LORETO BAY, BAJA CALIFORNIA SUR, MEXICO - (April 19, 2007) "“ The Loreto Bay Company announced today that The Villages of Loreto Bay has achieved several major milestones in construction waste management, marine conservation, wind energy and estuary restoration. The authentic seaside town in Baja California Sur continues to set the tone for sustainable development and environmental responsibility in the region.

As of Earth Day 2007, Loreto Bay has progressed in a number of its environmental initiatives including 74 percent of construction waste being recycled. The $3 billion development, which will create a series of seaside villages of approximately 6,000 homes built on 8,000 acres along the Sea of Cortés near the historic fishing village of Loreto, serves as a model of sustainable development practices in real estate.

"Sustainable development is a reality at Loreto Bay,'" said Jim Grogan, president and CEO of Loreto Bay Company. "We'll produce more energy from renewable sources than we consume; we'll harvest more potable water than we use; and there will be more biodiversity, biomass and habitat than existed when we started. We're proud to set this standard and hope that future developers in Baja California Sur will follow suit."

Recent highlights of Loreto Bay's achievements in environmental sustainability include the following:

Seventy-four percent of construction waste being recycled. Loreto Bay has implemented multiple streams of recycling. Waste is separated, stored temporarily and then recycled. The development has agreements with companies in La Paz, Cuidad Constitution, Tijuana, Mexicali and in Loreto to recycle and/or re-use construction waste materials including plastic, wood, Styrofoam, waste steel, cardboard and paper, cement and lime sacks, rubble, aluminum cans, and Perform Wall waste. Household waste generated by new homeowners is similarly recycled.

Grants awarded to support marine conservation. Loreto Bay is a steward of the incredible marine environment situated on its shores and is taking steps to ensure its conservation. In 2006, the Loreto Bay Foundation awarded more than $230,000 in grants for the purpose of supporting the health of the marine park through protection, policing, education and research. Loreto Bay is also continuing work with marine biologists from UCLA San Diego and the University of La Paz to support a study for mapping sea turtle foraging and nursing hotspots in an effort to eventually implement a viable sea turtle watching eco-tourism program.

Estuary restoration underway with creation of largest mangrove nursery in Mexico. Loreto Bay plans to create approximately 5 miles of restored wetlands estuary channels involving 25 hectares of mangroves and companion saline plants. Eleven thousand red mangrove seedlings, which are critical sources of nutrients for marine life, have been moved from Loreto Bay's agriculture center nursery and are thriving in a temporary transition nursery beside the Punto Nopolo estuary. When mature, the mangroves will be planted along a series of natural and constructed estuaries, which create a rich environment for sea life.

Wind energy steps closer to fruition. All electricity at Loreto Bay will be generated by wind. Relative to greenhouse gases and global warming, Loreto Bay's wind utility will offset approximately 66,000 tons of carbon emissions annually, which is the equivalent produced by 11,600 cars. Loreto Bay has determined a location for an initial 20 megawatt wind farm for which construction of roads and foundations is expected to begin in fall 2007. Wind farm operation is anticipated for fall 2008.

Offsetting air travel emissions. In 2006, Loreto Bay's corporate travel was 100 percent carbon neutral. The company offset more than 200 tons of CO2 emissions, 165 tons of which was for employee air travel, through contributions to the Climate Trust.

Staying true to its environmental sensibilities, Loreto Bay donates one percent of all sales to the Loreto Bay Foundation, an independent foundation that supports community NGOs in their ecological and social missions. To date, sales are in excess of $315 million, equating to over $3 million that the Foundation will receive incrementally as home payments are received by the company. The total amount received thus far is $995,119.30. Grants awarded in 2006 exceeded $600,000.

About The Loreto Bay Company:
Loreto Bay Company, headquartered in Scottsdale, Arizona, is developing The Villages of Loreto Bay, a series of seaside villages in walkable neighborhoods built near the historic fishing village of Loreto, Baja California Sur, Mexico. The Villages of Loreto Bay will be a showcase for sustainable development practices. Founded in 2003, the company is led by Chairman David Butterfield, president and CEO Jim Grogan and CFO Tom Nolan. For more news and information, visit www.loretobay.com.

Loreto Bay Company

Loreto Bay Company

Loreto Bay Company, headquartered in Scottsdale, Arizona, is developing The Villages of Loreto Bay, a series of seaside villages in walkable neighborhoods built near the historic fishing village of Loreto, Baja California Sur, Mexico. The Villages of Loreto Bay will be a showcase for sustainable development practices. Founded in 2003, the company is led by Chairman David Butterfield, President and CEO Jim Grogan and CFO Tom Nolan.

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