Phoenix Associates Announces Ongoing Investigation

Phoenix Associates Land Syndicate (Phoenix) (PINKSHEETS: PBLS) announced today that the Company is in the process of an ongoing investigation related to Michael Riley and certain information about Mr. Riley and others that was released about them by the Company in recent news releases. In this regard, Paul Alonzo, CEO and President of Phoenix, has written the following letter to shareholders.

To Phoenix Shareholders:

The following "link" contains public information related to Michael Riley (George M. Riley, Sr.) that has been discovered during our on going investigation into certain background information that had been provided to the Company by Mr. Riley and others that had been made a part of previously released news by Phoenix. http://www.mortgagefraud.org/journal/man-indicted-in-ohio-fraud-allegations.html

Our investigation is on going and is very detailed and in depth.

There are many possibilities that are being investigated which include false and misleading statements that are being made to certain current or past shareholders by certain individuals which are then being passed on to the public via the "chat" boards as if proven facts by these current or past shareholders. We believe that these actions have damaged Phoenix share value dramatically and those involved will be dealt with at the proper time at the end of our investigation.

Phoenix continues to operate its divisions as usual, while dealing with this very serious issue. We will continue to make news releases from time to time as our ongoing investigation and the investigations of certain local, state and federal authorities that are now involved brings out all the facts on these matters.

Phoenix management apologizes to all of our shareholders for letting ourselves become involved in this situation, but we assure our shareholders that we will overcome this situation.

Paul Alonzo
CEO & President
10/9/07

About Phoenix Associates

Phoenix Associates Land Syndicate is a holding company with assets in aviation, sand & gravel, soil products, land development, oil and natural gas, commodity brokering, plumbing, trucking, contract hauling, construction, swimming pool construction and construction related industries. For more information go to: www.pbls.biz

Forward-Looking Statements

This press release contains statements that are "forward-looking" and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and federal securities laws. Generally, the words "expect," "intend," "estimate," "will" and similar expressions identify forward-looking statements. By their very nature, forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results, performance or achievements, or that of our industry, to differ materially from those expressed or implied in any of our forward-looking statements. Statements in this press release regarding the Company's business or proposed business, which are not historical facts, are "forward-looking" statements that involve risks and uncertainties, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date they are made.

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