Dear Victims, Creditors, and Interested Parties:

After 2 ½ years we are finally in a position to make our first distribution. 

Shortly you will be receiving a distribution check in the amount of 36% of your allowed claim. Although we had initially anticipated 34%, we have been able to achieve a slightly higher distribution.  I expect to make the distribution on December 22.

Please note: This will not be the last distribution and represents only the distribution from the bankruptcy estate.

Although I will be physically making the distribution to the Class Action participants, the Class Action still has some work to do in order to be in a position to provide me with distribution instructions.  It is now anticipated that the Wave I distribution in that matter, which is anticipated to be 9%, will not be made until February of 2010.

We still continue to pursue litigation potentials and negotiations with a number of the professionals, financial institutions, and other lenders.  It would premature to speculate as to the results of such efforts, if any, or the timing thereof.

On behalf of my entire team, I would like to thank the vast majority of victims and creditors for their patience, understanding, and the gratitude that has been expressed.

Best regards,

THE 1031 DEBTORS LIQUIDATION TRUST

GerardA.McHale,Jr.

Gerard A. McHale, Jr., P.A.

Trustee