Cal-Bay International Inc (CBYI)

[mastaflash]

ATTENTION!!!...just in from Dale:

Thank You

The legal issues are now in the hands of our new laegal council in CA. The majority of the lawsuits were unfounded and constituted illegal process on a vacated office. The company is moving forward with caution on the acquistion side, by acquiring under lease to purchase options until the legal issues are resolved.

The shares are stock that is already in the system our take is there are some significant short positions by MM's as we saw major covering last week on over 2 Billion shares in one day. We feel there is a large naked short position but they are covering daily as we see reduced volume.

MR

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----- Original Message -----
From: "xxxxxxxxx" <[e-mail]>
To: [e-mail]
Subject: CBAY
Date: Wed, 3 Sep 2008 10:53:38 -0700

Dale,

Great to see CBAY get back in business. I'm wondering, though, about current assets and legal troubles that CBAY may be involved with. Are you able to shed any light on that? Also, given the trading volume of late, I was wondering where all the shares are coming from. One would assume it is not the company doing the selling....any thoughts on where those shares are coming from?

Thanks for your time,
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