- Argentina Investments -

Estancia Chapelco S.A., as Chapelco Golf & Resort’s Manager, issues this first Newsletter in order to communicate the most remarkable events connected to the Resort and Chapelco Golf Club, as well as other more domestic issues related to its management and operations.

In reference to the Resort we would like to inform the following:

On May 20th 2005 an agreement was signed by and between Estancia Chapelco SA and Loi Suites Hotels, owned by the Loitegui Family, to allow the building of a world-class 43.100 square-foot hotel, with 81 rooms, a spectacular spa and every other service required to meet world-class tourism demands. The hotel’s project has already been presented to local authorities for approval and construction is scheduled to begin as soon as the project is approved.

An agreement was also signed by and between Estancia Chapelco SA and San Martín de los Andes Telephone Co., under which the Telephone Co. lays the optical fiber and multi-conductor cables, installing a remote station allowing the connection of every lot and common use area to basic telephone communications and broadband internet access. Under this agreement Estancia Chapelco SA payed an additional u$s 30.000.- to the Telephone Co. to cover wire laying expenses. Optical fiber has already been laid and telephone wiring will be extended to the lots as soon as winter weather allows it.

The Maintenance Building and the new Entrance Gate are in the final building stages.

Public street illumination is being laid and is currently at lamp installation stage

The installation of the digital electric power measuring system for each lot will be concluded once the Telephone Co. finishes laying the telephone lines, which is expected to happen in November 2005.

In reference to Chapelco Golf Club we would like to inform the following:

The Golf Course Grand Opening will be held on February 18th 2006 with the special attendance of Jack Nicklaus and his son Jack Nicklaus II. They will delight us with a demonstration of the game and an explanation of the strategy employed in the design of Chapelco Golf 18 holes. The owners and their family group will be invited as well as international, national and local press, members of Chilean, Brazilian, Uruguayan, Paraguayan and Argentine Golf Associations, among others. The protocol, organizations and management scheme as well as the list of the people invited will be finished by the end of the year, reason why this Management is already working on it. You will be receiving the invitation in due time with the program of the activities to be performed.

The first Executive Comitee for the Golf Club is constituted as follows:
• Chairman: Jorge A.R.Taylor
• First Deputy Chairman: Marta Isabel Rossi
• Second Deputy Chairman: José Fernando Vaccarezza
• Secretary: Alberto Cordero Biedma
• Deputy Secretary: Enrique José A. Arcagni
• Treasurer: José Luis Dappello
• Deputy Treasurer: Walter Raúl Waisman
• Regular Member 1º: Raúl Pont Lezica
• Regular Member 2º: Mariano Lopez Eguiazu
• Auditing Member 1º: Olga Raquel Aguirre
• Auditing Member 2º: Luis Alberto Galle
• Auditing Member 3º: Delicia Magdalena Tapia

The 19,400 square-foot Club House is currently undergoing the roofing stage installation and we are working hard looking forward to reach completion in December 2005.

On December 5th 2004 the first 9 holes of the Golf Course have been opened for play and the 18 holes have been opened since March 24th 2005. At the moment, and due to the climate harshness of this winter, the golf course is only temporarily open for play in accordance with the dispositions of the Golf Professional.

The golf course maintenance equipment consists in state-of-the-art machinery which represented a u$s 261.784.- investment. These equipments will be granted by Estancia Chapelco SA to Chapelco Golf Club in compliance with its trustee responsibilities.

From December 8th to December 11th 2005, the 100th anniversary of the Argentinean National Open Golf Tournament will be held at the San Isidro Jockey Club in Buenos Aires. Chapelco Golf & Resort will be the exclusive community with golf sponsor of this important golfing event, looking forward to strengthening the institutional presence of our Club and our honorable condition of being the first golf course in Argentina designed by Jack Nicklaus and Jack Nicklaus II. All charges arising from this sponsorship are financed with a non-refundable contribution of Estancia Chapelco SA.

With reference to the Resort Management we would like to inform the following:

The first owners General Meeting will be held, in accordance with the preference expressed by most owners, in the city of Buenos Aires on October 8th 2005. The invitation to attend the meeting will be sent in due time and manner.

Considering the suggestion put forward by many owners and pursuant to previous notices given, the Manager (subject to the October 8th Meeting’s approval) will charge the appropriate interest rates to the debts of regular condo common expenses and membership fees that have not been settled as from the following maturity date: July 15th 2005.