Sep 29th 2009, 21:04 ZEN Zhenya Zoning Real Estate
by Ashleigh Wade

ZEN suspends SPO, Returns to Trading & Changes Strategy

Dear Shareholders,

Thank you for your ZEN. We have decided to pull our SPO based on shareholder sentiment and enterprise altering business conditions. We have re-entered active trading.

ZEN has seen a deterioration of resident occupancy, despite incredible marketing efforts and a substantial sales effort. In response, we have to rethink the way we are doing business. Our environment is not the same as when we entered SPO. We feel are well positioned to endure the oncoming storm, but we must act quickly to re-position ZEN.

From the time I entered office one year ago ZEN has had a core group of clients representing a substantial potion of our revenue. Slowly but surely since July 2009 that core group has deteriorated to the point where the bottom fell out in late August/early September. This reality is concerning.

ZEN prides itself on client experience, and indeed some of our current residents which left us returned and bought shares in the company. Some of our residents left and thens bought shares in the company. We need no higher compliment. People love us. Our community is remarkable. I’ve bought every ZEN share I owned. ZEN is an experience; a group of great people doing remarkable things.

However we have to change the way we do business or it's not going to be pretty. The deterioration since the beginning of summer has gutted us.

Blue Mountain now sits 50% empty with another 25% coming up for non-renewal. Tuscarora is okay, but is 15% open. Tamaqua is steady, but has a large landholder with an adult business in a mature sim which we have to accomodate. Panther Valley is about 55% open. This is reality.

In response our operations team has stepped up the effort to remodel and expand some of our trademark properties, such as ZENCity and The Enclave at Panther Valley. We have rebuilt our roads. We have marketed. We have ads. We have a shop. We have land sales and managers and people who will bend backwards. We even have a Chamber of Commerce! These efforts have paid off. But it’s not enough. We can't replace residents fast enough to sustain subtantial profitability.

Here's our plan:

In a decision formulated and confirmed by shareholders representing 75.6% of the ZEN shares outstanding we have decided to change Blue Mountain’s rating from Mature to Adult, separate it from Ata and re-brand it to Zensuality, an adult ZEN experience. We already have confirmation of 15% occupancy and expect a further confirmation of 25% within 24 hours. As you know, sex sells. Our aim is to land our adult Tamaqua client as the anchor tenant for this sim. He has over 2 years experience in escorts and provides consistent revenue.

This decision was reached during an emergency session to determine how we can best position our company as a continuing profitable and viable ongoing concern and was agreed upon by the following members of the ZEN executive committee.

More information will be forth coming…Thank you for your patience as we restructure. Now we've got to get back to work lol.

With warm regards,

Zhenya Zoning Real Estate Company Executive Committee

Zaldar Rhode, Chairman
Ashleigh Wade, Chief Executive Officer
Annabis Moody, Chief Operating Officer
Arnaud Villota, Chief Financial Officer