ANNUAL REPORT

CAPITAL ALLOCATION

¤	79,22 %	Real estate
¤	1,80 %	Funds
¤	3,28 %	Raw materials
¤	15,70 %	International shares

A "SAVOIR FAIRE" ONE OF THE KIND

FORMOSA INVESTISSEMENTS has developed a new concept for more than nine years.
This "savoir faire" is constantly increased an it is based on the quality of service.

The main targets in investing FORMOSA INVESTISSEMENTS's assets :
¤ To be as "closer" as possible to the real estate and the financial markets and to find the more profitable conditions in choosing the clients of all our flats.

¤ To expand our customers so making profitable our "savoir faire" and increasing our development.

¤ A welcome with a personal touch to be able to offer the best rental price /m².

¤ Moreover, the assets invested by our tenants are a warranty against the unpaid rent.

¤ To keep the quality and the value of the assets.

¤ To find a solution in the best way to daily problems of our customers.

¤ Thanks to the quality of our service and products, to find easily new tenants.

¤ To offer a tapering rate for the rent if customer agrees to invest in FORMOSA.

¤ More than 80% of our customers coming from Japan; this is reduce the risk of unpaid rent.

¤ By increasing the value of our assets, we can pressure to reduce our administration and operating costs.

A REALISTIC WAY OF DOING

The great part of FORMOSA INVESTISSEMENTS's assets (about 80% and mainly based in Paris) is in rental real estate: this makes profit steadier and prevents from crisis.

The other 20% is invested in stocks and shares to benefit from a growing economy and boost our profit.

DYNAMIC

Evaluate the different investment opportunities
Keep a stedy growing of profit
Check closely the assets management
Analyse always "the market's mood"
Use the right technical tool

FORMOSA INVESTISSEMENTS AND ITS SHAREHOLDERS

Our firm has terrific efforts to improve its communication. So, three axes have been developed :

Quality in communication :

. Internet : www.formosa-investissements.com
. annual report.
. general shareholders' meeting.

Improvement of our website.
To give a personal touch with each of our shareholders... and setting ourselves a double target :

. To make our firm known, its strategy,its activities and goals..
. To share our point of view .

RESULTS

* (value of FORMOSA INVESTISSEMENTS’ s share at 30/03/06)

FUTURE

The FORMOSA-INVESTISSEMENTS’ s future looks fine in short/long term.
The dividend is gonna be 85% of profit.
Our firm and its original "concept" could be sold to or integrated into an important group in the future; or it could be listed on the stock market. Anyway everything will depend also on the evolution of our activity and our assets and these are two tnings that actually we can not be planned.

FORECAST DIVIDEND

2006	1.10 Euro
2007	1.22 Euro
2008	1.30 Euro
2009	1.35 Euro
2010	1.50 Euro
2011	1.60 Euro
2012	1.65 Euro
2013	1.70 Euro
2014	1.80 Euro
2015	2.10 Euro

ASSETS EVOLUTION

* ASSETS 2005 : 1.003 292 euros