PRESS RELEASE – 15thSeptember 2006

Walter Junger & Friends, Ltd. is developing the first ultra-luxury boutique resort and SPA villa in Svetlogorsk (Kaliningrad region, Russia).

Kaliningrad – part of the Russian Federation with one million inhabitants is fast becoming one of the exclusive destinations for discerning Russian and other European travellers seeking individualized luxury, beautiful nature and serene relaxation.

Being located on the Baltic Sea, Svetlogorsk (formerly called Rauschen) is a village reminiscent of the once famous German Seebaeder, in the centre of a national park edgingthe unique natural dune landscape, the Curonian Lagoon. Svertlogorsk has a long history,having been a part of the East Prussian Empire and dating back to 1258.

Now, exclusive villas are being built for affluent Muscovites, and heritage sites are being restored to attract tourists seeking luxury with a traditional historic charm.

The hotel project will be the first of its kind in the region, offering 11 luxurious suites from 65 to 135 square meters, with the latest in technology and luxurious, elegant yet warm design. It is the creation of well-known Austrian interior designer, Rainhard Köck, in cooperation with Walter Junger & Friends, Ltd.

At the Kaliningrad airport, hotel guests will be personally met and escorted by a multilingual limousine butler, and after a 20-minutedrive, they pass through the property’s cast iron gates and catch a first glimpse of the property’s picturesque landscaped grounds andthe 130-year old facade of the villa (formerly known as the Hotel Dune) with its majestic views of the Baltic Sea.

The hotel will offer a unique food and beverage concept, and a spa villawith its local source of mineral water and signature treatments using amber stones from Svertlogorsk,and healing mud baths in perfect climatic conditions. To ensure that the expectations of the spa villa guests are not only met, but exceeded, leading Asian spa consultant Ms. Dianna Chia ofSpa Innovations Singaporehas been commissioned to establish anew “turn-of-the-19th”century spa experience.

The GALERIE Helmut Junger,Berlinwill be responsible forthe creation of a unique, sophisticated art concept which will be implemented throughout the hotel and spa villa.

Highly personalized service standards will also be established to complement the projects many interesting and uniquephysical attributes, and to cater to the most discerning travellers, in addition to positioning the hotel as a unique jewel in the European hospitality market.

Walter Junger was specially selected by the owning company Evolution Capital Group of Moscow, upon the recommendation of SELVA Projects GmbH, to develop this unique luxury property.To support this landmark project which is scheduled to open in December 2007, hewas able to involveseveral key partners, each specialists in their field. This strategy also reflects the business philosophy of Walter Junger & Friends, in order to offer all clients a complete range of services covering all possible needs of such projects.

Jürgen W. Laue, Hotel Construction, Architecture & Project Management andChristoph Gellersen Consultants from Hamburg will be in-charge of the project management and the architectural guidance. Construction and building services will be executed by a German construction company. Rudi Bachhuber of SELVA Projects will execute the interior design guidelines of Reinhard Köck. Meike Müller, managing director of mc quadrat, Berlinand her team will create the hotel’s corporate identity and brand strategy.

Walter Junger, with the team from Walter Junger & Friends, Ltd., will provide overall guidance and lead the project development, set up the hotel operational structure and take charge of the opening of the hotel.

For further information, kindly contact Martina Maly of Walter Junger & Friends, Ltd.or visit ourwebsite:

Contact

Berlin (Main Office):

Martina Maly - Operations Manager

Walter Junger & Friends, Ltd.

Kadiner Strasse 11

10243 Berlin, Germany

Tel: +49 (0)30 212 37 015

Fax: +49 (0)30 212 37 016

E-mail:

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