Skaha Beach Club & Spa … Press Release… May 6, 2008

“With deep regret, My Second Home Developments Ltd. announces today that our plans to construct Skaha Beach Club & Spa have been terminated. This, in effect, is the end of the project. Unfortunately, we have succumbed to the long tentacles of the worldwide sub-prime mortgage crisis. Since last summer, when the financing markets began to recoil with all the billion dollar write-downs, we have fought an uphill battle to present our project to financial institutions, hedge funds, private investors and financing groups, all to no avail,” announced CEO, Melvin Reeves.

“We can no longer delay what is our fate. We simply cannot proceed. This is the right thing to do under our current circumstances. We have exhausted all of our sources for financing. After having worked on this project for seven years, achieving unprecedented presales in the South Okanagan, and having spent about $21 million in the process, it is with a heavy heart that we make this announcement,” cited Reeves.

“This is a sad day for Skaha Beach Club & Spa, our loyal and positive team, pre-sale owners, all related business participants and, lastly, the City of Penticton. Having to let go of a seven-year project which held so much promise for the economic prosperity for the Penticton community is painful, indeed. This is also one of the harsh realities of the downside of the development business,” stated Reeves.

“I want to thank everyone involved in this project for their unwavering support, including the current City of Penticton Mayor, Council and the entire staff, and for those in the community who wished to see the project through to its fruition. Our demise is clearly a result of market forces beyond our control. Moving forward, we have instructed the real estate brokerage company holding the insured deposits to refund all the pre-sale owners’ deposits, along with accruing interest. During this period, our investment group will be meeting to determine the re-distribution of our assets and the future of the property. Until those meetings are concluded that’s all that can be announced for now,” continued Reeves.

#1600, 999 WEST HASTINGS STREET, PO BOX 9, VANCOUVER, BC V6C 2W2