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Hi all:


Last week, Jonathan and I visited the Lippo Group in Djakarta, Indonesia and
had several talks with the group’s Chairman, Mr. Li Wenzheng (Mochtar
Riady). We made great achievements on future strategic cooperation between
the two parties. Jonathan and Mr. Li Wenzheng signed a memorandum on the
signing of a strategic cooperation agreement between the Lippo Group and
BHR, which includes the following issues:


1. Coal-to-aromatics project. Huadian Coal Industry Group Co., Ltd.
(“Huadian”) of China, the Lippo Group and BHR will form a JVCo to
construct a Coal-to-aromatics project with an annual production capacity of
1 million tons in Indonesia. Huadian, the Lippo Group and BHR will hold a
40%, 30% and 30% equity interest, respectively, in that JVCo. Total
investment for the project is RMB35.2b. BHR will provide financing support
for the project leveraging its resources. The Lippo Group will try to gain
favorable policies from the Indonesia government. Huadian, the Lippo Group
and BHR will sign a strategic cooperation agreement after Mr. Li Wenzheng’s
visit to China later this month.

2. LNG project in Cirebon, Indonesia. Both parties agree that the
China-Indonesia Industrial Park in Cirebon, Indonesia is a promising area to
construct LNG facilities. The China-Indonesia Industrial Park is close to
Balongan, a natural gas field of Pertamina, the national energy company of
Indonesia. BHR will discuss with its strategic partner, China National
Offshore Oil Corporation ("CNOOC") on how to implement the LNG project.

3. Healthcare project. Lippo Group’s medical sector runs 16 hospitals
and has another 24 hospitals under construction in Indonesia. Lippo Group
expects the total number of hospitals under management will reach 70 in the
next 5 years. Both parties agree that this business model could be
introduced into Chinese market. BHR will provide financing support for Lippo
Group’s medical business in China. Both parties will discuss the
cooperation details next.

4. Macau Chinese Bank and Export and Industry Bank of Philippines
projects. BHR has the intention to acquire or invest the Macau Chinese Bank
and Export and Industry Bank of Philippines, both of which are owned by the
Lippo Group. Before April 15th, BHR will inform the Lippo Group the
possibility that BHR could get approvals from the local regulation agencies.
If BHR has the confidence to get approvals from the local regulation
agencies, both parties will negotiate on the above deals. BHR shall have the
preemptive right under the same condition.

5. Hotel project. Chinese hotel market lacks experienced hotel managers.
Singapore Mandarin hotel Management Company owned by the Lippo Group is a
world class hotel management company. Both parties will discuss an
appropriate business model to introduce the Singapore Mandarin hotel
Management Company into Chinese market.


About the the Lippo Group

The Lippo Group is a major Indonesian conglomerate owning 20 listed
companies. The Lippo Group controls in excess of USD20b estimated assets
with significant investments in real estate, hotel, manufacturing, IT,
infrastructure, energy, supermarket, media, financial, healthcare,
education, entertainment industries. Its businesses cover more than 10
countries and regions including Indonesia, Singapore, mainland China, Hong
Kong, Malaysia, the Philippines, Macau, Australia, Britain, South Korea,
etc.

About Huadian

Huadian is a subsidiary of China Huadian Corporation, one of the largest 5
power generation SOEs in China. Huadian is responsible for operating China
Huadian Corporation’s coal businesses. As of the date hereof, Huadian has
total assets of USD9.3b, 21 billion tons of coal reserve, 20 million tons of
annual output capacity, 29 million tons of annual output capacity under
construction, 18 million tons of coal port handling capacity, 4.2 tons of
fleet capacity and holds shares in 2,000 km railways. According to its
business plan, Huadian will have 100 million tons of annual output capacity
in 2018, making it a top 10 coal company in China and also one of the
leading coal companies in the world.


Best,


Ben