Appendix 2B Specimen Report for the Valuation of an Office Building

Appendix 2B Specimen Report for the Valuation of an Office Building Background Type of Property Address Commissioned by Instructions Office Building Anonymous A UK High Street Bank To advise on the current Market Value, the Reinstatement Value and the Bare Site Value for loan security purposes. The valuation is to be prepared in accordance with the RICS Appraisal and Valuation Manual and the instructions received from the UK High Street Bank. The valuations are to be reported in pounds sterling on 1 October 2005. Summary of the property This is a three-storey office building of brick construction providing approximately 2000 m 2 of office space. Internally, the building is finished to a high specification. The property is held freehold. About 80% of the space is let to tenants, the balance being vacant and un-let. Documents supplied The following documents were supplied to the valuer: net internal floor areas floor plans site plan occupational leases of 80% of the floor-space report on title prepared by solicitors planning permission rating assessments environmental report prepared by independent consultants letting particulars prepared by letting agents Valuers This report has been prepared by name of company Chartered Surveyors, under the direction of name of qualified valuer plus qualifications and telephone number. The property was

inspected on 29 September 2005, by representatives of name of company Chartered Surveyors. Property report Location Newtown, with a population of 300 000 (2001 census) is the main commercial and administrative centre of South County. The town is well served by excellent infrastructure links and lies approximately 41 miles (66 km) west of London, 27 miles (43 km) west of Heathrow Airport and 78 miles (125 km) east of Bristol. Intercity trains are frequent, taking approximately 45 min into London Paddington, and Junction 10 of the M67 lies to the north of the town. Situation The property is situated on Eastern Road, immediately north of the railway station and the town centre, both of which are within walking distance. Eastern Road runs from Northtown to Junction 10 of the M67 which is 10 miles by car, and Northtown is less than 2 miles by car. Description Set within a newly landscaped area on the edge of the River Wyle, the property was in construction in 2004 and comprises a purpose-built office building on ground and two upper floors. The building has a rectangular floor-plate with an imposing single storey atrium with granite finish fronting the property. There is also surface parking for 21 cars to the rear of the property. Construction The building is of brick construction with stone detailing under a pitched slate roof. The windows are triple glazed and aluminium framed. The office space is fitted out to a high specification, benefiting from fully accessible raised floors, metal pan suspended ceilings incorporating recessed lighting, air conditioning and two eight-person passenger lifts. The floor-plates are flexible, allowing partitioning for cellular offices.

Accommodation The property totals 2000 m 2 of office accommodation over ground and two upper floors. The ground floor comprises the atrium style reception area and 600 m 2 of offices. The first and second floors each comprise 700 m 2 of office space. Condition The property appears to be in good condition throughout. Town planning Newtown District Council has informally advised that the subject property falls under the Local Plan. This plan is due to be adopted in the summer or autumn of 2006 and is currently at the second public enquiry. The site has been identified within the plan as a major development in the town centre. Enquiries to the council have failed to reveal any records regarding the property prior to 2004. However, we have been advised that in 2004 permission was granted for construction of the present building. In addition, in 2004 permission was granted for an increase in car parking spaces from 5 to 21. Environmental considerations From our informal enquiries of Newtown District Council, it would appear that the property previously was occupied by housing. We have assumed that there is no land contamination. Rates We have been informally advised by Newtown District Council that the following entries appear on the Valuation List: Rateable value Ground floor, offices and premises occupied 78 500 First floor, offices and premises 78 500 Second floor (part), offices and premises 31 500 Second floor (part), offices and premises (vacant) 47 500

The current Uniform Business Rate in the pound is 47.4 pence, and we calculate that the rates payable reflect approximately 5.65 per sq ft ( 60.81 per sq m), excluding any phasing or relief. Tenure Freehold Tenancies Approximately 80% if the property is let to three tenants for terms of 5 15 years from 2004/2005. All leases are drawn on an effective full repairing and insuring basis. Tenants are permitted to sublet or assign the whole of their demised premises, but not in part. The total present rent passing is 250 000 per annum, subject to 5 yearly rent reviews in an upward direction only to the market rental value. Details of the tenancies are set out on the attached schedule (see Annex A). The balance of the building, comprising 370 m 2 on part of the second floor is vacant and available to let. Tenants covenants Dun & Bradstreet ratings have been obtained for the current tenants. From these informal enquiries, we are of the opinion that prospective purchasers of the property would regard the tenants overall as being of good covenant strength, well able to comply with their lease obligations, including payment of rent. Market commentary Occupational Market The office market in Newtown has grown over the last decade due to the influx of high-tech companies that have relocated along the M4 corridor. To house these new companies, business parks have sprung up in accessible locations on the fringes of the town. Take-up is at its highest since 1987 at 938 295 ft 2 (87 170 m 2 ), an increase of 92% on 1996. Rents for town centre space range between 17.75/ft 2 ( 191/m 2 ) and 22.00/ft 2 ( 237/m 2 ) according to the quality of space. This is a slight increase on the average prime rent of 20/ft 2 ( 215/m 2 ) over the past 8 years.

