SOURCE: Cal-Bay International, Inc.

June 11, 2007 09:30 ET

Cal-Bay International Announces Phase I of Revised Business Plan for 2007

CARLSBAD, CA--(Marketwire - June 11, 2007) - Cal-Bay International, Inc (PINKSHEETS: CBAY) announces Phase I of the Company's revised business plan for 2007.

A Cal-Bay spokesman announced the company has streamlined the corporate overhead and during this administrative re-structure the company will be relocating to a new Corporate facility in Orange County, California.

Cal-Bay's revised business plan includes plans to dispose of or sell off some of the larger more complex development properties within the company's portfolio. This way the company can focus on the development of some of the more immediate revenue bearing properties such as the Aspen Cove Resort in Panguitch, Utah. Cal-Bay can generate revenues in advance from the sale of premium luxury lakefront residential lots overlooking Panguitch, Lake. The revenues from the sale of lots will help the development of the lakefront lodge restructure project (also on Panguitch Lake), which is ultimately expected to create a significant profit and ongoing revenue stream for the company in addition to property appreciation. This plan will be significantly enhanced by the current re-financing of the properties the company plans to keep for development.

The disposition of some of the larger long-term development and investment properties which currently operate at a negative cash flow is expected to greatly assist in the turnaround of the company's cash flow and revenues for 2007/8.

The overall changes to the real estate portfolio is designed to trim overhead and create less of a negative cash flow for the company, even though such properties have a significant long-term profitability capability.

This redesigned business plan will become effective immediately with the disposition of some properties planned for July 2007.

Cal-Bay's property portfolio will still include properties and interests in: Florida, Texas, Utah, Nevada and California.

Cal-Bay is avidly pursuing the $14M Stonewal Estates 1st Trust Deed accounts receivable owed to the company in the California courts.

FORWARD-LOOKING SAFE HARBOR STATEMENT: To the extent that this release discusses any expectations concerning future plans, financial results or performance, such statements are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and are subject to substantial risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and reflect only management's belief and expectations based upon presently available information. These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties. The Company assumes no obligation to update any of the forward-looking statements in this release.

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