Aug 12th 2012, 09:45 YSL Yanko Sella Land Company
by yanko Sella

Finalcial Reports

Dear YSL Shareholders:

We want to inform our shareholders that in the last three months (May, June, July 2012), we noticed a sharp decline in the rental market because of the general financial situation in Europe. Our rental market is 80% based on Italian clients and Italy already seriously affected by the global crisis. Because of this, we experienced a decline in requests for our rental lands.

As a result, we had several renters of lots and sims that left without paying what they owed. In addition, there have been frequent network failures, attacks from griefers, as well as lag sim crashes that discouraged many of our customers to renew their leases. I estimate a loss of about 15% from May to July because of these occurrences, but I hope to turn things around soon in the coming months as we still have a great team of employees.

From April 1 - June 30, YSL on average we had a monthly income of $ 3,290,000L and monthly costs of $ 3,286,000L. This gave us a small profit of L$4,000 each month, or L$12,000 for the quarter. So that is a good thing that in spite of all the adversity we still had a profit.

We hope to reverse the recent downward trend in the coming third quarter of 2012, although as of August business appears to be more or less similar to the previous three months. Second Life's "summer slowdown" is responsible for much of this as well. Even our shares and stock exchange purchases are declining because of this, but hopefully we will see activity increase in September.

Despite the small positive balance for Q2, at least we have a small profit. We have improved our quality of work and believe in a brighter future. I will give another report at the end of October. Thank you for your business and enjoy the rest of your summer.

Yanko Sella
YSL Chief Executive Officer
Yanko Sella Land Company