As we enter the New Year, I am pleased to introduce this inaugural edition of our monthly newsletter, World Jewelry Center Insights. In this and future issues at about the same time each month, we will engage the global gem and jewelry industry with news about our progress in developing this visionary project. We are creating a unique one-stop trade and retail gem and jewelry center in one of the world's most exciting cities. Insights will include inside information and views about the substantial features and benefits of the WJC. In addition, we will provide you with updates on critical aspects such as the Foreign Trade Zone and local and state tax laws and business regulations.

In my frequent international travels since we began operations last August, I have been gratified by the warm and enthusiastic response from the hundreds of business leaders who have heard our presentations about the World Jewelry Center. The interest level is very high, and with the recent

addition of publicity, plus "word-of-mouth" communications, the momentum is building every day. Many fine firms are embracing the vision and taking action to become part of it.

I am excited to report that we have already received dozens of signed Letters of Intent to secure space in either the office trade tower or the retail center. And many more are pending final approval. Our goal is to create a truly global center - an especially great opportunity for vertically integrated companies - where trade can be conducted at every level. For the accompanying retail promenade, we will carefully select a mix of gem and jewelry firms that can provide a global variety of high-quality jewelry products presented in an intriguing and completely satisfying shopping experience for consumers.

I hope you find this newsletter informative and useful. Please forward it to a colleague who might be interested. Your comments and questions are always welcome. I anticipate seeing you in person in the weeks and months ahead as we move forward with even greater success. In the meantime, I extend my best wishes for a very prosperous, happy, and healthy New Year for you and your family.

City of Las Vegas officials, in conjunction with Probity International Corporation, unveiled plans for one of the largest jewelry projects in the world, the approximately one-million square foot mixed-use World Jewelry Center (WJC). Las Vegas Mayor Oscar B. Goodman was present alongside developer Robert Zarnegin and Bill Boyajian, former President of the Gemological Institute of America and current Managing Director of the WJC, to formally announce the project to the jewelry industry, on October 25, 2006. The World Jewelry Center will combine the corporate offices of several hundred domestic and international gem and jewelry companies in a trade tower that will be one of the tallest office buildings in Las Vegas, along with a separate, freestanding gallery of retail jewelry stores with broad middle-market appeal. The WJC is planned to open for business in 2010.

The World Jewelry Center is being designed by award-winning Altoon & Porter Architects. Tenants will own their own subdivided space in the trade tower, which will also include meeting and exhibition facilities, several international restaurants, a private club, and a fitness center. The top floors of the tower will be dedicated to luxury residential condominiums with panoramic views. The adjacent three-story retail jewelry center will have a world-class gem and jewelry museum and exhibition space open to the public. The retail center will be designed to educate and excite the general public about gems and jewelry by building confidence in the products designed and manufactured from around the globe.

"We're very excited about this global project coming to our city. The World Jewelry Center will revolutionize the jewelry industry as well as change the way people and businesses view Las Vegas," said Mayor Oscar B. Goodman. "The entire concept of the World Jewelry Center is very progressive and will fit in well with all the other innovative, international business projects coming to our city. The tower itself will change the face of the Las Vegas skyline and become a key landmark for the city."

The Center will be built with every amenity and service in mind to make the WJC the world's premier fully integrated, service-oriented business hub catering to international and domestic retailers, manufacturers, dealers, and wholesalers in the gem, jewelry and pearl industries. The WJC will include: state-of-the-art security; secure shipping and receiving; gem grading labs and educational facilities; trade associations; and dedicated Foreign Trade Zone. The WJC will be located in Downtown Las Vegas within the prominent master-planned community of Union Park.

"We look at the World Jewelry Center as adding value and synergy to the industry as a whole," said Bill Boyajian. "We are building this worldclass facility so that industry professionals and other major global centers will have another marketplace with which to do business more effectively

and in real-time. To be well connected, to build business, and to enhance commercial opportunities, industry leaders will want to have offices here. I am pleased to say that many of the world's leaders in multiple sectors of the trade have already signed up to join us."

According to Boyajian, "The WJC has attracted key trade leaders who span all industry sectors and international boundaries, creating an environment that will bring about new ideas and best practices that will only make our industry better. Our goal for the retail center mirrors that of the trade tower. We are focused on quality, integrity and value in building and enhancing consumer confidence. Our emphasis will be on public education, security, convenience, product differentiation, and a great buying experience. Nothing will be spared in meeting these objectives."

"Many people within the industry have asked me, 'Why Las Vegas?'" said Robert Zarnegin. "Las Vegas is a crossroads that is well-known around the world. People love to travel here for both business and pleasure. A key reason for building this industry hub in Las Vegas is that the environment here is truly progressive and pro-business."

