IBAC Corporation Agrees With the Courts Decision to Appoint a Receiver for the Royal Arkansas Hotel & Suites.

NEW YORK -- IBAC Corporation (IBCX.PK), majority owner of The Royal Arkansas Hotel & Suites, announced today that it agrees with the courts decision to appoint a receiver for its majority stake in The Royal Arkansas Hotel & Suites in Pine Bluff, Arkansas.

IBAC Corporation has been the majority shareholder in this property since August of 2004 and has watched its initial investment erode over the past few years, contrary to the managing partners assurances of progress, as of August of 2006 the company IBAC believed everything was proceeding according to plan until the general manager and managing partner was arrested for alleged credit card fraud, at that point the company (IBAC) decided to remove the managing partner and take control of the property its self, the company IBAC does not lay blame on anyone but its self for not keeping abreast of the situation more carefully.

Since August of 2006 the company (IBAC) has paid almost $1,000,000 dollars in past due bills and operating short falls (plus its initial investment and carrying costs of about $800,000) to try and keep the property going until finally it became a reality that the property had no chance of survival so the decision was made to close the doors, the company apologizes for the way the property was shut down, but the company did the best it could under adverse circumstances.

The company (IBAC) has monitored, news reports, and certain community leaders, (individuals) with advice of counsel, and has determined that all has not been presented fairly, and has been biased towards the company; the company will and is reviewing possible litigation towards those who have damaged the company's reputation and its decisions.

Please keep in mind that the company has the ability to cure the mortgage (until today for two months payments) and the company is still the legal holder of title until foreclosure proceedings are completed, the reason for the court proceedings was a clause in the mortgage note that a receiver can be assigned upon a default, the company evaluated this and decided ok, as the property was a losing proposition so we agreed, the company's attorneys argued before the judge to order all expenses over $500.00 by the receiver has to be agreed upon by us the company (IBAC) and it was agreed, hence the company's decision for this course of action.

"The company awaits the decision of the receiver's feasibility study within the next 30 days as it is the believe of the company that He/She will agree or may not agree with the company's decision to cease operations as the loses were beyond compare, the hotel was depended on the convention centers sales and their ability to bring business to Pine Bluff, and in my opinion it was lackluster at best. Every time I have visited Pine Bluff everyone has been cordial and courteous and friendly and I wish nothing but the best to the City of Pine Bluff, the company believes that it has made the right business decision." Said Edward W Hayter CEO IBAC Corporation.

Forward-Looking Statements

Certain statements in this release, and other written or oral statements made by the Company, including the use of the words "expect," "anticipate," "estimate," "project," "forecast," "outlook," "target," "objective," "plan," "goal," "pursue," "on track," and similar expressions, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance, or achievements of the company to be different from those expressed or implied. The Company assumes no obligation and does not intend to update these forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, without limitation: competitive and general economic conditions, adverse effects of litigation, the timely development and acceptance of our products and services, significant changes in the competitive environment, the failure to generate or the loss of significant numbers of customers, the loss of senior management or increased government regulation.