It must be the season - Quintess sent a letter to members 2 days ago and yesterday High Country Club sent out its first letter confirming completion of its annual audit and net asset test.

Both of these are great signs that the destination clubs are serious about the security of their members deposits.

The High Country Club letter included a link to a copy of the letter from their auditors, BKD, LLC, which said about the net asset test:

"we performed the following calculation to determine if the result of the calculation resulted in a positive amount:

a. Cash and marketable securities at December 31, 2006, plus,
b. Real estate assets at cost at December 31, 2006, if acquired within a 24 month period ending on December 31, 2006, and if acquired prior to a 24 month period ending on December 31, 2006, the current appraised value, minus,
c. Debt secured by real estate assets at December 31, 2006, minus,
d. Refundable membership deposits

As a result of the procedures applied, the calculation above resulted in a positive amount."

In other words the company has positive net assets, and so the assets cover the 80% of the members deposit which would be refunded to members should a member resign. The full letter from Christian Kirschner, CEO of High Country Club is included below.

High Country Club is having its audit and net asset test done on an annual basis. We'd like to see all the clubs move to a quarterly basis for the net asset test and reporting this to members - this will further strengthen the members security.

July 11, 2007



Dear High Country Club Member,

I am pleased to announce that High Country Club has completed its annual Net Asset Test.

Our Net Asset Test is designed to confirm that the Club's assets are sufficient to meet its obligations, including the Membership Deposit Obligation in accordance with the terms and conditions of the Club's Membership Agreement.

The Net Asset Test is calculated using:
Cash and cash equivalents, plus market value of real estate (if less than 24 months from the purchase date, cost may be used), plus deposits or other instruments for the acquisition of real estate, less secured debt = Net Assets Available to Satisfy Membership Deposit Obligations.

As of December 31, 2006, the Club's Net Assets Available to Satisfy Membership Deposit Obligations exceeds its Membership Deposit Obligation.

Further proof of the Club's compliance with the Net Asset Test is evidenced by the Agreed Upon Procedures report, which was prepared by its independent accountants, BKD, LLP.

The Net Asset Test will be performed by the club annually on December 31st, and future results of the Net Asset Test will be reported by April 30th of the following year.

High Country Club also completed the audit of its 2006 financial statements on which they received an unqualified opinion from its independent accountants, BKD, LLP.

Thank you again for your continued support of High Country Club.


Christian V. Kirschner
President & CEO
High Country Club Investments, LLC