SOURCE: Phoenix Associates Land Syndicate

October 26, 2006 12:11 ET

Phoenix Comments on Murphy Sand & Gravel Legal Activities

MADISONVILLE, LA -- (MARKET WIRE) -- October 26, 2006 -- Phoenix Associates Land Syndicate (PINKSHEETS: PBLS), a holding company with assets and/or interests in aviation, sand & gravel, soil products, land development, oil and natural gas, commodity brokering, trucking, contract hauling, construction, swimming pool construction and construction related industries, today released the following comments relating to its Murphy Sand & Gravel (MS&G) business unit.

Phoenix has become aware of a great deal of concern being expressed by many of its shareholders about the Phoenix MS&G mining operation in Pearl River, Louisiana. MS&G is located on Honey Island and is accessed via bridges from the north and the south. The operation has been, but is not currently a profit center for Phoenix since the Louisiana Department of Transportation has severely curtailed the truck load limits that can be carried over the bridges that access Honey Island. These bridges received quick but not permanent repairs after Hurricane Katrina and are not as yet recertified to carry the weight of fully loaded trucks. Now, more than ever the operation has limitations.

Phoenix is presently taking down old and dilapidated equipment at MS&G and beginning to install new and much more advanced equipment. Phoenix expects to begin operations with this equipment in late 2006 to early 2007.

In several news releases and most recently the release on September 26, 2006, Phoenix has tried to keep everyone informed concerning the ongoing litigations with this asset. The first piece of litigation relating to MS&G involves a bank in Picayune and a manufacturer in Picayune, Mississippi. The bank seized all of the MS&G equipment and completely shut down the operation on January 13, 2004. Phoenix continued to sell material it had previously mined and continued to develop the property to expand its mining operation. Phoenix also went to court to regain possession of its equipment. Phoenix was not sued in the litigation and Phoenix was not allowed to argue its points under the Louisiana Uniform Commercial Code which Phoenix believed should have protected its equipment from the bank and its unjustified claim against the equipment Phoenix purchased from the Mississippi manufacturer. Phoenix lost in the lower court but won twice in the Court of Appeals. Phoenix and the bank are now before the Supreme Court of the State of Louisiana and the Company should know the outcome in early 2007. All of the law the Company's attorneys have submitted to the court appear to indicate Phoenix should prevail. If Phoenix does prevail it will seek millions of dollars of damages from the bank and the manufacturer.

In the second piece of litigation, Phoenix sued the lessor of the property for continuous and torturous business interference. The lessor has used a number of attorneys in this case and Phoenix is now in the interrogatory and deposition stage. Phoenix will use a jury trial but this process has been delayed because of a third piece of litigation that was initiated several months ago. If successful in the business interference suit Phoenix would expect to receive several million dollars in damages when this lawsuit is resumed and finalized.

The third piece of litigation involves the lessor suing Phoenix for signing operational agreements to further develop the property. Phoenix developed these agreements when it lost all of its equipment to the Mississippi bank. The lower court determined that these operational agreements were sub-leases and were a material breach of the lease. Phoenix used a major New Orleans law firm to write the contracts but the court ruled that the contracts were a violation of the lease and the Judge cancelled the entire lease. George Denegre, Esq. of Liskow and Lewis believed that the contracts were a violation of the lease but our other attorneys believed we should have prevailed. All attorneys believe that the ruling was excessive with the cancellation of the lease. Phoenix has posted its bond and filed its appeal and expects to continue to operate for at least the next eighteen months while the appeal is litigated.

Phoenix has extremely strong case law and rulings by the Court of Appeals in other cases that indicate it should prevail and should be able to continue operations until 2023. Because of this strong belief, Phoenix is continuing to invest millions into the improvement of the MS&G mining operations regardless of the court's ruling. These cases will not affect the continued advancement of the interests of Phoenix and its stockholders regardless of their final outcomes.

About Phoenix Associates Land Syndicate (PBLS)

Phoenix Associates Land Syndicate (PBLS) is a public holding company, with thousands 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 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. For more information, visit

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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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