Research, Report & Profiling Services by IPOdesktop.com Promotora Valle Hermoso Stock symbol: PVLH.OB………….………………….……………………..Float: 1mm (est)

Stock price: 8/04/06: $1.05……………………….Common shares (8/1/06/06: 6mm est)

52-week price range: $.60 - $3.20………….…..…Equity market capitalization: $6.3mm

Recent News…..Stock Price…..Chart…..SEC Filings

Watch: PVLH Virtual Road Show

Listen: interview with CEO Fernanda Rosales

RECENT DEVELOPMENTS

$4.5 million in revenue expected from projects four and five (see below), after earning 18% pretax on sales of $652,000 for the year ended December 31, 2005

PVLH intends to have financial statements audited annually and quarterly beginning with the quarter ended June 30, 2006. Results for the year ended December 31, 2005 were audited.

BUSINESS

Promotora Valle Hermoso generates positive cash flow by designing, constructing, and marketing single-family and multifamily homes.

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Address: 609 Hampshire Ln., Oviedo, FL 32765

Telephone: (800) 377-2137

CEO: Maria Fernanda Rosales, mrosales@promotoravh.com

Web Site: http://www.promotoravh.com/

State or other jurisdiction of incorporation or organization:

Accountants: http://www.moorestephens.co.uk/

Legal: Goldberg Law Group PA, St. Petersburg, Florida

Transfer Agent: Pacific Stock Transfer Company

Investor contact: Fanny P. Narvaez Marin, (800) 377-2137, promotoravh@earthlink.net

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DEMAND EXCEEDS SUPPLY

The housing deficit in Ecuador is 1,200,000 houses, and only 60,000 new units built each year, according to a recent market survey

PVLH’s mission is the reduce the housing deficit by providing housing solutions in Ecuador’s capital and second largest city Quito, where the housing market has three segments

Low middle level, up to $28,000 dollars

Middle level, up to $40,000 dollars

High middle level, up to $70,000 dollars

However, the average price of a single family housing unit in Quito is $67,000

PVLH’s housing units range in price from $45,000 to $65,000

QUITO & ECUADOR OVERVIEW

Size and population

Ecuador is roughly twice the size of Pennsylvania with the same population, 13.5 million

Two major cities comprise 30% of the population: Guayaquil, 2,117,553; and Quito, 1,615,809 comprise

Quito

The capital and second largest city in Ecuador

The north is modern with major businesses, airline offices, embassies, shopping centers and banks and, of course, government, which provides stable employment for many residents. The south consists mainly of working class housing areas

Guayaquil

The most important port, largest city and financial center of Ecuador.

More exports and imports pass through Guayaquil than through all the other ports combined. It is also the most populous city in the country.

Urban population growth

Urban population growth estimated at almost to 4 percent annually, which is 1 to 1½ percent greater than the population as a whole Source of money

Oil, Ecuador’s top export, accounts for 41 percent of exports, much larger than the next export category, bananas and plantains, which is less than 20 percent. Oil revenues have accounted for one-third of central government budget revenues in recent years.

Money transfers received by relatives in Ecuador from ‘overseas’ exceeds oil revenue, and much of the overseas money inflow is directed to housing solutions in Ecuador

Currency: US dollar

Trading partners

The main trading partner is USA, which buys about 40 % of Ecuador’s exports

Asia, Europe and Latin America are important trading partners as well

Tourism continue to develop as a source of international income..

Language: Spanish

However, Ecuador is a very English-friendly country, with many Ecuadorians studying English as their second language.

BUILDING FOR THE MARKET

Promotora Valle Hermoso invests financial resources in housing projects in Quito, Ecuador. PVLH’s goal is to build real estate which offers comfort and space to new families who prefer a life style in a harmonious and peaceful environment

The housing concept with iron and concrete structure, firm and resistant, with guaranteed quality furnishings is combined with its location in modern urbanistic development areas full of facilities as well as the opportunity to enjoy wide green areas for family amusement

Housing inner areas have natural lighting resulting in energy savings and all the installations for modern technology equipment. They permit additional construction according to family needs and have privacy and guard service as they are inside an enclosed condominium.

PROJECTS

First project

"Los Rosales"

Promotora Valle Hermoso started its operations in 1995 by developing and building the homeowners community "Los Rosales", out of 37 town houses (1,200 square feet each) in the City of Calderon, which is about 10 minutes drive form Quito.

Second project

"Maria Isabel"

PVLH developed its next project in 2001; it was the community "Maria Isabel" comprised of three buildings with four 1,050 square feet apartments in each

"Maria Isabel" is located in the city of Quito, just five minutes from one of the largest Shopping Malls in the city.

Third project

"Maria Paz"

The third project, "Maria Paz" was started the same year and it was the development in the city of Sangolqui, 20 minutes drive from the city of Quito

The Sangolqui development is 46 townhouses ranging from 1,080 to 1,230 square feet, on lots ranging from 1,500 to 1,600 square feet.

Fourth project -- $2mm revenue expected

"Gerona Gardens"

PVLH is now starting the second stage of the project " Gerona Gardens", which involves construction of 42 independent living units (1087 square feet) for families

PVLH anticipates revenue of $2 million from the sale of Gerona Gardens’ units

Fifth project -- $2.5mm revenue expected

"La Guardia Towers"

By the end of 2006 PVLH expects the approval of construction of 6 residential buildings located in the Northern part of the capital city, Quito. This project involves construction of 48 residential apartments (807 square feet)

PVLH anticipates revenue of $2.5 million from the sale of units in the project

SALES AND MARKETING

Promotora Valle Hermoso sells its homes, through sales representatives and independent real estate brokers.

GROWTH PLAN

Residential units

Besides construction of 42 residential units in Gerona Gardens, and the project planned for the end of the year 2006 involving 48 apartments in the northern part of Quito

PVLH expects to close a sales contract for 12.4 acres in a picturesque valley "San Rafael", in the suburbs of the capital city Quito

The "San Rafael" project is expected to involve construction of 200 residential units for families, and PVLH believes an expected significant increase in cash flow will enable PVLH to reduce property delivery time, and increase future profits

Downtown Quito

In downtown Quito PVLH plans to build an office building and a smaller apartments building

The Quito projects are expected to be implemented in the second half of the year 2007 or at the end of the year.

Financing & construction profit margins Typical construction profits are in the range of 75% pretax in the Quito market, net pretax profits are typically in the 25% range after financing and carrying costs

PVLH believes its profit growth rate can accelerate significantly with additional financing

Therefore, the company intends to use both internal cash flow and external financing to fund additional projects, to increase both profits and cash flow

PVLH is also exploring providing direct financing to residential unit buyers

MANAGEMENT

Maria Fernanda Rosales has been holding the position of General Manager of Maria Paz Constructor since 1997. She is currently the CEO role of Promotora Valle Hermoso.

Maria Fernanda has extensive background in international management. She graduated with Honors from the prestigious University of San Fransisco in Quito, with a degree in Management & Communications in 1996.

She also has an advanced degree in management from the Ecuadorian branch of the Mexican University of Monterrey. Maria is Fluent in English, Spanish, French and Portuguese.

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