ADVISORY/Festival of Arts Officials to Sign New Lease Agreement.

Business Editors

ADVISORY...for Tuesday (Dec. 3)

--(BUSINESS WIRE)

Festival of Arts

Festival of Arts Board of Directors and Laguna Beach City Officials Will Jointly Sign a Lease Agreement for the Festival of Arts Grounds

WHEN:   6 p.m., Tuesday, Dec. 3, 2002

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

WHO:    Festival of Arts Board of Directors:
        Bruce Rasner (President), John Campbell  (vice-president),
        Bob Dietrich (treasurer), Dianne Reardon (secretary), Kathleen
        Blackburn, Bob Henry, Scott Moore, 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 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 16 months. Together, they will sign a 40-year
        lease agreement at Tuesday's City Council meeting.

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