Crescendo Redefines Luxury Vacation Segment With First Equity-Based Model for Destination Clubs; Acquisition of Hawaii Property Announced.

ROSEVILLE, Calif. -- Crescendo, based in Roseville, California, is the first private equity investment group to marry real estate investing with luxury vacationing, delivering both financial and lifestyle rewards heretofore unseen in the industry. Crescendo has redefined the destination club category, offering not only first-class vacation experiences in the world's premier destinations, but also an equity-based, diversified real estate investment model.

Crescendo calls its pioneering vacation ownership model experience investing(TM), considered by many to be the future of vacation home ownership and destination clubs. Experience investing is ideal for people with discerning tastes who seek a vacation lifestyle marked by five-star amenities and services, but don't want the hassles and financial obligations associated with second home ownership. It's for those who wish to be more than just a non-equity "member" of a vacation club; rather, Crescendo investors own the assets they enjoy.

"The market for second-home vacation ownership is cluttered with a dizzying array of timeshares, fractional ownerships, and destination clubs," said Michael Burns, chairman of Crescendo. "As a 30-year veteran of the industry, I have watched from the inside as the destination club industry, in particular, has evolved, and their shortcoming is apparent: when all is said and done, the club members do not own the assets and, therefore, have little security and no upside potential. We feel we've created the next generation of destination clubs, one that marries a genuine real estate investment with the enjoyment of first-class vacation homes in the world's premier destinations."

Burns also announced the debut of Crescendo's latest property, a four-bedroom, five-and-one-half bath, 4,000-square-foot villa in the Mauna Lani Resort area on the Kohala Coast of the Big Island. As with all Crescendo properties, the custom home is spacious, ideal for families or groups, and rich with amenities.

Owners have access to vast amenities within Mauna Lani including the Mauna Lani Sports & Fitness Club, the children's Camp Mauna Lani, the private Mauna Lani Beach Club, and fine dining at the Beach Club Restaurant & Bar. Amenities within the home include a heated infinity pool, a spa, and outdoor showers; outdoor BBQ; state-of-the-art entertainment systems and fully-equipped theater room; a full-scale business center including a personal computer, printer, fax, wireless Internet access, and a VOIP telephone; flat-screen televisions and video game systems; and complete laundry facilities.

The Properties

Crescendo has a portfolio of luxury vacation residences in some of the world's most sought-after destinations. Current properties include: Great Bear Lodge at Lake Tahoe; Casa Miramar in Los Cabos (Cabo del Sol), Mexico; Manhattan 205 in New York City; Casa Luna in Punta Mita, Mexico; The Rocks in Scottsdale, Arizona; Les Saisons in Sun Valley, Idaho; and, Mauna Lani along the Kohala Coast, Hawaii. In 2006 the company anticipates acquiring new properties in the Caribbean, Costa Rica, Maui, Park City/Deer Valley, and Tuscany, Italy.

Crescendo owners have every possible playground at their doorstep, be it sun and surf, forest and mountain, desert oasis or urban jungle. Many of the homes are associated with five-star resorts, affording Crescendo owners and their guests access to resort amenities, including restaurants, spas, championship golf courses, tennis courts and private club facilities.

Crescendo residences have a median value of approximately $2.7 million. Each custom-outfitted home has an average of four bedrooms and offers up to 6,500 square feet of living space, enough room for families and guests. The homes are furnished impeccably, and boast fully-appointed epicurean kitchens, flat-screen televisions, fine linens, pools, whirlpools and more. Decorated with an eye toward casual elegance -- and in a style indigenous to the destination -- the interiors are well appointed and sophisticated, yet comfortable enough to accommodate families with children.

The Services

Experience investing(TM), above all, is defined by first-class service. From the moment reservations are made to the time owners arrive on the premises and through the duration of their stays, they are treated to comprehensive concierge services usually only available at five-star resorts. All services and amenities are personalized to suit the needs and interests of each incoming party.

Ground transportation is provided to and from the airport and residence. Prior to arrival, kitchens are stocked with groceries and beverages selected by owners. The living spaces are outfitted with the particular types of games, books, entertainment, and flowers that most appeal to the owners and guests. Baby gates, playpens and highchairs are available for families traveling with small children. Many residences include daily housekeeping and chef service; all properties avail this service on demand.

Crescendo's staff will arrange dinner reservations, tee times, theater tickets, boat rentals, scuba lessons, spa treatments, childcare -- essentially anything an owner may want while on vacation. The company has even created a Great Experiences Team whose sole purpose is to conceive and execute hassle-free, dream getaways for every owner.

"Crescendo's concierge services are incredible, the perfect balance of personalized planning and at-your-call service. Just knowing that everything will be taken care of relieves the stress normally associated with traveling," explained Dorcy Russell, a Crescendo owner since early 2006. "I recently planned a surprise birthday party, while staying at the New York residence. It was a huge undertaking and, without the help of Crescendo's Great Experiences team, I would not have been able to pull it off. Our guests were amazed with everything, down to little details like the cake and decorations. I was able to relax and enjoy just being there. Crescendo takes care of the legwork and leaves us to the business of making memories."

The Process

Crescendo is a limited liability company (LLC) and a fully-compliant Regulation D securities offering. Crescendo relies of word-of-mouth referrals to attract investors. Favoring quality over quantity, Crescendo intends to keep owner-to-residence ratios low. A new property is purchased when seven investors have been assembled. With a cap on the number of investors, the Crescendo experience has been designed to remain intimate, exclusive and financially sound.

Now two years old, industry experts are praising Crescendo for its pioneering concept. "Crescendo represents a breakthrough in vacation home ownership and destination clubs. It creates a unique combination of the experience of luxury homes and concierge service and the upside of a real estate investment fund," explained Andrew Hargadon, Ph.D., Associate Professor of Management with University of California, Davis Graduate School of Management.

Owners purchase an equity interest in the company, analogous to owning a mutual fund of luxury residences. The capital contribution per investor is presently $295,000, increasing to $315,000 in August 2006, and then to $335,000 in November 2006. Crescendo owners select one of three use plans: Gold, with annual dues of $15,000 and 20-25 nights of property usage; Platinum, with dues of $23,500 and 40-45 nights of family usage; or Platinum Unlimited, $28,500 dues and 40-45 nights of use by anyone (family members do not need to be present).

About Crescendo

Crescendo presents the first opportunity to own and enjoy a portfolio of luxury residences in the world's premier vacation destinations. For less than the typical down payment on a second home, Crescendo investors enjoy 20 to 50 nights of hassle-free, first-class vacations each year. Crescendo's unique equity-based fund is as analogous to a REIT, allowing members to reap the rewards of asset appreciation. With five-star concierge service and multi-million dollar properties, as well as the security and potential upside of real estate ownership, Crescendo truly is A Lifestyle to Appreciate(R). For more information about Crescendo, visit www.crescendoresidences.com or call 800/949-3579.