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Dionísio Pestana — Presidente do Grupo Pestana

Dionísio Pestana — President of the Pestana Group

It is with great pleasure that I present you the 2nd Sustainability Report of the Pestana Group.

According to the current socio-economic context of Portugal and Europe, it becomes increasingly important to uphold the principles of sustainable development, so this remains one of the Group's strategic priorities.

During these last two years we have consolidated our Planet Guest program, and we have become true Guests of our Planet. With great pride, and thanks to a group of committed and motivated people, with thoughtful steps, in the period 2010-2011 we have improved our line of work, allowing us to improve our decisions and actions in all aspects of Sustainability.

Regarding the commitment to develop a more sustainable activity, we reached a total of 32 out of 35 goals that we had set
ourselves.

In the environmental area I want to highlight in 2011, the appointment of Sustainability Ambassadors in all units in Portugal. This initiative contributed to 4% savings in the total energy consumption and water and to meet the target of 5% reduction in the electricity consumption of Pousadas de Portugal.

We continued to invest in safety, innovation and quality of our services, involving all employees and customers with respect for the communities where we operate. We were able to maintain good results as regards occupancy rates and even have been steadily rising the number of clients (+9%) and room-nights (+21%) in our hotels.

In 2011, the Campaign "Thanks for Helping", in all hotels in Portugal, totalized a value of €84.084, donated in full to local institutions
of social solidarity, therefore strengthening the bond to the surrounding communities which are essential for the success of our
business.

We have created a Code of Ethics with suppliers in order to ensure our joint customers, products and services manufactured or provided under conditions that undoubtedly respect the human rights and the planet. This also enables an upper degree of confidence in our chain of value.

Restoring and preserving history and culture, remains a priority to the Group, mainly through the Pousadas of Portugal. During these two years many initiatives related to Portuguese gastronomy allowed our guests in various parts of the world to get acquainted with known aspects of the Portuguese culture.

The Pestana Group is about to celebrate 40 years as an Organization committed to Sustainable Development. For now, I invite you to learn more about the projects of our Group through this 2 nd Sustainability Report.

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