The Puhua project, the company's 79 acre joint venture located in Baqiao project, has a total land area of 192,582 square meters and an expected gross floor area of about 610,000 square meters.

In December 2008, we formed a joint venture with Prax Capital China Real Estate Holdings Limited. Prax Capital invested US$29.3 million cash in the joint venture, the joint venture acquired the land use rights early in the first quarter 2009, and the joint venture is progressing on schedule. Here is where the progress stands as of March 24, 2009:

• The detailed site planning and architectural designs are well underway.
• Our marketing research company is performing focused but extensive research to determine our best target customers for this premium riverfront property.
• We have selected the firm that will do the detailed market positioning to reach those target customers. That firm also will be our exclusive promotion and sales agent for the project.
• The 79 acres have been cleaned and are ready for the excavation of the building foundations to begin as soon as the detailed site plan becomes final.
• Ground breaking currently is scheduled for June 2009, with the first pre-sales likely to start in September 2009. The starts could be delayed somewhat if the real estate softens instead of improves.