Andros Isle Development Cuts Deal to Purchase 2,700-acre Resort Project Near La Romana

The Board of Directors of Andros Isle Development Corporation announces that Andros Isle Development Ltd., its wholly owned Bahamian subsidiary, has signed an agreement to acquire a 2,700-plus-acre tract on property near the city of La Romana, in the Dominican Republic.

This property was originally master-planned as a luxury resort community that was to consist of 1,500 waterfront and golf course villas, 2,400 bungalows, 600 luxury apartments, 3 golf courses, as well as a 300 berth marina. Andros plans to start work revising this plan immediately.

Andros Isle Development Ltd. expects to have the Definitive Purchase agreement signed on or before February 9. It is anticipated that this transaction will close in the second quarter of 2007.

The Company plans to use the proceeds from the placement of the 10 million shares of Series A Cumulative Preferred Shares that its Board of Directors approved in July of this year to partially fund this acquisition.

Upon completion of this transaction, the Company’s net asset base will increase by more than $80 million, or by more than $5 per fully diluted share based on independent valuations of the value of the property being acquired.