Project Aims to Establish an Equestrian College, Protect Interests of Horses, Develop a Horse Industry, and Promote Commercial Horse Racing

Meydan today announced plans for a joint venture project; Tianjin Horse City in China. Tianjin Horse City which will be established in Ninghe County, Tianjin in 2010, and will train 8,000 equestrian
professionals, breed 1,000 high quality studhorses, produce high quality
horse feeds, conduct horse auctions, hold international and domestic
professional horse races, promote and impart equine culture and
knowledge to youths, provide tourism services for the public, and
protect the wellbeing and interests of equines.

With a total land area of 5,000 mu and in addition to an equestrian college, feedstuff plant, breeding base, horse hospital, and quarantine centre, Tianjin Horse City will also include five-star to seven-star
luxury hotels, a clubhouse, commercial offices, and residential
facilities. It is estimated that the project will pay hundreds of
millions of taxes and profits to the State within five years, provide
employment for 10,000, and develop a horse industry economy that will
establish production franchise of standard scales across China. Tianjin
Horse City has filed its application to the Chinese Equestrian
Association for the establishment of a national equestrian sports and
horsing racing training base.

Tianjin Horse City is to be jointly established by Meydan City Corporation (Dubai,UAE), TAK Design Consultants (Malaysia), Zhouji Jiye (China) and Tianjin Farm Group (China). The Group will help fulfil the
gaps in the equestrian sports and horse culture industry economy in
China, and merge the modern equine industry operations system in the
coming 15 years.

Five-Year Development Plans

The Company has prepared two five-year plans.

The first plan spans five years and eight months from May 2010 to December 2015. By the end of 2011, the equestrian college, studhorse base and feedstuff plant will be completed and put into trial
operations. By the end of 2012, the horse trading centre, hotel,
clubhouse, shopping centre, and entertainment centre will be completed.
By the end of 2013, offices and living facilities will be completed. By
2014, national standard club events, national equestrian club and
national equestrian park franchises will be developed, and the
preparation of horse culture communication market and international
events market will commence.

Meanwhile, research, drafting and preparation of equestrian standards will commence in May 2010 and be completed and published in December 2013. The Group will pay attention to and make proposals on the policy
of the State in respect of commercial horse racing, seek the support of
the State and local governments, and procure the equestrian sport to
develop in a direction which will benefit the State, the people and the
interests of equines.
The second five-year plan spans from January 2016 to December 2020, which will focus on the listing of the Company
and cohesion with the international horse industry.

Projects:

1. Hua Zhi Jie International Equestrian College
The equestrian college is a college jointly established by the equestrian park, agricultural university, and the sports university. It is responsible to
train sufficiently qualified professionals as future equestrians to
support the horse industry. The college will have veterinary courses,
horse stall management, training courses for equestrian coaches,
sportsmen, umpires, horse breakers, horse breeding, club management,
events management and equine industry design. The college will adopt a
credit system, with two-year and three-year programs, and will recruit
students nationwide. The college will be put into operation in 2012, and
will recruit 1,000 students with an annual growth of 10% intake. There
will be 50 teachers and assistant teachers.
The college will have a land area of 4,000 mu, and a gross floor area of 600,000 m2. The total
investment will be RMB10 billion (roughly US$1.46billion) Its facilities
will include a horse hospital, quarantine centre, multi-purpose equine
facilities, spectator terraces, horse stalls, race tracks, indoor horse
stable, feedstuff plant, outdoor sports field, and outdoor exercise
fields.

2. Horse Breeding Base
It will plan to breed 1,000 different blood horses, most of which will be derived from good stud horses in the world. Horse breeding traditionally has a long cycle, with a breeding
period of one year, a lactation period of 7-8 months, and a training
period of 2-3 years. A highly ranked imported blood horse may sell at
RMB1-10 million or more.
A horse will consume about 10kg fodder and other feedstuff. 1,000 horses will produce about 10 tons of manure. The
base will use a biomass pool to generate methane for daily cooking,
heating and lighting. An annual production of marsh dregs and marsh
liquids may be used to fertilize 7,500 mu of nearby farm land. Marsh
liquid may also be used to spray farm products in place of pesticides,
or be supplied to nearby poultry farmers as feedstuff additives. Such
practices will be both economically beneficial and environment friendly.

3. Feedstuff Plant
The plant may produce 10,000 tons of compound feedstuff, which may satisfy the needs of 2,700 horses for a year. The production will combine imported formulas, technology, key equipment,
and some materials with domestic processing, packaging and marketing,
with a target of 50% export. When the quality of production stabilizes,
the proportion of domestic materials will be increased gradually.

