Jan 6th 2009, 20:37 ZEN Zhenya Zoning Real Estate
by Ashleigh Wade

ZEN sees profitable December in very active month.

Posted in the forums:
http://www.slcapex.com/forums/topic/ZEN/2288

Hello Everyone,

First, happy new year! I wish you all the best this new year. May it be healthy, happy and prosperous.

-Financial Results Summary-
December at ZEN was pretty good. I am pleased to report we closed our shortfall and ended the month with small profit of L$13,785. You will recall last month we saw an operating loss of L$47,563. Looking forward, a breakeven/small profit/small loss fluxuation will most likely be par for the course in 1Q 2009 as we finish diversification, restructuring and product development. However, the net result is strong ZEN with clear products, processes, and plans.

-Dividend Practice and Guidance-
In 2009, the board will discuss dividends quarterly, specifically the end of March, June, September, and December. We will issue dividends as we feel the treasury can handle a dividend payment.

-Estate Operations Update-
December saw a fair amount of churn in the estate, including a few givebacks, resulting in more land that is available and unoccupied. As a result, our core land business remains weaker than we would like, however we are steady at about 80% occupancy.

One really cool spot that has developed is our new gated community - “The Enclave at Panther Valley”. We have 7 small parcels for sale in the enclave, and they are *perfect* for a townhouse or gallery. You can check out the enclave here:

http://slurl.com/secondlife/Panther%20Valley/48/195/22

Another bright spot is ZEN Fifth Avenue. Over our little over 1 ½ years in existence Strider Messmer has led the community in Tamaqua to form an amazing downtown fashion shopping district where you can get dressed from head to toe in style, class and luxury. Fifth Avenue is a pillar of the ZEN community and was holiday featured in the Metaverse Messenger – December 23rd edition, page 13:

http://www.metaversemessenger.com/pdf/2008/12/MM20081223.pdf

In the balance of our sims the community is strong and business is great. We have great neighborhoods and great neighbors.

I would like to invite you to participate in our community. We hold bi-weekly town halls led by our COO, Annabis Moody, and they are a great forum for community feedback and communication. The first town hall was held on January 2nd, and the balance of January town halls will be on the 17th@ 2PM SLT and on the 31st @ 2PM SLT. They will be held at the ZEN Town Hall in Tuscarora.

Also of high interest, our own Chief ZEN Zaldar Rhode will be premiering his film works at our new ZEN Live venue in Tuscarora. We are extremely excited about this event and want you all to join us on Saturday, January 10, 2009 at @ 2PM SLT – ZEN Live! (Tuscarora)

I am also pleased to announce that we have completed our 2009 Client Referral Program. This program rewards our current tenants with discounts for referring new tenants. We look forward to the rollout of this program over the next month. The program will be posted in full in the forums for shareholder review.

-ZEN Merchandise Update-
A key element to our diversification strategy is the development of merchandise to subsidize our revenue and even out the ebb and flow of the estate business. While progress on this has begun, I have to admit it has been somewhat slow. We have identified two main product lines, AZ Homes and ZEN Photography and Artwork. Both lines have seen some development and we have begun construction on The ZEN Store. We will continue to work on these lines with the goal of having the store and some merchandise completed and for sale at the end of the month. We realize this is a priority; however the land business remains first and foremost the continual focus.

-Senior Executive Adjustment-
Arnaud Villota has surrendered his estate management duties as of January 3, 2009. This was necessary in order to free his time to focus on his obligation to Phoenix Distribution. He will lose the title of Chief Client Services Officer, however he remain on board as our Chief Financial Officer and Member of our Management Board. We want to thank him for his ongoing dedication of time and effort to ZEN and we wish him and Phoenix Distribution the best going forward.

The estate duties previously handled by Arnaud will be split between myself and Annabis Moody, COO. The estate managers will report into Annabis. An updated corporate deck and organizational structure will be completed ready for shareholder viewing by the end of the month and will be posted in the ZEN Investor Relations Office at ZEN HQ in Tuscarora.

-Conclusion-
In conclusion, I am pleased with what we have achieved since the end of September. Our team is strong and our community is strong. Our tenants are great and we are on the right path. I look forward to the new year and what it holds.

Please feel free to contact me at any time with any questions you may have.

Kind Regards,
Ash

Ashleigh Wade
Chief Executive Officer
Zhenya Zoning Real Estate Company