In competition with town centre schemes, out-of-town schemes demand higher rents. This market is dominated by the Athens Business Park at nearby Theetown, which has recently achieved 24.50/ft 2 ( 264/m 2 ) for its top grade space, 36 580 ft 2 (3398 m 2 ) was taken by a serviced office supplier at the beginning of this year, on a 25 year lease, with an option to break, on 2014. In addition to the Athens scheme are Happy Valley Business Park and Seedon s Business Park, each achieving higher rental levels than offices situated within the town centre. Owing to the provision of higher quality space, many firms are relocating out of the town centre. This movement will be curtailed when the parks become fully let, and the Government Planning Policy Guidelines start to have an effect, reducing the development opportunities in out-of-town locations. Second-hand space Second-hand space is a major feature of the town centre office market. With a national office occupier recently relocating out of town, 250 000 ft 2 (23 226 m 2 ) of offices have been released onto the market. This increase in the quantity of secondary space available is exacerbated by the lack of demand for space between 20 000 and 35 000 ft 2 (1858 3252 m 2 ). The large number of corporate takeovers and the increase of inward investment in the information technology sector have heightened the demand for space in the region of 50 000 ft 2 (4645 m 2 ). A schedule of recent rental transactions in the town is to be handed out if required. The information set out on the schedule has come from a confirmation of our own in-house records and calls to agents to verify the details. Investment market In 1996, the property sector was the second best performing investment sector, behind UK equities and marginally ahead of gilts. Last year, the total return from direct property investment, at 9.4%, was largely derived from a high income return with little or no capital appreciation. However, this year total returns from the property sector are forecasted to be around 16 18% as yields harden in response to the re-emergence of rental growth. Institutional demand for property remains strong. The intense activity, coupled with a continuing shortage of prime investment opportunities, has driven up prices across all sectors of the market, and prime yields are approaching levels last seen in the late 1980s. Investment

demand and prices are anticipated to remain strong through the latter part of the year owing to the re-emergence of rental growth and the closing of the property/gilt yield gap. Institutional demand remains highly focused on prime stock, particularly West End offices, and M4/M25 offices. There is intense demand for well-located and well-let investments, let on leases with an unexpired term of at least 15 years and which offer prospects for rental growth. The lack of prime investment opportunities has resulted in a hardening of prime yields during the recent months. Rental growth is expected to occur, although the office market continues to be affected by over-supply in many areas. According to local agents the majority of this space is secondary within the town centre. This is likely to be exacerbated over the next year when a major office occupier consolidates its headquarters activities out of town. Despite this increase in availability, prime modern office stock remains in demand as investors fulfil their property allocations. There have been a number of recent investment sales of office buildings within the Newtown area, and is to be handed out if required. Valuations Market value The market value has been calculated using the investment method of valuation. The two fundamental building blocks of this method of valuation are rental value and yield. On the basis of the rental evidence, we are of the opinion that the current rental value of the accommodation offered at the subject property is in the order of 18.50/ft 2 ( 199/m 2 ). This compares with rents passing from the existing tenants of between 15.17/ft 2 and 17.06/ft 2 ( 163/m 2 and 184/m 2 ), which were agreed between September 1996 and March 1997. The property is therefore reversionary. We have available a schedule of investment comparables. On the basis of this and our experience in the market, we would adopt an equivalent yield of 7.5% for the valuation of the subject property. In valuing the vacant space, we have attached a total void period of 2 years to encompass letting period, rent-free period and marketing costs. On this basis, the market value has been calculated as follows:

Present rent passing 250 000 YP in perpetuity @ 7.5% 13.33 3 332 500 Estimated market rent of vacant space ( 18.50/ft 2 ) 73 186 YP in perpetuity @ 7.5% deferred for 2 years 11.53 843 835 Increases at rent review to market rent on existing let space ( 18.50/ft 2 ) 42 725 YP in perpetuity @ 7.5% deferred 4 years (average) 9.98 426 395 4 602 730 Net of purchaser s costs @ 3.75% Say 4.40 million We calculate that the initial yield is 5.5% (net). Once the vacant space is let, the yield increases to 7.1% (net). Note on terminology YP in perpetuity means years purchase in perpetuity. It is the present value of the right to receive 1 per annum in perpetuity, and is the multiplier used to produce the given investment yield or target rate of return. Purchaser s costs of 3.75% are made up of 2% for stamp duty, 1% for surveyors fees, 0.5% for lawyers fees plus VAT added to the professional fees. Reinstatement cost valuation The Reinstatement cost of valuation has been calculated using current billing cost tables as follows: Gross floor area 26 372 ft 2 @ 110/ft 2 equals 2 900 920, but say 2.9 million. This excludes professional fees, demolition, VAT and inflation during the lead-in and construction

