The Tourism Master Plan includes incentives to promote investment in Panama, which include that there will be no taxes for 20 years and the import of a great variety of goods free of taxes (when they are related to the tourist business. Below please find the Law with all its details.

REAL ESTATE:

Our country has many advantages for investment in real estate. Many investors have discovered this opportunity and have invested in properties located in the cosmopolitan city of Panama, which is located across the Bay of Panama in the Pacific Ocean, which increases its value. In the last five years, there has been a rapid growth in construction in all the City of Panama, which has grown to areas that before were without development.

Some of these new communities are Costa del Este, in which residential projects of high cost have been built, Amador, which formerly belong to the Canal Area, in which properties are being developed tourist projects, industrial and residential, Punta Pacífica, which is part of an ambitious project that contemplates the realization of refills in the sea of two islands across the Bay of Panama, it has been developed partially with the construction of shopping malls, a hospital of international category and various luxurious condos.

In the City of Panama, the Casco Antiguo is located, area of high historical value because of its French and Spanish heritage during the colonial period. In this important sector, one can acquire properties for the restoration, and also benefit from a special incentive law which exonerates taxes.

There are many interesting sites for the real estate market, especially in beaches, islands and mountain areas, which are located in the interior of the country and many are located within the Tourist Incentive Areas, which will provide many benefits if the acquisition of the property contemplates any tourist development.

Excellent acquisitions can be made in these places at prices still low, be it for individuals or for developers. The development of resort-communities and of retirement is one of the most attractive opportunities.

Our group also offers an ample line of legal services, which are part of the process of purchase of properties in our country and assure you an investment without risks or frauds.

PANAMA OPPORTUNITIES INC. can advise you on all the steps necessary for your investment project in Panama.

B. INCENTIVES FOR THE REAL ESTATE SECTOR

· Law 54: July 22, 1998. Wherein measures are taken for the judicial safety of investments.

· Law 9: August 27, 1997. Wherein a special incentive is established for restoring or purchase of any property in the Casco Antiguo of Panama.

FINANCIAL SERVICES:

Representing more than 70% of the Internal Net Product, the service sector makes up a great part of our economy. This sector is related to our concept of an international center for commerce and investment.

The Panamanian financial sector is head of the most modern banking center in Latin America. This center is regulated according to the most strict international laws, assuring the free circulation of capital, confidentiality and stability, making of this one of the strong points of our industry of services. The use of the American dollar as legal coin and the non-existence of a Central Bank, the lack of monetary politics, as well as exchange controls, have minimized the small risks of inflation.

INSURANCE AND RE-INSURANCE:

Panama is recognized by the community of insurance and re-insurance as a jurisdiction of first category, which offers an ideal frame for the operation of insurance companies of prestige and solid constitution. We have 24 insurance companies, of which the nationals represent the 70% of the market. We also have several international insurance companies operating in the Republic of Panama. Our country has turned out to e the only domicile of Spanish tongue for the establishing of captive insurance companies, with the approval in 1996 of Law No. 60 which regulates this business.

Some insurance national companies of great prestige are: ASSA Compañía de Seguros, Aseguradora Mundial, Internacional de Seguros, among others. Some international insurance companies installed in Panama are: Panamerican Life Insurance Company, National Union Fire Insurance Company of Pittsburgh, Pa, British American Insurance Co. and Assicurazioni Generali from Italy.

INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS:

Our service industry has been complemented by a system of modern telecommunications which is operated by some of the most import and prestigious international companies in the industry. Panama offers a level of connection the same or mayor to that of New York, London or California.

Since 1997, when the first international submarine cable of optic fiber was installed, at least five more cables of optic fibers have now been installed in our country, for its route of connection between both oceans. Among the submarine international cables which have arrive to Panama we have the Panamerican, Maya-1, Americas 3, Arcos 1, Project Oxygen and Global Crossing.

Among the advantages offered by Panama, is its long journey along the industry of services. It offers a telecommunications market opened with an infrastructure which permits easy access to wide band, a modern international Banking Center, multimodal logistics for the transportation of merchandise, fiscal incentives oriented towards investment, besides an ambiance of stability, both social, economic and political.

Panama offers a wide band which has forced the establishment of international call centers, since our country counts with a strategic geographical position which places her in the center of services for the international markets. There is a special law for promoting the establishment of Call Centers, the Law 54 of October 25 2001. In Panama we have installed with success, international Call Centers as Dell Computers, Sitel, Spherion, among others.

Our labor is considered highly qualified for this type of business with high domain of the English language which is beneficial for the installation of Call Centers.

In terms of growth and rentability, the electronic commerce is the most aggressive modality to make business during the last years.

C. INCENTIVES FOR THE SERVICE SECTOR

· Decree Law No. 18, 17/06/48. By which the Colon Free Zone was created. All merchandise that enters this zone is free of customs tax.

· Decree Regulatory 1; 3/3/39. Stipulating legal regulations for government patents, marks and commercial names.

· Law No.60; 29/7/96: By which operations are regulated for captive insurance companies.

· Law No.32: 26/2/27. By which the Offshore Companies are regulated. Two or more persons of any nationality, even though they are not domiciled in Panama, may constitute an offshore company.

· Decree No.18; 14/3/94. Regulates the tributary regime of the merger of companies.

· Law No.55; 20/12/84. For the Insurance Broker. Regulates the operations of the insurance companies and its capitalization.

· Law No.56; 20/12/84. Regulates the operations of the re-insurance companies.

· Law No.9: 26/2/98. Law which reforms the banking system and creates the Superintendence of Banks.

· Decree Law No.17: 22/8/56. Law which creates the Superintendence of Insurance.