SOURCE: Phoenix Associates Land Syndicate

November 20, 2007 06:45 ET

Phoenix Associates Wins Louisiana Supreme Court Decision

On November 16, 2007 the Supreme Court of Louisiana Awarded a Decision in Favor of Phoenix against the First National Bank of Picayune; Case Relates to Improper Seizure of Equipment at Murphy Sand & Gravel in 2004

MADISONVILLE, LA--(Marketwire - November 20, 2007) - Phoenix Associates Land Syndicate (Phoenix) (PINKSHEETS: PBLS) announced that the Supreme Court of Louisiana awarded the Company a decision against the First National Bank of Picayune related to its seizure of dredge equipment in 2004 at the Company's sand and gravel mine in Pearl River, Louisiana.

To our Shareholders:

On Friday, November 16, 2007, Phoenix was awarded a Supreme Court decision against the First National Bank of Picayune (FNB), for the improper seizure of its equipment in early January 2004. This decision is historical and monumental for Phoenix and will be used in the future as a model in law schools throughout the country when discussing the Uniform Commercial Code (UCC).

This was a tough case because Phoenix was not sued and it was not the defendant or the plaintiff, but it was in possession of the equipment, had paid for the equipment, and had improved the equipment with hundreds of thousands of dollars of parts and labor to put it in operable condition. Phoenix had to argue many technical issues to become a litigant in the case and to prove that it was entitled to a favorable decision which after receiving same, now allows Phoenix to litigate for its damages. The other side now has several days to appeal, but the Supreme Court filed a very definitive 25 page decision and would not likely overturn their own decision. When the process is over in about 90-120 days, Phoenix will then begin to seek damages against the bank and others which could be enormous.

Although the actions of FNB were extraordinarily damaging and may eventually cost Phoenix its lease, Phoenix should easily prevail in the damages portion of the litigation and should recover significant compensation. After all, the reason Phoenix may lose the lease is because of the illegal equipment seizure which resulted in Phoenix being forced to sign operational contracts which to this date have been found improper by the courts. Phoenix is now going to the Supreme Court to argue the operational contract issue.

Phoenix views this important Supreme Court decision as the corner stone of its upcoming litigation for damages against FNB and against all parties that have interfered with its business interests. This case was Phoenix's hardest case and the findings should fuel the upcoming cases in the next few years with regard to the sand and gravel mine and other issues. Phoenix has documented proof of damages, false and slanderous accusations against its business interests and its principals, and additional proof of tortuous business interference. Although our upcoming cases for damages will not be easy, this case will help defuse and disprove many issues that have been used against Phoenix when combined with our additional proof of malicious, unwarranted and unprovable claims against Phoenix.

Phoenix has turned the corner after being hit with what has been like a second Hurricane Katrina ("the perfect storm") when you consider these court cases, office personnel problems and other recent damaging activities. Phoenix will remain an effective and substantial company well into the future.

Best regards to all of our shareholders.

Paul Alonzo, CEO and President
Phoenix Associates Land Syndicate

About Phoenix Associates

Phoenix Associates Land Syndicate is a holding company with assets in aviation, sand & gravel, soil products, land development, oil and natural gas, commodity brokering, plumbing, trucking, contract hauling, construction, swimming pool construction and construction related industries.

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