing economies of Asia gives it a most distinct edge Average Flying Hours:  Tokyo 3:35  Hong Kong 1:20  Jakarta 4:25  Kuala Lumpur 3:30  Singapore 3:00  Shanghai 2:20  Seoul 4:00  Taipei 1:20  Bangkok 3:00  Brunei 2:30  Vietnam 2:30

10. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 10 The Gateway… the Subic Freeport and Special Economic Zone BASIC INFO  A 670 sq.km. commercial & tourism destination in a high quality natural environment accessible by land, sea & air  A complete port with 15 operational piers & wharves, including a passenger/cruise ship terminal + a fully operational international airport with a 10,000-sqm passenger terminal & 2.7-km runway  A choice investment site of more than 650 local & foreign investors with a cumulative committed investment of US$3.85 billion & a total workforce of more than 60,000

11. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 11 Subic is a complete port There are a total of 15 operational piers and wharves capable of handling all kinds of sea vessels South China Sea New Container Terminal Cubi Point Subic International Airport Subic Bay Techno-Park Industrial Park (Phase 2) Industrial Park (Phase 1) NSD Area ENRON Power Plant Central AreaSRF Area Boton Wharf POL Pier Marine Terminal Sattler Pier Rivera Wharf Bravo Wharf Yacht Club Passenger Terminal Leyte Pier Nabasan Wharf Camayan Wharf

12. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 12 The New Container Terminal at Subic Bay Freeport (target completion: 2007) The container terminal is a 13 m deep, 560 m long, two-berth port which will effectively decongest the port of Manila, and will potentially contribute in filling the capacity shortage (14 million TEUS) projected for Southeast Asia.

13. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 13 The Subic Bay International Airport (SBIA) The former Naval Air station was transformed into a modern international airport with a 10,000 sq.m. passenger terminal. The airport currently houses FEDEX 1, the Asian distribution hub of Federal Express.

14. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 14 INDEPENDENT AND RELIABLE SERVICES Potable Water SupplyEfficient Waste Management System 100,000-line Capacity Telecom Facilities Stable Power Supply

15. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 15 Other Services  MEDICAL & HEALTH SERVICES  TRANSPORTATION SERVICES  EUCHARISTIC SERVICES  COURIER SERVICES  BANKS

16. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 16 24-Hour Security Monitored movements at all SBMA gates through 24-hours Close Circuit TV monitor 911 Emergency Hotline for Fire, Medical & Rescue Operations

17. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 17 SBF Tax and Duty Free Incentives Exemption from all local & national taxes with only a 5% corporate tax on gross income Duty free importation Unrestricted entry of foreign investments No foreign exchange control Visas available to foreign nationals Expanded allowable Deduction and Higher Percentage of Income Allowable from Sources within the Customs Territory for Regional Enterprises Qualified industries may also benefit from a 4-6 year income tax holiday

18. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 18 INVESTOR PROFILE Number of Subic Bay Freeport Registered Enterprises, as of May 2006 by Industry Number of Subic Bay Freeport Registered Enterprises, as of May 2006 by NationalityNationality Investments (in US$) Number of Companies Korean1,005,336,354.4223 Filipino630,463,532.12369 Japanese224,893,918.5629 American451,863,55621 Taiwanese177,128,99044 British41,830,46412 Swiss2,360,0002 Singaporean452,0003 HongKong260,0001 Dutch32,1631 *Others663,679,33479 TOTAL (operational)584 * * Malaysian, Chinese, Australian, French, Danish, Finnish, German, Norwegian, Pakistani, Swedish, Austrian, Mixed Trading, Warehousing, Transshipment ServicesTourismMfg Port Related RetailingInstitutions Estate Dev't & Mgmt. Utilities

19. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 19 INVESTMENT PERFORMANCE Number of Approved Investments Jan 2001 – June 2006 (cumulative) Committed Investments Jan 2001 – June 2006 (cumulative) In US $ Millions

20. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 20 HANJIN UPDATES AS OF JUNE 23, 2006 Over all progress development - 3% Current number of workers - 1, 400 Ongoing Construction: Board Access / Temporary Office / Batching Plant / Crusher Plant Boarding House / Shelter / Dry-dock / Earthwork HANJIN HEAVY INDUSTRIES

21. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 21 HEBEI XINGTAI JINGNIU (Crystal Bull) Company, Ltd. 32 ha. Glass Manufacting in Maritan Hill, Subic Bay Freeport Zone Projected Investment of US$ 312 million Projected Employment: 2,000 direct and indirect jobs

22. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 22 Total number of active workforce Jan 2001 – June 2006 (cumulative) 勞動力就業人數 By Sector YearManufacturingServicesConstruction 200114,24420,20711,291 200217,91222,7268,236 200316,95632,3874,843 200418,63633,8683,371 200517,24636,5355,983 200618,44436,5496,765 EMPLOYMENT GENERATION

23. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 23 Central Business District Investment Sites in Subic Bay Freeport Zone

24. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 24 CENTRAL BUSINESS DISTRICT

25. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 25 COMMERCIAL LOT 25,416 SQ.M. COMMERCIAL LOT 1,100 SQ.M. COMMERCIAL LOT 1,100 SQ.M. COMMERCIAL LOT 2,576 SQ.M. COMMERCIAL LOT 4,000 SQ.M. COMMERCIAL LOT 1,600 SQ.M. Current Central Business District

26. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y Existing Subic Bay Industrial Parks STEP MARITAN SBIP I Companies Total Area Available Area SBIP I 28 114 ha 3 ha SBIP II 15 45 ha 0 ha STEP10 60 ha 13 ha TIPO0 100 ha MARITAN0 30 ha Total324134 SBIP II TIPO

27. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 27 Investment Sites in Subic Bay Freeport Zone Subic Gateway District: The New Commercial Area

28. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 28 SBIP PHASE 1 WISTRON SBIP PROPOSED COMMERCIAL AREA SBIP PHASE 2 PROPOSED ROTONDA TO MANILA TO AIRPORT TO CBD NSD ROYAL COMMERCIAL AREA SBIP PHASE 2 SBDMC PROPOSED COMMERCIAL MALL & CONVENTION CENTER SUBIC GATEWAY DISTRICT

29. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 29 SBIP RESIDENTIAL VILLAS SBIP RESIDENTIAL VILLAS 35,000 SQ.M. 35,000 SQ.M. SBIP OFFICE / COMMERCIAL CENTER SBIP OFFICE / COMMERCIAL CENTER 56,885 SQ.M. 56,885 SQ.M. SBIP TRADE CENTER SBIP TRADE CENTER 10,891 SQ.M. 10,891 SQ.M. SBIP COMMERCIAL CENTER SBIP COMMERCIAL CENTER 14,855 SQ.M. 14,855 SQ.M. GEORGE DEWEY GEORGE DEWEY RESIDENTIAL (B- 1157) RESIDENTIAL (B- 1157) 1,350 SQ.M. 1,350 SQ.M. SBIP COMMERCIAL CENTER II SBIP COMMERCIAL CENTER II 10,221 SQ.M. 10,221 SQ.M. COMMERCIAL LOT COMMERCIAL LOT 18,923 SQ.M. 18,923 SQ.M. GATEWAY COMMERCIAL CORE GATEWAY COMMERCIAL CORE 32,844.16 SQ.M. 32,844.16 SQ.M. SBIP INDUSTRIAL PARK PHASE 2 SBIP INDUSTRIAL PARK PHASE 2 Subic Gateway District Key Development Areas

30. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 30 A= 2,240.98 SQ.M. A= 10,670.47 SQ.M. A= 7,241.75 SQ.M. A= 3,454.05 SQ.M. A= 5,447.44 SQ.M. PALM STREET SUNSET ROAD TO BE REHABILITATED AMERICAN HARWARE PROPOSED ENTRY FROM TIPO PROPOSED ENTRY FROM BINICTICAN PARKING HIDEMITSU ROYAL PARKING BPI FOOD & BEVERAGE PUREGOLD VALUE CITY JO CAST PTT GAS STATION PETRON RIZAL HIGHWAY ARGONUAT HIGHWAY SBDMC TO MANILA TO CBD TO AIRPORT PROPOSED MINI-ROTONDA SBIP PHASE 2 SBIP PHASE 1 PROPOSED ROTONDA SBIP PROPOSED COMMERCIAL AREA PROPOSED COMMERCIAL AREA PROPOSED COMMERCIAL MALL & CONVENTION CENTER (SEE IMAGE) PRECISIONTEK A= 6,030.45 SQ.M. A= 2,141.14 SQ.M. A= 2,312.66 SQ.M. A= 2,294.65 SQ.M. A= 2,526.25 SQ.M. A= 2,549.78 SQ.M. TO SBIP PHASE 2 Subic Gateway District Key Development Areas

31. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 31 SBIP 1&2 STEP Investment Sites in Subic Bay Freeport Zone INDUSTRIAL AREAS

32. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 32 Investment Sites in Subic Bay Freeport Zone FUTURE LIGHT INDUSTRIAL AREA TIPO

33. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 33 Future Software Development Park

34. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 34 Future Software Development Park

35. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 35 Investment Sites in Subic Bay Freeport Zone FUTURE LOGISTICS HUB

36. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 36 Future Logistics Hub

37. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 37 Actual Progress As of May 2006: 66.49% AIRPORT NAVAL SUPPLY DEPOT BULK GRAIN TERMINAL BULK FERTILIZER TERMINAL CRUISE SHIP TERMINAL + ADMINISTRATION BUILDING PIER LOCATIONS Excluding Camayan Pier and Nabasan Pier at Naval magazine Area LEYTE PIER BOTON WHARF ALAVA PIER Subic Port Development Project

38. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 38 Future Logistics Hub

39. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 39 THE NEW TOURISM AREA Investment Sites in Subic Bay Freeport Zone

40. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 40 Hidden Beach Area Site Area: 1.32 hectares A Core Ecological Zone of the Subic Bay Protected Area Contains the most abundant marine life in the whole Subic Bay Other Areas: EOD Site/ Camayan Point – 2.34 hectares Firing Range – 2.99 hectares The two areas are within the Subic Watershed and Forest Reserve.

41. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 41 LOOP 2, GROUP 6 / 402,861 SQM HILL 394 AREA = 500SQM LOT OF B-2043, CORREGIDOR HIWAY 9,200 SQ.M. HIDDEN BEACH AREA 13,200 SQ.M. Future Tourism Area

42. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 42 GRANDE ISLAND Site Area:approx. 44 hectares Facilities:20 quadruplet chalets 2-hectare Inland Beach Lagoon Plenary Hall 2-storey hotel (15 rooms) 2-storey restaurant

43. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 43 The Freeport is a self-contained urban center with world-class services Major infrastructure & features Tourist attractions & facilities Independent & reliable services Other services Seaport & airport Business district Round-the-clock security & emergency facilities Theme parks Culture & history Natural attractions Entertainment Sports & adventure Sun, sea & sand Wellness outlets MICE venues Shopping & dining Potable water supply Efficient waste management system 100,000-line capacity telecom facilities Stable power supply Medical & health services Transportation services Eucharistic services Courier services Banks Educational institutions

44. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 44 Tourist Attractions & Activities  Culture and History: Our native Aetas, historical landmarks like the Spanish Gate, US ammunition bunkers, among others  Theme Parks: Ocean Adventure and Zoobic Safari  Natural Attractions: Pamulaklakin Trails, JEST Camp, Apaliin Trails, Triboa Mangrove Park, among others  Entertainment: Cinema, Nightlife, Events and Casinos  Sports and Adventure: Firing Range, Basketball Gym, Tennis Center, Track Oval, Watersports, Go Kart, Horseback Riding, Parasailing, Slide for Life, Golf, Airsoft/Paintball

45. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 45 Tourist Attractions & Activities  Sun, Sea and Sand: Camayan Beach, All Hands Beach, Grande Island, Nabasan Beach, Dungaree Beach  Wellness Tourism: Ritz Spa, Larossa Spa, Sabay Spa, Slimmers World, Tonton Thai Massage, among others  MICE / Conference Facilities: Subic Bay Arts Center, Legenda’s El Centro, among others  Shopping and Dining: Royal Subic, Pure Gold, Freeport Exchange, Aresi Restaurant, Xtremely Xpresso, Pier One, Gerry’s Grill, among others

46. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 46 Accommodation TypeRoomsCapacity 20Hotels 1,217 3,322 pax 224Housing units 224Housing units6861,650 22Quonset Dormitories 44732 Total1,9475704 Tourist Attractions & Activities

47. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 47 Retirement Villages SUBIC HOLIDAY VILLAS 124 Rooms POCO A POCO CONDOMINIUM HOTEL 30 Units SUBIC HEIGHTS 30 Units TROPICAL PARADISE RETIREMENT VILLAGE 22 Units SUBIC BAY EDEN’S LIFESTYLE CENTER 10 Units Retirement Facilities  Within 10-15 minutes drive from Central Business District, restaurants, duty-free shops, banks & other community amenities  Traditional & alternative medical services & facilities, private gyms/health clubs & spas available  Adequate ICT facilities to keep residents and visitors wired with the rest of the world

48. S U B I C B A Y M E T R O P O L I T A N A U T H O R I T Y 48 Your Gateway to Business & Leisure