HOLIDAY ISLE EMERGES FROM BANKRUPTCY

November 3, 2009

Holiday Isle LLC, the developer of Holiday Isle Condominium on Dauphin Island, Alabama, filed for Chapter 11 Bankruptcy protection October 23, 2008. This action was taken to stay a foreclosure sale scheduled for the following morning that was initiated by RBC Bank and Sovereign Bank, the construction lenders for the condominium project.

Located directly on the Gulf of Mexico, Holiday Isle is a seven story luxury condominium containing 144 living units and numerous amenities, including indoor and outdoor pools, covered parking and an elevated fitness center overlooking the beach. The building was completed in 2007 and is the only modern, mid rise, concrete and steel condominium on the Island.

Many of the Holiday Isle condominium units closed following completion, which repaid a majority of the loan. However, some original buyers of units failed to close on their purchases. Had these buyers closed as scheduled, the loan to RBC and Sovereign would have been completely repaid in 2007. The failures to close brought about the foreclosure, which triggered the Chapter 11 filing.

Today, the Bankruptcy court confirmed a business plan submitted by Holiday Isle, allowing it to emerge from bankruptcy and to continue its business operations. This plan provides for the sale of the remaining units at Holiday Isle over a two and one-half year period of time.

Holiday Isle anticipates business as usual in the marketing of its remaining condominium units. Current economic conditions have slowed sales. However, recent sales have been to seasoned investors and most of those closings have been all cash. These buyers have indicated long term investment goals, including rental income and appreciation in value. ACP Real Estate provides full on site rental management services to many owners who rent their units.

During the first several months of its plan, Holiday Isle anticipates selling two or more units each month, rising to three or more units per month during the balance of the plan. Prices during the early months will be the lowest available and will rise over time.

The Holiday Isle Condominium Owners Association, which is composed of the owners of all of the units, is managed by a board of directors composed of a combination of developer appointed and elected independent members. The Association is in excellent financial shape and was not affected by the Chapter 11 filing.