Major Cybernet Expo News: PLEASE READ

[LAJ]

Cybernet Expo concluded on Sunday, and we are very happy to report that the show was a great success for its attendees.

The seminars were informative and well attended, the “Corridor Cruisin’” event was very popular as always, and the show’s loyal sponsors treated attendees to a number of fantastic parties and enjoyable events. As expected, Cybernet Expo was a great place for attendees to do business. The outcome of this year’s show is especially satisfying because there were a number of significant and unwelcome hurdles that were thrown at the Cybernet Expo team in the last two months leading up to the show itself. As a number of attendees have commented on the large presence of security at the show this year, we felt that an explanation was appropriate.

Just as it was last year, this year’s Cybernet Expo was held at the Kona Kai resort on Shelter Island in San Diego, California. The 2005 show was held without any noteworthy problems. As a result, the hotel management at that time gladly invited us back again this year, offering the same low room rates for attendees. The 2006 event contract was signed in August 2005, largely because it proved to be a fantastic venue.

Unfortunately, Atlas Hotels purchased the facility and took over its management in Oct 2005. From October 2005 until late March 2006, Fay Sharp, Dave Gould, and Jay Kopita planned Cybernet Expo 2006 under the assurances that it was business as usual. The hotel worked with us and showed every indication of honoring the contract. Atlas Hotels waited until late March of this year, to send a letter claiming to cancel its contract for Cybernet Expo.

Their "cancellation" came much too late for us to turn back. On short notice it was not feasible to find another hotel that would give Cybernet the majority use of its property at a reasonable rate. We were left with no choice but to contact our attorney and initiate legal action.

Atlas Hotels was simply speculating that an adult-related event would by its nature place the hotel’s liquor license in jeopardy. Even though this particular event had never proved problematic for any of its host venues throughout its long history, Atlas nonetheless made a reckless decision that threatened to destroy Cybernet Expo.

There is only so much we can say at this point because the litigation is ongoing. As Atlas Hotels would never back off and honor the contract, we were forced to go through the courts to obtain a preliminary injunction, and continue through both Mediation and Arbitration. We were very pleased when the Arbitrator found that Atlas Hotels was in breach of contract. From the start, we felt there was simply NO WAY that we could allow the show to be cancelled. We believe the hotel saw us as easy targets; but rather than just roll over, we fought them tooth and nail. This battle has been very costly and we are still fighting to enforce our rights.

We can't even begin to express to you how grateful we are to the loyal sponsors and fantastic attendees who supported Cybernet Expo this year. The fact that this event even happened was a victory for Cybernet Expo, but to get the kind of support we got from the show’s participants is what truly makes this fight with Atlas Hotels worthwhile.

Obviously, Cybernet Expo 2007 will not be happening at the Kona Kai resort, nor will it be held in the city of San Diego. We'll be announcing the location of next year's show sometime later this summer.

Thanks again for the overwhelming support and for helping to make this year's show a successful experience for the people who matter most – our attendees and our sponsors!