4. Horse Auction Market
Horse auction elements will be constructed according to market requirements, and the direction of breeding will be guided by market operations. It is prepared to establish an agency
relationship with international and domestic horse breeding areas, adopt
video technology for horse auctions, and provide such horse trade
services as customs declaration, animal inspections and quarantine,
customs clearances, industry, commerce and tax procedures, breeding,
medical, logistic, insurance and guest reception services.
The horse market will have an initial trade volume of 700 horses a year, with an
annual increase of 10%, up to 1,050 horses a year in the fifth year.

5. Equestrian Club and Equestrian Part Franchise Company
The franchise company will develop 500 standard equestrian clubs and 500 equestrian parks, with 25,000 employees and 50,000 studhorses, with a
production value of RMB30-50 billion.

6. Equestrian Event Company
The equestrian event company will organize various equestrian events under the authorization of the equestrian association, with the funds from sponsors and the support of
local governments.

The Company will make efforts to establish the China Equestrian Professional League. In particular, in the first year, the company will standardize various equestrian matches, train various talents, and
enhance the level of equestrian sport and the quality of horses in
China; in the successive two years, the company will use formal matches
to promote the construction of standardized clubs, establish industrial
codes and standards, popularize professional equestrian matches, lead
equestrian clubs to become international in standards, and promote the
equestrian and horse industry to adopt healthy, profitable and
sustainable development towards modernization, professionalism and mass
consumer appeal.

7. Horse Quarantine Centre
The horse quarantine centre will be constructed at a location close to the airport. It is an important component of the horse trade centre and horse racing field.

8. Horse Racing Field
The commencement of the construction of a horse racing field will depend on the decision of the State on commercial horse racing. The group will be fully prepared for such a
construction.

9. Hotel, Clubhouse, Shipping Centre and Recreational and Entertainment Centre
There are plans to construct a five-star to seven-star international hotel with a capacity for 3,600 guests. The
clubhouse will be composed of premium and mid class clubhouses. Offices
and living facilities will be able to accommodate 20,000 people.

The recreational and entertainment centre will be constructed as a tourist resort for horse riding, horse breeding, horse viewing and equestrian sports.

1. About International Equine Group
International Equine Group Ltd (IEG) is the flagship investment arm of shareholders Meydan City Corporation and Teo A. Khing Design Consultants Sdn Bhd (widely known as
TAK). IEG will be, subject to contract, responsible for the financing
and invesmtents in Tianjin Horse City. The shareholder Meydan City
Corporation will provide premier resources for all technical and market
inputs required for the horse racing industry in Tianjin Horse City.
Meydan and its associates will bring current practices and industry’
know how in this joint venture. The shareholder TAK will provide all the
technical planning and design inputs, project management, and
construction management services and value engineering services for the
implementation and completion of the project.

2. About Meydan City Corporation
Meydan City Corporation is the developer of the new and iconic Meydan Grandstand in Dubai, UAE. The Meydan Grandstand is the venue of the Dubai World Cup, the richest
raceday in the world. Meydan is tasked to oversee the development of
Meydan City, a complete integrated modern city built around the
racecourse district and serving the needs of the horse racing community.
Horse training centres, mixed-use office, commercial, residential, and
retail developments form the different components of Meydan City. All
the developments are linked by an extensive canal network. The city will
promote and feature modern architecture, the latest building
technology, and environment-friendly developments.

3. About Teo A. Khing Design Consultants Sdn. Bhd. (TAK)
TAK is the world-renowned UAE/Malaysian design planning and engineering firm that provided the technical expertise in planning and design for the
Meydan Racecourse. The company is the master-planner for Meydan City and
the architect for the Meydan Grandstand. TAK provided project
management and construction management services for the completion of
the Meydan Grandstand in a span of three years. The company is
well-supported by its 500-strong personnel with offices in Malaysia,
Singapore, and the UAE.

4. About Hua Zhi Jie Horse Industry Investment Co Ltd.
Hua Zhi Jie Horse Industry Investment Co Ltd., a company jointly established by the above international strategic investment groups and domestic
international groups, project that the total project value will be RMB24
billion in stages in the first five-year construction period to
establish its headquarters in Beijing and to construct the Tianjin Horse
in Ninghe County, Tianjin. The proposed development will include the
equestrian professional training base, studhorse breeding base, horse
feedstuff development, processing and production base, horse auction
market, national and international professional equestrian events
market, equestrian and horse industry market, horse culture
communications market, national equestrian clubs franchise, national
equestrian parks franchise, and equestrian-related commercial, offices,
and recreational and entertainment facilities. By ways of construction,
acquisition, participation and cooperation led by equestrian events, it
will adopt a model of franchise and standardized operations, it will
integrate the ten major equestrian sectors in China, plan a national
horse industry framework, establish industry supply chains, develop the
potentially huge market of China, with the objectives to apply for
overseas listing within 6-8 years.