Probity International Corporation's compelling reasons for choosing to develop the WJC concept in Las Vegas include: no state corporate, inventory or personal income tax; the ability to create a Foreign Trade Zone facility within the WJC; superior telecomm and utility infrastructure; Las Vegas hosted 40 million visitors in 2005, nationally and internationally; Las Vegas is one of the largest convention markets in the U.S. including the annual JCK Show, the world's largest gem and jewelry exhibition; excellent regional, national, and international access; the success of the World Market Center, located proximate to the WJC, as the U.S. business hub for the furniture industry; and Las Vegas is one of the fastest growing cities in the U.S. in terms of population and jobs, and, as the entertainment capital of the world, is one of the most exciting places to be.

Probity International Corporation is a prominent Beverly Hills-based, fully-integrated real estate company that has for the past 30 years successfully developed and operated Class-A office, hotel, retail, industrial and residential properties in the U.S. and abroad. Probity developments and investments include: The Peninsula Beverly Hills, a Five-Star, Five- Diamond, world-class hotel; 660 Madison, 250,000-square feet of Class- A office space located on Madison Avenue in Manhattan above Barney's Department Store; The Wilshire, a 27-story landmark in Los Angeles; Rodeo Drive Center in Beverly Hills; and the Brentwood Financial Plaza in Los Angeles, to name a few. More information on Probity International Corporation can be found at www.probityinternational.com.

(Photo caption, from left ) During the event announcing plans for the World Jewelry Center, Las Vegas Mayor Oscar B. Goodman presented a key to the city to Robert Zarnegin, Probity International President & CEO, and Bill Boyajian, Managing Director of the World Jewelry Center.

World Jewelry Center (WJC) Managing Director Bill Boyajian visited Israel December 17-19 for a series of meetings and presentations to explain the WJC project to members of the Israeli diamond, gemstone, and jewelry industry.

"We were excited by the response from our Israeli friends to the idea of an all-encompassing jewelry trade center in Las Vegas," Boyajian said. "As a result, we have already received several signed Letters of Intent for space in the office tower, and we expect many more in the coming weeks.

One of the key benefits of doing business in the World Jewelry Center that Boyajian discussed with Israeli diamantaires and other jewelry business leaders is the anticipated Foreign Trade Zone, which allows for goods to enter Las Vegas duty-free and remain that way until sold.

The WJC will also offer business owners many other advantages, from Nevada's business-friendly environment and favorable tax laws, to the more than 40 million shopping-minded people who visit Las Vegas annually, and the city's state-of-the-art communications and transportation systems.

"The World Jewelry Center will truly be a global marketplace, and we are seeking participation from every area of the international gem, jewelry, pearl, and watch industries," said Boyajian. "With the commitments we already have from businesses in the U.S., Asia, India, and Polynesia, and many more in the offing, we're seeing a global reach for the World Jewelry Center that we want to build on."

Las Vegas Mayor Oscar B. Goodman led an impressive array of distinguished officials and guests at a special event held here on Oct. 25, as plans for the World Jewelry Center (WJC) were announced by Probity International Corporation and the city. The WJC will be a focal point of the Las Vegas master-planned Union Park community, part of a major downtown revitalization effort.

"We were thrilled with the warm and supportive red-carpet treatment extended by everyone, most notably Mayor Goodman, whose visionary leadership is transforming Las Vegas, as well as Nevada Governor-elect Jim Gibbons and his wife, Dawn, and the many city and county officials who attended the event," said Bill Boyajian, WJC managing director and former president of the Gemological Institute of America.

Goodman presented a proclamation to Probity International Corporation President and CEO Robert Zarnegin and Boyajian, designating Oct. 25, 2006 as "World Jewelry Center Day" in Las Vegas. Goodman also gave Zarnegin and Boyajian a key to the city. "Probity International Corporation is one of the key partners who share the same goals and visions for the Downtown Las Vegas transformation," said Goodman.

Proclamations commending the launch of the WJC project were received from Nevada Senators Harry Reid and John Ensign, Nevada Governor Kenny Guinn, Nevada Lt. Governor Lorraine Hunt, and Nevada Congresswoman Shelley Berkley. An assistant to Sen. Ensign also attended the event.

Comprising about one million square feet, the WJC will include state-of-the-art security; secure shipping and receiving; gem grading labs and educational facilities; trade associations; and plans for a dedicated Foreign Trade Zone. Tenants will own their own subdivided space in the tower, which will also include meeting and exhibition facilities, several international restaurants, a private club and a fitness center. The top floors will be dedicated to luxury residential condominiums with panoramic views.

In a letter from the city of Las Vegas, Mayor Goodman said the WJC is "a momentous attribute to the development of Las Vegas," and added that the WJC "will become a focal component of the vibrant Downtown Las Vegas community and a source of interest for future growth. The tower itself will change the face of the Las Vegas skyline and become a key landmark for the city."

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