Cal-Bay in Negotiations for Sale of MB3 Race Team Division.

CARLSBAD, Calif. -- Cal-Bay International, Inc. (OTCBB:CBAY) announces the company is in negotiations for the sale of its MB3 ARCA Race Team division, based in Mooresville, North Carolina.

Cal-Bay International's board of directors today commented that the race team was originally purchased as a major promotional tool for the development division of the company, but became an administrative challenge with the division being so geographically disconnected from the company's California headquarters.

President & CEO Roger Pawson commented, "The company owns a valuable portfolio of developable land and intends to stay focused on the completion of the developments in 2007 to create revenues and profits for the company, its investors and shareholders. The race team division was a time-consuming distraction away from the focus of the company's business plan."

Cal-Bay's management expects to conclude the sale before the end of March 2007.

FORWARD-LOOKING SAFE HARBOR STATEMENT: To the extent that this release discusses any expectations concerning future plans, financial results or performance, such statements are forward-looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended, and are subject to substantial risks and uncertainties. Actual results could differ materially from those anticipated in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and reflect only management's belief and expectations based upon presently available information. These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties. The Company assumes no obligation to update any of the forward-looking statements in this release.