periods. The building cost figure of 110/ft 2 ( 1184/m 2 ) reflects all the different components necessary to produce an equivalent replacement building. Bare site value The bare site value has been calculated using the residual method of valuation. A full set of calculations is available if required, and a summary of the inputs is as follows: Cost of construction @ 110/ft 2 ( 1184/m 2 ) Contingencies @ 3% Construction fees @ 12.5% Letting fees @15 % Legal fees on letting @ 5% Four month lead in period Eighteen month construction period Net internal floor area of 19 779 ft 2 (1838 m 2 ) Gross: Net ratio of 75% Promotion @ 10 000 Purchase costs @ 3.75% Office rental value @ 19.50/ft 2 ( 210/m 2 ) Capitalisation rate @ 6.25% Developer s Profit @ 17.5% Cost of finance @ 8.5% Sale of completed and let development 6 months following practical completion On the basis of the inputs, the calculations produce a site value of 956 065, which we have rounded to 950 000. We observe that this represents approximately 21.6% of the market value or 16% of the completed development value shown in the residual valuation. Summary of valuations All valuations have been executed in Sterling, as on October 2005. Market value 4,400,000 Reinstatement valuation 2,900,000 Bare site value 950,000

Standard assumptions and conditions All valuations in the UK are subject to certain assumptions and conditions. Standard assumptions and conditions applicable to the subject valuations are attached at Annex B, together with the standard confidentiality clause. Name of valuer Position in company Name of company

Annex A Property Gross internal area Tenant Lease term Approx. years unexpired Rent passing Rent reviews ft 2 m 2 Per annum Per ft 2 Ground floor, offices and 8 car spaces First floor, offices and 8 car spaces Second floor (part) offices and 3 car spaces Second floor (part) offices and 3 car spaces 6 953 613 Crest Nicholson 6 593 613 Cable and Wireless 2 637 245 Intermec (UK) Ltd 3 956 370 Vacant 15 years from 29.09.2004 10 years from 25.12.2004 5 years from 25.03.2005 19 779 1 838 250 000 14 100 000 15.17 5 yearly 13.75 105 000 15.93 5 yearly 4.5 45 000 17.06 None Notes: All leases are on an effective full repairing and insuring basis. All rent reviews are upward only to market value.

Annex B General assumptions Our valuations have been carried out on the basis of the following general assumptions (if any of them are subsequently found not to be valid, we may wish to review our valuations, as there may be an impact on them): 1. That the freehold interest is not subject to any unusual or especially onerous restrictions, encumbrances or outgoings contained in the Freehold Title. Should there be any mortgages or charges, we have assumed that the property would be sold free of them. We have not inspected the Title Deeds or Land Registry Certificate. 2. That we have been supplied with all information likely to have an effect on the value of the property, and that the information supplied to us and summarised in this report is both complete and correct. 3. That the building has been constructed and is used in accordance with all statutory and bye-law requirements, and that there are no breaches of planning control; likewise, that any future construction or use will be lawful. 4. That the property is not adversely affected, nor is likely to become adversely affected, by any highway, town planning or other schemes or proposals, and that there are no matters adversely affecting value that might be revealed by a local search, replies to usual enquiries or by any statutory notice. 5. That the building is structurally sound, and there are no structural, latent or other material defects, including rot and inherently dangerous or unsuitable materials or techniques, whether in parts of the building we have inspected or not, which would

cause us to make allowance by way of capital repair. Our inspection of the property and this report do not constitute a building survey. 6. That the property is connected, or capable of being connected without undue expense, to the public services of gas, electricity, water, telephones and sewerage. 7. That in the construction or alteration of the building no use was made of any deleterious or hazardous materials or techniques, such as high alumina cement, calcium chloride additives, woodwool slabs used as permanent shuttering and the like. We have not carried out any investigations into these matters. 8. We have assumed that any building services which incorporate electronic devices necessary for their proper functioning, and the software that operates such devices, are Millennium Compliant, or can be rendered so compliant at no significant cost. 9. That the tenants have taken adequate measures to protect themselves against the potential impact of any electronic devices necessary for the proper functioning of their business, and the software that operates such devices not being Millennium Compliant. 10. That the property has not suffered any land contamination in the past, nor is it likely to become so contaminated in the foreseeable future. We have not carried out any soil tests or made any other investigations in this respect, and we cannot assess the likelihood of any such contamination. 11. That the tenants are capable of meeting its obligations, and that there are no arrears of rent or undisclosed breaches of covenant. General conditions Our valuations have been carried out on the basis of the following general conditions: 1. We have made no allowance for any Capital Gains Tax or other taxation liability that might arise upon a sale of the property.

2. Our valuations are exclusive of VAT (if applicable). 3. No allowance has been made for any expenses of realisation. 4. Excluded from our valuation is any additional value attributable to goodwill, or to fixtures and fittings that are only of value in situ to the present occupier. Confidentiality This submission has been prepared only in connection with this reference to arbitration and the contents are confidential to the parties, to their advisors and to the arbitrator. Neither the whole, nor any part of this submission, or any reference to it may be included now, or at any time in the future, in any published document, circular or statement nor published, referred to or used in any way without our written approval of a form and context in which it may appear.