Suite 3, 610 Murray Street West Perth Western Australia 6005...

Suite 3, 610 Murray Street
West Perth Western Australia 6005

Tel: +618 9321 3664
Fax: +618 9322 6887
[email protected]
8 June 2006



Australian Stock Exchange
Company Announcements Office
Exchange Centre
Level 4, 20 Bridge Street
Sydney NSW 2000


Dear Sir

SALE OF JIVA KATA INVESTMENT

Orchid is pleased to announce that its 23.2% owned investee, Jiva Kata Resort Company Limited, has disposed
of its hotel property in Phuket, Thailand. Jiva has now received the first instalment of the sale price, of which
Orchid's share is ThB 17,632,000 (approx A$608,000).

Based on achieving certain milestones relating to enlarging the hotel, Orchid will receive further amounts
totalling ThB 23,200,000 (approx A$800,000) over the course of the next sixteen months. The book value of the
investment in Jiva is A$500,000.

The proceeds from the sale will be utilised as part of Orchid's new strategy of participating in pre-IPO's in various
Asian markets. It is also anticipated that most of the old non-core assets will be sold over the coming months in
order to focus on the Company's new investment strategy.


Yours faithfully

Julian Sandt
Chief Executive Officer
Orchid Capital Limited



ASX CODE: ORC WKN: 924249 ABN: 30 073 099 171