Fortune Announces Planned Capital Structure Reorganization and the Signing of a Letter of Intent to Acquire Andros Isle Development Ltd

Business Wire,  April 14, 2005  

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LAS VEGAS -- Fortune Real Estate Development Corporation (Pink Sheets:FRDJ) comments on a planned 10 for 1 reverse stock split and the signing of a "Letter of Intent" to acquire 100% of Andros Isle Development Ltd.

Delroy Cowan, Chairman and CEO of FRDJ, announced today that Fortune's Board of Directors and majority shareholders have approved a 10 for 1 reverse stock split that will be effective, April 15, 2005. Mr. Cowan stated, "This restructure of the company's capital structure will give us the opportunity to enhance shareholder value through the acquisition of other companies in the real estate development space. Our intention was to seek out opportunities whereby we could do a transaction with a player that was focusing on large-scale real estate development projects. This capital structure reorganization has allowed us to do that."

Fortune has signed a "Letter of Intent" to acquire 100% of Andros Isle Development Ltd., a Nassau, Bahamas based real development corporation. Andros holds the exclusive-irrevocable rights to develop a $250M luxury residential and resort community on a 247 acres tract of beachfront property that has a $49M dollar appraised value. Simon Sands, President of Andros Isle Development Ltd. stated, "It is the intention of both parties to move to close the transaction expeditiously. We are hopeful that we will be able to close this transaction today, as the majority shareholders in both companies have reached an agreement to move forward."

About Fortune Real Estate Development Corporation

Fortune Real Estate Development Corporation specializes in converting luxury hotels into Condotels, a concept that has gained popularity in many international vacation resorts. It involves the selling of hotel rooms and suites to individual purchasers, who wish to have ownership as a Condotel with the option to occupy the Condotel as well as to generate income from the unit which is an alternative method that is outperforming the time-share condominiums in the United States. Purchase of timeshares in the United States falls between $16,000 and $25,000, however the purchaser is restricted to one or two weeks of usage. The reason is that condo rentals are available in Kissimmee for $395.00 to $1,500 per week, depending on their size and amenities.

FRDJ criteria for a hotel for conversion to a Condotel must be a luxury hotel, located in a tourist destination area. By converting to a Condotel, FRDJ successfully reduces the operating costs significantly, while ensuring that the guest amenities and facilities will continue to operate at a very high standard. This Condotel business model acts as a full service hotel with a concierge, maid service, pools, fitness centers, 2 restaurants and tennis courts operated by the hotel and available for the guests. Limited Down Time On Revenue during the transition from hotel to Condotel, FRDJ will rent the unsold units as regular hotel rooms.

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