Sep 21st 2012, 20:57 ZEN Zhenya Zoning Real Estate
by Ashleigh Wade

ZEN to begin a new business chapter.

Investors and Interested Public

As of September 21, 2012, Zhenya Zoning Real Estate has entered into a positive, deep and thoughtful restructuring of our business.

Over the last few months our Management Board has reviewed our operations and market conditions. We drew upon our 3+ years experience running ZEN as a management team and, after careful consideration, decided it is time to take our company in a new direction.

For many years we have been known as Zhenya Zoning Real Estate Company. We are ready to shed that brand and image in pursuit of a better business model.

We've had to make some tough decisions. The last year has been the most challenging in ZEN's 5 years of existence. Despite our best efforts to innovate and renovate we still see an overly challenging land environment that doesn't justify the absurdly high fixed overhead.

We are tired of it. Our business is to make money, and our skills are better utilized in focusing on higher margin lines of business. We are therefore taking action to remove the "Sword-of-Damocles" tier cost and cut to a core customer base. This will allow us to refocus our energy on more profitable ventures.

We will be shutting down 2 regions and keeping 3 - Tamaqua, Southampton Bay and Zensuality. Tamaqua will remain ZEN City, focused on merchants, Southampton will remain a privately leased commerce homestead, and Zensuality will remain our skill game and adult party beach resort theme. These core regions will make up our smaller, yet extremely viable estate operations.

The move will reduce our monthly tier overhead from L$337,000 to L$181,000 per month.

At the same time, this move will free up our management board to
- Push estate growth through added value service in boutique themed environments
- Take social to a new level
- Rebuild and reintroduce ZEN Live!, our live music venue
- Focus on building new merchandise that we've just been discussing to this point
- Push forward with laser focus on growing our high margin skill gaming area
- Have the freedom to innovate instead of worrying how to pay the tier bill

We have notified the residents in the affected regions and provided them with ample notice to vacate. We have also issued refunds totaling L$14,846 for time paid but not used in the 2 regions we are closing. To note, in a healthy environment this amount would be more in neighborhood of L$39,000.

All-in-all, we feel that this restructuring of ZEN is long overdue and sorely needed. We will be publishing more information over the next few weeks, as well as updating our prospectus and company name.

Thank you for your interest. We look forward to higher profitability.

Zaldar Rhode, Chairman
Ashleigh Wade, Chief Executive Officer
McChris Flanagan, Chief Build Officer
Danica Sparta, Chief Operating Officer, ZEN City
YummySarra Genesis, Chief Operating Officer, Zensuality