January 4, 2005

STATEMENT OF THE US DEPARTMENT OF THE NAVY:

In March 2002, after years of intense local debate, Orange County voters
expressed their desired reuse for the future of the former MCAS El Toro when
they voted, by 58%, in favor of Measure W.  That Measure directed a change
to the County's General Plan in favor of use of the property for
non-aviation purposes, including a "Great Park" to be enjoyed by the
surrounding Orange County communities.  The City of Irvine subsequently
annexed the property, and Navy has worked in very close partnership with the
City to formulate plans for the public sale of the property that are
consistent with the clearly expressed will of the local community.  That
public sale begins January 5, 2005, and Navy fully intends to move ahead
with the sale.  As to further inquiries to retain the former MCAS El Toro in
a civilian airfield capacity, the US Department of Transportation has
previously stated that decisions regarding development of civilian airports
rest with local authorities.  The Navy agrees with that view, and has no
plan to defer the public sale for the purpose of entering into any
negotiations with any party aimed at establishing a civilian airport at El
Toro.

The details concerning the Navy's property sale and how that sale
complements City of Irvine land use plans can be found on
http://www.heritagefields.com.