Nov 7th 2007, 10:55 LNL L&L Financial Services
by Lindsay Druart

LNL Halted Pending Shareholder Discussion

Today, I sat down to do the financial report and I personally do not like what I see. Due to the limitations in the system and the timeliness of implementation in key components, the ROI has been slow. Our products are innovative but the previous runs on other banks have caused a few of our key marketing opportunities to run sour as well. While the bank still maintains 30% liquidity and will probably go back up to 65-85% liquidity in the next 30-60 days, I am not secure that the bank will be able to maintain itself. Lowering the interest rate helped a lot but the interest gained on some of our investments has recently dropped and one of our funds in undergoing restructuring at a November 15th shareholder meeting in which we have a proxy.

As a result, I have asked that trading be halted while I discuss with shareholders what they would like to see. I am rather proactive and like to address issues before they become too far gone to be repairable. I have a few things in mind but it is ultimately up to shareholders. This is open for discussion and I would like to come to a resolution before trading is resumed. Here are my ideas.

1. Maintain as is and lower interest rates until profit margin increases and the banking industry of SL solidifies itself a bit more. Personally, this could be a band-aid and I believe the U.S. economy is about to face a recession which will affect our RL investments. I could be jumping the gun a bit with all of this but I am just not seeing the profit margin I projected.
2. Sell LLBT to another bank. L&L Corporation will maintain all software and rights with the understanding that the bank could possibly reopen in the future without the issue it had previous and be in a better position than the months of waiting we went through to get where we are now. This would mean customers would go through the process of conversion to another banking system and shareholders paid a final dividend on the sale.
3. Merge LLBT with LLRS. LLRS just had a record quarter with profits (minus the 800k spent on sims on the last day of the quarter) and does well in SL and just launched in There and will launch in Red Light Center in the next 90 days. LLRS has a budgeted dividend of .10/share through Q4 and typically does better. The land sales would be the backbone for the bank as well as profits made in other metaverses. LLBT shareholders would get 3/1 share conversion to LLRS and would trade on WSE with founder and alt shares being retired. LLBT customers would not see any change on the operation end as LLBT would run as a division of LLRS.

I am posting this notice in my blog for discussion at http://lindsaydruart.blogspot.com so please check things there to give insight on what you would like to see as a shareholder. I am also interested in the opinions of non-shareholders as long as they are volatile and noteworthy. Keep in mind, the bank is NO WHERE NEAR bankrupt. I simply don’t want a potential problem to turn into closed ATMs and scandals. I prefer to act while I still can than wait something out. I pride myself on dealing with sure things and right now, I am not sure so I am listening to shareholders, customers, and members of the market. I can have all the logic in the world but more brains on the same thought works best.

Had LLBT started under different circumstances and gotten a fair run, I would not feel the way I do now because I would have had more control over operations from the beginning. Nevertheless, things are running smooth but they could have been much better. Feel free to post on the blog and as we come to a conclusion, trading will be resumed at that time. Thank you for your support.

Sincerely,

Lindsay Druart