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Via Notecard:

For Publication:

DATE: Monday, September 03, 2007

TO: All Sl Capital Exchange Listed Company Executives and other Interested Parties

FROM: Bogart Beck, Chief Financial Officer, SL Capital Exchange

August 2007 - What a long strange trip it's been! A month ago who could have scripted the bizarre chain of events that has rattled the SL Financial Markets? Well, yes, a few pundits and beat writers have predicted its certain demise, and even the mainstream press have jumped on the bandwagon to question the validity, viability and vitality of the SL Capital Markets and investment community.

On this, the one month anniversary of Arbitrage Wise's acquisition of the former AVIX Exchange, I felt it important to highlight an accomplishment of this new team in just thirty days. Herein, I will also outline the newly named SL Capital Exchange (SLCX) reform strategy for the balance of 2007.

Foremost, I am very pleased to report, as of August 31, 2007, fully one hundred percent (100%) of the currently-listed SL Capital Exchange companies and their Executives have achieved the real-life identity verification and transparency requrement recently championed by Lindsay Druart. First, let me thank each of you for recognizing the importance of such transparency and integrity. This effort alone demonstrates the sincerity of your and our efforts to restore market confidence. Please join me in congratulating Lindsay for her heroic effort during this campaign.

Going forward, potential investors can be assured that the SL Capital Exchange Review Committee will fully investigate all companies seeking listing on our Exchange, and can also be confident that the Due Diligence we perform during IPO underwriting will be thorough, complete and transparent.

If we are to restore investor confidence and trust in the SL Financial Markets, yes indeed, reform is necessary. Those who know me in RL understand that I coach recreational Youth Soccer. One core principle that I mandate is Fair Play both on-the-field and off. This most basic tenet is fundamental to life. In my view, whether one is trading legos or lollipops or $Lindens, regardless of whether the commodity or currency is fictious, virtual or otherwise, Fair Play is a REQUIREMENT! To that end,

EFFECTIVE OCTOBER 01, 2007, GAAP-COMPLIANT FINANCIAL REPORTING SHALL BE REQUIRED.

Specifically, each SL CapEx listed company shall be required to submit monthly Financial Reports in a standardized pro forma format that the Exchange has developed and tailored to account for SL gameplay's uniqueness, yet still fully meets GAAP - (Generally Accepted Accounting Prinicples).

Monthly Reporting requirements, due the TENTH BUSINESS DAY OF EACH MONTH, are as follows;

(1) - INCOME STATEMENT
(2) - BALANCE SHEET
(3) - FOREWARD GUIDANCE
(4) - MANAGEMENT COMMENTARY

These four basic documents are the cornerstone of RL publicly-traded businesses, and, therefore must also be the cornerstone of any legitimate attempt to offer "investment opportunity" concepts in a game such as Second Life. Frankly, this mandate will allow your shareholders and potential investors to evaluate your performance using the same metrics and methodologies that have been
proven in RL over time. Sample Statements will be available for download by close-of-business (11PM SLT) Thursday, September 04, 2007 at http://www.slcapex.com . I am confident that this is a necessary and positive step forward for the exchange. When combined with the recently mandated 10-day INSIDER BLACKOUT PERIOD each month, your shareholders and potential investors can be reasonably confident that the three-card-monty shenanigans we've all witnessed elsewhere within
Second Life will NOT occur with SL Capital Exchange traded entities. THAT IS POSITIVE REFORM!

We do recognize that such requirement may be a burden for a few of our nascent Exchange entities. Please look for a TRAINING CURRICULUM that will be made available to Exchange Members during September to help you achieve GAAP Compliance. Details are to follow under seperate cover.

Next, recently several parties have approached the Exchange to advocate a Broker/Dealer network and Market Maker program. WE HEAR YOU.

During the month of September the Exchange will host four PRIVATE CapEx Executive Roundtables to explore the necessity and viability of such a program, While these sessions will be CLOSED to the general public, session MINUTES will be published to allow public commentary and discourse.

As Exchange Members, your voice is VERY IMPORTANT. Please set aside the following four dates to attend and participate in our dialogue and discovery process;

Saturday, September 08, 2007 - 5PM-7PM (SLT) - Exchange Member Roundtable - Location TBD
Saturday, September 15, 2007 - 5PM-7PM (SLT) - Exchange Member Roundtable - Location TBD

Assuming we are able to reach concensus as a member body, we will include a select few known Broker/Dealers for participation in the third and fourth Roundtables (BY INVITATION ONLY) to hear their thoughts and concerns as well, as follows;

Saturday, September 22, 2007 - 5PM-7PM (SLT) - Broker/Dealer Roundtable - Location TBD
Saturday, Septembe, 29, 2007 - 5PM-7PM (SLT) - Broker/Dealer Roundtable - Location TBD

If proven feasible, it is our hope to have a fully operational Dealer Network in place before year-end!

Looking forward into October, we will commence a dialogue to explore a LISTING REQUIREMENTS Policy and mandate for member entities. There has been substantial and often critical commentary of late regarding the need for a MINIMUM CONTINUED LISTING REQUIREMENT for the Exchange.

Personally, I believe this is NECESSARY reform for the long term success of the Exchange and our investment community at large. In the interest of full disclosure please consider the following ideas as ultimately EMINENT in the nearterm, and consider how they may impact your corporate strategy;

(1) - A Minimum L$1.00 share price floor for all exchange-traded securities.
(2) - A Minimum 25% Public float of all exchange-traded securities.
(3) - A minimum 15% Corporate Treasury Stock Reserve for all exchange-traded securities.

These reforms will help reduce market volatility and investor uncertainty as we restore confidence in the SL Public Markets. Clearly, several of these reforms may be painful changes to digest. Each will, however, help level the playing field for shareholders and investors. Again, GOOD REFORM!

Finally, the recent sale of the Innovative Index Fund (NDX) to a banking entity listed on a competing Exchange has compelled us to begin exploring other "market basket" investment strategies that we could introduce to help retail investors mitigate risk and market volatility. I am very intrigued by the SPDR (Standard & Poor Depository Receipt) shares traded on the RW American Stock Exchange. If you have an interest in helping develop such products for trading on the Exchange, please contact Arbitrage Wise or myself so that we may begin to exlore ways to introduce such products nearterm.

Well, this has been quite a long-winded diatribe, nonetheless, I do hope it will help you to be better informed and aware of the extraordinary efforts we at SL CapEx are putting forward to successfully manage and grow YOUR exchange. Should you have any questions please feel free to contact me directly via IM, Notecard or e-mail (bogart.beck@gmail.com). I look forward to serving you well!

Respectfully,

Bogart Beck
CFO, CapEx

Looks interesting. I expect I will be covering some of the meetings. No telling about the private meetings.

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