Castle Village

IRS CASUALTY LOSS AUDIT

MONTHLY UPDATE

October 1, 2008

Dear Shareholders,

We have requested monthly updates from Poe and Freireich which will contain a status report of the overall case, any new or major developments, and information regarding individual unit owners, including what steps they have taken for each individual case. The information regarding individual unit owners has been redacted from this memo for reasons of confidentiality.

Please note that this is a “group action”. As such, our fee arrangement with Poe and Freireich does not include discussions with individual shareholders.

Therefore, all questions and concerns should be directed to the Castle Village Management office. Similar questions will be grouped and answered in the monthly update. Likewise, Poe and Freireich has been directed to refer all calls to CVOC.

The current status of the case is as follows:

Regarding the Summons to appear before the Internal Revenue Service (the “Service”) on September 12, 2008:

• Poe and Freireich obtained an extension of time until October 14^th.
• If more time is needed to complete the information, CVOC will notify counsel so they can file the appropriate request.

For those unit owners who have already received IRS notices and forwarded them to Poe & Freireich, please see the enclosure for more detailed information regarding the status of each case.” [REDACTED]

The redacted material is in the Castle Village Management Office. Shareholders wishing to know their individual status should please contact Frank Nadal.

If you have not already signed up to be represented by Poe and Freireich, we urge you to do so as soon as possible.

Your Castle Village Board of Directors