SOURCE: Phoenix Associates Land Syndicate

July 31, 2006 12:36 ET

Phoenix Associates Issues Message to Shareholders

NEW ORLEANS, LA -- (MARKET WIRE) -- July 31, 2006 -- Phoenix Associates Land Syndicate (PINKSHEETS: PBLS)(www.pbls.biz) today announced that Paul Alonzo, its President and CEO, issued the following message to the company's shareholders.

MESSAGE TO SHAREHOLDERS

I want to thank all of you for the overwhelming favorable comments that have been e-mailed to me as a response to my radio interview last Thursday. Phoenix will become fully transparent when the independent auditors finish their work. Phoenix has 22 companies and/or registered trade names that it operates under. At least seven of these are being cancelled. Many of these entities have different reporting dates and different states of origination. The job of putting all of these in order is overwhelming with three years of audits (2006 included) for each entity.

Whether good or bad, the news will be released, and as we take each step, Phoenix will become fully transparent. I am not going to predict a date or a time on the release of this information, only that it will be done. In 2001, the company was released from Chapter 11 (reorganization) and did $151,000 in gross revenue. By 2005, the company has changed considerably - - see unaudited consolidated financials for 2005 below. By the time of the final audit for 2006, I believe the company will be annualizing far greater numbers, even after considering the revenues that were lost due to Hurricane Katrina.

As a non-reporting pink sheet company, it is important that we maximize our time and efforts to add assets and income to Phoenix. At the same time we continue to work in a quiet period while we do our work. The reason for the quiet period was re-established Thursday while I was announcing the binding letter of intent to purchase Best Jets, Ltd. and other related companies in my teleconference. While I was finishing the interview, our stockholders began calling Best Jets and asking questions. The Best Jets group of companies had not even told their employees yet. This continuous business interference is outrageous and negatively works against the efforts of Phoenix. The purchase of another company that took someone 15 to 20 years to put together is a very delicate process. This company was their baby and their employees are their corporate family and they have a deep personal responsibility to that family. The time between the binding letter of intent and the closing contract is very critical for these and many other reasons. Stockholder interference during this time frame is ridiculous and works against all of our interests. Phoenix will remain in a quiet period.

Just as a reminder Phoenix has a buy back offer in place that reads as follows:

Phoenix shall repurchase up to one hundred million shares at a price of $0.03 per share of common stock, and all repurchases shall be effected in compliance with Rule 10b-18, promulgated under the Securities Exchange Act of 1934.

Should you wish to participate in this stock repurchase program please:

1. Send your stock certificate via "Certified -- Return Receipt Requested" mail to:

Phoenix Associates Land Syndicate
P.O. Box 1358
Covington, Louisiana 70434-1358
2. With your certificate send a letter, in your own words, stating that you are selling the stock back to Phoenix for $0.03 per share and that you request your payment on same within (30) days.

3. Sign the back of your certificate as the seller along with your letter.

4. Phoenix will handle the ensuing paperwork and pay you for your stock within thirty (30) days of the receipt of your letter and your signed certificate.

Phoenix is also pleased to announce that it has hired two directional drilling coordinators which will greatly enhance its drilling efforts and income at Ideal Energy Directional Drilling Inc.

We thank all of you for sticking with Phoenix. We are doing everything we can to enhance shareholder value and to make Phoenix a success story for all Phoenix supporters.

Phoenix Associates Land Syndicate, Inc.
Consolidated Statement of Operations for 2005
(Unaudited)

                                                                   2005
                                                                -----------

Revenues                                                        165,971,862

Costs and expenses
   Operating costs                                              156,771,118
   General and administrative                                     2,735,642
                                                                -----------
       Total costs and expenses                                 159,506,760

Operating income / (loss)                                         6,465,102
                                                                -----------

Other income / (loss)                                             6,230,000

Depreciation and amortization                                     2,896,203

Depletion                                                         2,701,000

Interest                                                             18,770
                                                                -----------

Net income / (loss) pre tax                                       7,079,129
                                                                -----------

Provision for income tax                                                  0

Net income / (loss)                                               7,079,129
                                                                ===========


Phoenix Associates Land Syndicate, Inc.
Consolidated Statement of Operations (Unaudited)

                                                                   at
                                                               12/31/2005
                                                               -----------
ASSETS
Current assets
   Cash and cash equivalents                                     6,646,963
   Accounts receivable - net                                     1,273,181
   Inventories                                                   9,525,500
                                                               -----------
      Total current assets                                      17,445,644

Other assets
   Investment                                                    9,633,375
   Prepaid expenses                                                102,296
   Goodwill                                                      9,632,540
   Oil reserves                                                          0
   Land lease(s)                                                 1,401,265
                                                               -----------
      Total other assets                                        20,769,476

Fixed assets
   Buildings                                                       728,000
   Land                                                            225,000
   Building improvements                                            25,275
   Machinery and equipment                                       2,309,398
   Furniture & fixtures                                            157,965
   Leasehold improvements                                       18,527,000
   Mineral reserves                                             47,550,000
   Vehicles                                                        275,531
   Less: Accum depletion                                       (13,314,000)
   Less: Accum depreciation                                     (6,225,277)
                                                               -----------
      Total fixed assets                                        50,258,892

TOTAL ASSETS                                                    88,474,012
                                                               ===========

LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities
   Accounts payable                                              5,965,274
   Note payable - short term                                       500,000
   Accrued expenses                                              1,499,365
                                                               -----------
      Total current liabilities                                  7,964,639

Long-term liabilities                                                2,191

Long-term debt                                                           0

Shareholders' equity
   Stock                                                         9,499,384
   Paid in capital                                              61,888,642
   Unrealized market gain / (loss)                                 (27,363)
   Retained earnings                                             9,146,519
                                                               -----------
      Total shareholders' equity                                80,507,182

TOTAL LIABILITIES & SHAREHODDERS' EQUITY                        88,474,012
                                                               ===========

About Phoenix Associates Land Syndicate (PBLS)

Phoenix Associates Land Syndicate (PBLS) is a public holding company, with hundreds of stockholders, that has purchased motivated companies in order to enhance its assets and income basis. Since 1978, PBLS has developed assets and/or interests in sand & gravel, soil products, land development, oil and natural gas, commodity brokering, plumbing, trucking, contract hauling, construction, swimming pool construction and construction related industries. For more information, visit www.pbls.biz

Forward-Looking Statements

This press release contains statements that are "forward looking" and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. Generally, the words "expect," "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward-looking statements. Statements in this press release regarding the Company's business or proposed business, which are not historical facts, are "forward-looking" statements that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.

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