See also "Investor Centre"

Key Selling Points

High-Yield Investment

Eco-Friendly

Excellent Capital Gain

Rio - Oranges Products.

Rio-Oranges has planned a standard plot for an orange grove of 4000 trees in an area of approx. 50,000 sq mt (approx. 12 acres).

We calculate an annual production rate (after 3 years' maturity of the trees) of a minimum of 3.5 cases of oranges per tree. At the 2006 price of R$15 per case, this will give an annual estimated gross income in Brasilian Reais (3.5 x 15 x 4000) = R$210,000.

Under the cooperative system the estimated annual maintenance costs to service an orchard of 4000 trees (pruning, fertilizing, treating, etc.) will be R$25,000.

This produces an annual estimated operating profit for the citrus grove of 4000 trees of R$185,000.

Rio-Oranges will enter into a renewable sale-and-leaseback agreement with the investor (the owner of the citrus grove) to plant, maintain, manage and market the product on behalf of the investor for a period of 5 - 10 years in exchange for 50% of the annual operating profit.

This leaves 50% of R$185,000 = R$92,500 for the investor as a projected net return (=US$49,700 or UK£24,000 or €36,000). For current exchange-rates: www.xe.com.

If the average net return is $40,000 on a purchase price of $100,000 (See prices in 'Investor Centre' below) for a citrus grove of 4000 trees, this represents an estimated return on investment of 40% for the duration of the life of the citrus grove (20 - 25 years, after which time it must be replanted).

In addition to providing an annual income for the owners these investments will ensure a substantial capital gain: it is obvious that once the orange grove is established and in production it will be worth much more than the original investment and will have an enhanced market value for resale purposes. We consider a 50% increase in value after year 3 to be a conservative estimate.

The investor will own the deeds to his orchard and may do with it as he pleases. The sale-and-leaseback agreement can be revoked at any time by the investor, subject to 6 months' notice. Should the investor wish to reside permanently in Brazil, under current regulations he may use his purchase to invest in a Brazilian company and obtain a residency visa.

Rio-Oranges intends to renovate a typical Brasilian farmhouse which is located on the plantation. This will be available to owner-investors to use as a holiday home for one or two weeks each year, on payment of a small fee, thus enabling them to view the progress of their orchards and investments.

All costings and prices quoted were calculated using current exchange rates.

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This document maintained by marcm@rio-oranges.com.
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