MEXICO - IMMEX. Looking into 2007 & Beyond PRESENTED BY: Rex Maingot,CCIM Senior Vice President

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1 MEXICO - IMMEX Looking into 2007 & Beyond PRESENTED BY: Rex Maingot,CCIM Senior Vice President rex.maingot@cbre.com 221 North Kansas, Suite 2100 El Paso, Texas Phone Fax

2 Maquiladoras 2007 and Beyond State of the Market Real Estate Overview Cap & Lease Rate - Trends Logistical Opportunities Ports and Rail

3 STATE OF THE MARKET - SNAPSHOT 1/June/2007 City Supply Sq.Ft. Vacancy Absorption 3 yr Average Sq. Ft. Available Buildings Available New Spec Buildings 60 90K 100K + Monterrey 75M 2.5% 5.2M 1.84M Juarez 51M 6.5% 4.25M 3.86M Tijuana 42M 3.8% 1.96M 1.6M Reynosa 28M 6.6% 2.49M 1.8M Mexicali 17M 6.9% 0.4M 1.18M Chihuahua 13M 14% 0.3M 1.8M San Luis Potosi 9.5M 2.5% 0.4M 0.22M

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5 JUAREZ RENT/RATE ANALYSIS Industry Rent Analysis NNN/SF/YR Capitalization Rate Analysis CAP RATE

6 Toyota Tijuana/Tecate

7 Electrolux Cd. Juarez

8 Corning Cable Systems - Reynosa

9 SUPPORT INDUSTRIES Plastic injection molding Metal stamping & finishing SMT PC Boards Machining Plating Rubberized bonding Welding Woodworking Wire harnesses Logistics Supply Chains 3PL s

10 Market Trends Shorter Product Life Cycles Greater diversification of Products Shift from High Volume Low Mix to Low Volume - High Mix These Characteristics demand shorter and more efficent supply chains.

11 MOST POPULAR IMPORT ROUTES TODAY

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13 NEW ALTERNATIVE ROUTES TO THE CENTER OF THE NATION (2005) 8,000 TEU VESSELS COMING TO PANAMA TWO 4,000 TEU VESSELS

14 Panama Canal at 90%Capacity 5,000 TEU s Limit

15 MSC PAMELA - TOTAL CAPACITY: 9,200 TEUs

16 Punta Colonet $3.5 Billion USD Pacific Ocean Ports

17 Logistics-Key opportunity for Mexican Ports Port of Shenzen - China

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19 Annual Container Volume = 875,000 Teu s Port of Manzanillo Manzanillo is Mexico's principal deep-sea port handling the highest volume of cargo on the country's Pacific coast. Manzanillo is the only port in Mexico capable of double-stacking containers onto railcars, providing efficient movement of cargo by a private railroad company, Ferromex throughout Mexico and as far as the Texas border. The port is strategically located to handle international commerce with the countries located along the Pacific Rim. It also constitutes an ideal point for transshipment for Central and South American countries. Currently 26 shipping lines regularly call on the Port of Manzanillo which connects us to 74 destinations in the world. Expansion of Container Terminal = $200 Million USD

20 Port of Lazaro Cardenas KSC = 2.5 million containers/year The Port of Lazaro Cardenas is the deepest port in Mexico. Its access channel has a depth of 54 ft, which allows the arrival of ships of up to 150,000 tons. The three largest shipping companies, CP Ships, APL and Maersk Sealand have regularly scheduled service. The main products being imported / exported include steel (related to machinery, auto parts, motors and equipment and construction), petrochemical products, turbines and electric components. Lazaro Cardenas is the starting point of the Lazaro Cardenas-Kansas City Corridor, which is a trade route linking key Asia-Pacific suppliers to Kansas City via a ships-to-rail terminal. This trade route is a good alternative for shippers seeking to avoid the West Coast bottleneck. The port is in the midst of a 20-year, US$290 million program that will expand the existing terminal to include a 4,887-foot berth, and a channel 59 feet deep capable of accommodating four ultra large container vessels (ULCVs) simultaneously.

21 Kansas City Southern & Port of Lazaro Cardenas KCS Investment = $1.5 Billion Hutchison - $200 Million Terminal underway Initial Capacity = 2.5 million containers/year Unloading cost = 30% of LA & Long Beach Projection 2030 = 6 million containers/year

22 KANSAS CITY SOUTHERN - RAIL CORRIDOR CHICAGO 200 MILES more than from LA HOUSTON 400 MILES less than from LA PORT OF LAZARO CARDENAS

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24 Frequency Reliability Speed to market

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26 Guanajuato Inland Port (GIP) $ 100 million Investment Parque Logistico - SLP $ million Investment

27 CB Richard Ellis is BULLISH ON MEXICO