response to my email sent

Hi
It is regrettable that certain journalists such as the writer who has caused you some concern, do not bother to attempt to understand how ciy
has been so successful for more than 10 years!

Again I suggest you balance your information sources with more accurate papers such as the Financial Review. If you buy today's copy,(Thursday 14 Feb) page 56, you will see how City Pacific is pressing on with its
business and is in the processes of acquiring further businesses for the benefit of its stakeholders such as yourself.

We were criticised when our debt level was at 14%..(they said it should be more if we are growing the business) ...and we are criticised because
it was operating at 46%! Fadi,these writers do not run $5 billion businesses, nor do they understand how they should be run in a time when global markets have been hit by credit and liquidity problems.

It is business as usual at City Pacific and we will shortly be announcing a HY08 profit of between 10% and 15% as stated in the ASX/press release. This is very good when compared with most other financial businesses. Most banks are having to disclose incredible losses! Not City Pacific. We are making a profit. This is a very well
run business.

Alan Kohler is probably one of the most respected financial journalists in Australia. This week Alan has recommended CIY as a stock to buy in these difficult times because it pays a high dividend.("Get Ready For
The Upswing" Eureka Report, February 11, 2008).

Question: If you had the choice of appointing a CEO for City Pacific who would you choose Fadi - Phil Sullivan or Ben Butler? Phil Sullivan's achievements are second to none. He has built this company from scratch
and is here all hours of the day and sometimes the night. He is an inspiration to all of us who work for City Pacific.

Last year ASIC put out a list of funds to avoid. There were 93. The City Pacific First Mortgage Fund was not on that list.There are hundreds of thousands of investors in funds who have lost a lot of money with the
market crash, especially those with their life savings in
superannuation. The people who put their super in our Mortgage Fund are still making 9.95% pa. They have not lost any money and they are very
happy.

We can not keep putting out repeat stories on our 10-15% profit forecast. The media will not print it and the ASX will not accept it as we have already advised the market earlier.

The markets are driven by fear and greed....right now there is a lot of fear....understandably when so called good companies collapse.

City Pacific's core fundamentals are solid and it is continuing to fund lifestyle developments at the right time and in the right locations. The Company's history of record profits and results will continue speak
for themselves.

Kindest regards


Mike London
Corporate Media Manager