Cold Spring Capital Inc. to Hold Special Meeting in 2007.

NEW CANAAN, Conn. -- As previously announced, on November 3, 2006, Cold Spring (AMEX:CDS) entered into an agreement to purchase all outstanding equity interests of Sedona Development Partners, LLC ("Sedona"), which is the owner of The Club at Seven Canyons. Cold Spring filed a preliminary proxy statement with the Securities and Exchange Commission ("SEC") on November 13, 2006, in connection with a special meeting of its stockholders (the "Special Meeting") at which the stockholders will be asked to approve, among other things, the election of a new Class I member of the board of directors and the proposed acquisition of Sedona.

Cold Spring did not hold an annual meeting of its stockholders during 2006 but instead intends to cover the matters that would otherwise be covered at its 2006 annual meeting at the Special Meeting. Cold Spring expects to hold the Special Meeting during the first or second quarter of 2007 (and in any event no later than May 16, 2007), subject to the timing of the SEC's review of Cold Spring's proxy statement. Cold Spring intends to work as promptly as practicable to respond to the SEC comments on the preliminary proxy statement, finalize and mail the proxy statement to its stockholders and hold the stockholder meeting.

About Cold Spring Capital Inc.

Cold Spring is a special purpose acquisition company established in May 2005 for the purpose of acquiring, through a merger, capital stock exchange, asset acquisition or other business combination, one or more operating businesses, portfolios of financial assets or real estate assets that it expects to generate financial assets. Since inception, Cold Spring has been negotiating potential acquisitions.

About Sedona Development Partners, LLC

Sedona is a leading specialty real estate developer that owns and operates The Club at Seven Canyons, a successful luxury fractional ownership development located in Sedona, Arizona.

Safe Harbor 

Stockholders of Cold Spring are advised to read, when it becomes available, Cold Spring's proxy statement in connection with Cold Spring's solicitation of proxies for the special stockholder meeting at which the stockholders will be asked to approve, among other things, the Sedona acquisition, because it will contain important information. The definitive proxy statement will be mailed to Cold Spring stockholders as of a record date to be established for voting on the acquisition of Sedona. Stockholders will also be able to obtain a copy of the definitive proxy statement, without charge, by directing a request to: Cold Spring Capital, 51 Locust Avenue, Suite 302, New Canaan, Connecticut 06840. The proxy statement, once available, will also be available, without charge, at the Securities and Exchange Commission Internet site, www.sec.gov.

Cold Spring and its directors and executive officers may be deemed to be participants in the solicitation of proxies for the special meeting in connection with Cold Spring's solicitation of proxies for the special stockholder meeting at which the stockholders will be asked to approve, among other things, the Sedona acquisition. Information about Cold Spring's directors and executive officers is available in its Annual Report on Form 10-K for the year ended December 31, 2005, filed with the Securities and Exchange Commission, and such information will be available in the proxy statement.

This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements in this press release and those made from time to time by Cold Spring through its senior management are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Cold Spring's current views with respect to the future events or financial performance discussed in this release, based on management's beliefs and assumptions and information currently available. When used, the words "believe," "anticipate," "estimate," "project," "should," "expect," "plan," "assume," "intend" and similar expressions that do not relate solely to historical matters identify forward-looking statements. Forward-looking statements concerning future plans or results are necessarily only estimates and actual results could differ materially from expectations. Certain factors that could cause or contribute to such differences include, among other things, the risk that the acquisition of Sedona may not be consummated because of the failure of a party to satisfy closing conditions or the failure of the stockholders of Cold Spring to approve the acquisition or for other reasons, Cold Spring's being a development stage company with no operating history, the risk that Cold Spring will not be able to reduce financing costs or achieve projected revenue and other fiscal results in 2008, risks associated with the real estate market and/or real estate development projects and real estate ownership, the risks associated with significant indebtedness, and other risks described in the Securities and Exchange Commission filings of Cold Spring, including Cold Spring's Annual Report on Form 10-K for the year ended December 31, 2005 and its Quarterly Report on Form 10-Q for the quarters ended March 31, 2006, June 30, 2006 and September 30, 2006, under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations." The forward-looking statements speak only as of the date of this presentation, and Cold Spring expressly disclaims any obligation to update any forward-looking statements.