Greetings from a cold & wet Cape Town!

We have a number of interesting things on the go that I am sure that you will enjoy reading about, which we will highlight later in this newsletter.

New Addition

We are pleased to welcome Kelly Jennings aboard. Kelly (left) has taken over from Wendy as Financial Manager. Kelly is not entirely new to Admiral Yachts, as she worked for the companys' auditors for several years.

Wendy has now been assigned to Admiral Group Special Projects, which includes managing Admirals' new charter base and various other projects that we have on the go.

Admiral Charter

We are extremely pleased to announce that Admiral Yachts have recently launched our new charter base in Madagascar. This destination was chosen due to its incredible natural flora and fauna as well as the governments' proactive approach to investment. After some careful consideration, research and an extended visit to the island we decided to set up our base in Nose Bé.
The Admiral Explorer, which recently received a revamp, has already started receiving bookings. We would like to use this opportunity to welcome aboard Bert (left), our charter boat captain.

This spice island has been caught in a time-warp and is very much reminiscent of the Caribbean of three decades ago and in fact their similarities are quite remarkable with Madagascar having its fair share of pirates as well. The locals are still very subsistent on farming and fishing. They are friendly and eagerly welcome foreigners.

The pristine beaches and many anchorages make this a truly worthwhile sailing destination. To see more about Madagascar and Admiral Charters, visit www.admiralcharters.co.za

Admiral Power

As world markets continue to change direction on a constant basis the need to adapt to these markets has been an ever increasing challenge. In order for Admiral Yachts to stay abreast of these trends, we are very pleased to announce the purchase of the entire asset base of Argo Boats. We welcome aboard Alan Geeling to head this division.

This now gives Admiral the opportunity to enter the fast growing power boat market. We will be offering a 21ft catamaran as well as 45ft catamaran. Both of these boats are based on the latest foil assisted technology that greatly reduces the drag of the boat through the water and increased fuel efficiency and boat speed. We intend adding a 32ft boat to this range as well.

USA Office

Over recent years we have noticed a marked decrease in enquiries received through our Fort Lauderdale office, as all clients liaise directly with the factory. In view of this we have decided not to renew our office lease and therefore wish Kent & Belinda well for their future undertakings.

Pricing

The continued increases in petroleum prices have dramatically affected the cost of resins and other petroleum and chemical based products. This has already affected the cost of building boats which will ultimately see a very sharp increase in the price of boats over the next few months.

July 2008

Improvements

On the sailing front, there have also been a number of production line changes. These include the introduction of modules to the various models. One of the benefits is a substantial reduction in weight of the boat. The inclusion of modules has also reduced the amount of wood cladding in the boat, which is another substantial weight saving factor as well as alleviating the risk of water damage to panels and warping. This now gives the client the ability to easily clean surfaces.

In addition to this we have introduced a new surface to the galley and counter areas. This product is manufactured in-house and alleviates the need for any counter top joins, something which a number of clients have been unhappy with in the past. This product also greatly reduces the weight of the tops and is also available in a wide variety of colours.

Over the past few months, we have had a number of clients visiting us at our factory and we would like to thank all of them for their valuable input, suggestions and recommendations.

Warranties

For those of you who are currently sailing and enjoying our boats please be advised that it is important that you adhere to the correct procedures when having a warranty issue attended to. As always, we try to assist you as quickly as possible when rectifying any warranty work. The following procedure is a guideline to effective warranty repairs:

For equipment related claims:

• Ensure that your warranty cards have been completed and sent off to the relevant supplier/manufacturer
• Contact the manufacturer directly quoting your warranty card serial number
• Should you not receive the attention you deserve, contact the factory

For structural related claims (this includes leaks, cracks, delamination etc)

• Contact the factory directly in order that we may make the necessary arrangements to have the problem evaluated and rectified.