James Monroe Capital Corp (JMON)

[jgbuz]

Press Release Source: Commonwealth American Financial Group


James Monroe Capital Resort Inspection: 'Go'
Wednesday June 28, 8:30 am ET


CHICAGO--(BUSINESS WIRE)--June 28, 2006--James Monroe Capital Corporation (Pink Sheets:JMCP - News) has completed due diligence on a property in Guanacosta, Costa Rica, for a timeshare resort.

The effort in Guanacosta was subject to a property inspection, and after having inspected the property, JMCP execs say the project is a go. The company reports that some other oceanfront timeshare resorts in Guanacosta were sold out. One exec said, "We couldn't get a tour while we were there. This is good news for a company considering building a timeshare resort in the area. We also found that the frenzy of development on the West coast of Costa Rica is largely American, and the new international airport (LIR) already has more and more flights per day coming in to the growing area." The property is in an undisclosed location on the Pacific coastline.

JMCP also brought in independent timeshare experts from the Cayman Islands for an opinion. They said, "It is secluded and breathtaking, with hills, trees, sand, and big ocean views everywhere. This is the type of development that ought to have a helicopter to go with its elegant front gates and its high-end clientele. The fact that other timeshare resorts were sold out really impressed us."

Total costs for the project have not been finalized, but the attorney for the project commented that total costs to build may be in the neighborhood of $40,000,000, plus land. JMCP is presently slated to own 9% of the project, which it has conservatively projected to net the company $5,000,000 over a two year period. Low cost local labor help keep the costs down, and the deal is to be aggressively leveraged. According to collected data about comparable sales of condos in the area, the entire completed development would be worth around $90,000,000 if sold as condos--however, timeshare is preferred, which is more profitable and provides residual income from maintenance fees.

Negotiations have stepped up to the next level, and a final word on the project is expected within the next 30 days.

This press release does not constitute an offer of any securities for sale. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the company's limited operating history and history of losses, the inability to successfully obtain further funding, the inability to raise capital on terms acceptable to the company, the inability to compete effectively in the marketplace, the inability to complete the proposed acquisition and such other risks that could cause the actual results to differ materially from those contained in the company's projections or forward-looking statements. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.



Contact:
James Monroe Capital
Chris McGovern, 847-418-3848

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Source: Commonwealth American Financial Group