ADVISORY/Festival of Arts Board of Directors and Laguna Beach City Officials Will Jointly Make A Major Announcement Regarding Lease Agreement For The Festival of Arts Grounds.

Business Editors & Entertainment Writers

ADVISORY...for Tuesday (Aug. 13)

--(BUSINESS WIRE)

Festival of Arts

WHEN:    6 p.m., Tuesday, Aug. 13, 2002

WHERE:   City of Laguna Beach Council Chambers
         505 Forest Avenue, Laguna Beach, Calif., 92651

WHO:     Festival of Arts Board of Directors:
         Scott Moore (president), Bruce Rasner (vice president), Bob
         Dietrich (treasurer), Dianne Reardon (secretary), Kathleen
         Blackburn, John Campbell, Bob Henry, Ann Webster and David
         Young

         Laguna Beach City Council Members:
         Wayne Baglin (mayor), Paul Freeman, Steve Dicterow, Cheryl
         Kinsman and Toni Iseman

WHY:     The city of Laguna Beach and the Festival of Arts have been
         negotiating a new lease for nearly six years. After the first
         four years, lease negotiations became hostile and the
         Festival's board of directors announced that it planned to
         move the Festival and Pageant of the Masters to San Clemente,
         Calif. The Festival of Arts exhibitors and members were
         angered by this announcement because Laguna Beach had been
         the Festival's home for nearly 70 years. A major campaign was
         launched to oust this board. In November 2000, the entire
         Festival of Arts board was recalled and a new board was
         elected. This new board and Laguna Beach officials have been
         in confidential lease negotiations for more than one year.
         Together, they will make a major announcement regarding a
         lease agreement at Tuesday's City Council meeting.

NOTE:    Individuals from both sides will be available for media
         interviews. Handouts will also be available.