NEW PROJECTS

Citadel continues to develop and assess the feasibility of investing in new projects to enhance its portfolio of businesses. Citadel has provided initial start-up capital to a new company, Asia Overnight Express Corporation, projected to be an intra-Asian air cargo carrier, to be based at the former American base at Clark Field. The company has received designation from the Philippine Government as an official flag carrier to Hong Kong, Singapore, Thailand, the United States, Japan, China, Taiwan, Brunei, Indonesia and Malaysia. Asia Overnight intends to serve various international freight consolidators, including UPS and TNT, as well as carry general cargo sourced through various forwarders.

Citadel is in the process of acquiring a majority stake in Micronesia Telecommunications Corporation (MTC), located in the Commonwealth of Northern Marianas Islands. MTC is a full service telecom company providing a broad range of services, including fixed line, wireless, and data. Citadel expects final approval on its investment from the Federal communications Commission (FCC) by the fourth quarter of 2003.

Citadel is also evaluating further prospects in the telecommunications industry, local port operations and management, crew manning for cargo and passenger vessels and other infrastructure projects.