Shareholder Letter

Dear Fellow Shareholder,

Many of you have inquired about the direction of our company. Our past press releases seem to have created more questions than answers, so I will do my best to personally address each and every concern.

First and foremost, I would like to convey my most sincere appreciation to the business associates, brokers, and fellow corporate officers for their continued support and advice as we share this journey.

To begin, it simply isn't necessary to look much beyond our name to understand our corporate goals. PrimeHoldings is just that, a holding company. We strive to find attractive, undercapitalized companies that present an opportunity for us to acquire a majority stake, and hopefully provide a strong return to our shareholders. The asset of a holding company is the equity it holds in each of its investments. Some require more than just capital. Each scenario is different.

Having said that, I see our goal as identifying and acquiring those companies offering the greatest promise. Our job is to make certain that our portfolio companies are adequately capitalized to execute their business plan, and that we make every possible effort to provide the intangibles necessary to drive revenues and build the business. Whether that consists of consulting, management, legal, accounting, auditing, or just acting as a 'sounding board', we have the 'go-to' ability to deal with most issues.

Financing is clearly the most crucial need for incubated companies, and historically, we've succeeded in providing that to a few of our subsidiaries. When we traded on the OTCBB, we had the ability to bring institutional support to our portfolio companies. Since the PinkSheets have continued to be a haven for predatory market makers and naked shorting, the appetite for any institutional players to participate has drastically diminished.

As many of you are aware, the number of States that have exemptions from registration under Rule 504 are shrinking day by day. In fact, we currently have almost $800,000.00 available to us under the exemption, largely due to the fact that we haven't 'gone to the well' much over the past year. The problem is, the value of capital simply hasn't offset the dilution we all would share. We believe that a substantial short position exists in our market. We further believe that the plan we have in place, and are in the process of executing, will hopefully mitigate any further predatory tactics within our market.

By using our asset companies as value for acquisition into an existing entity, we've negotiated the acquisition of a corporation that will trade on an 'unsolicited' basis. Further, we've included all of the legal and accounting work required to take it from an unsolicited company, to a fully reporting OTCBB company, and then quickly (we hope) to the Archipelago exchange. The dividend our existing shareholders will receive in the new company that will hold Target, and the subsequent registration statement and anticipated listing, could, in a perfect world, leave the short sellers with a really, really big problem.

This brings us to the most recent announcement regarding our acquisition of operating oil leases. With our negotiated relationship with Barnett Shale Holdings, we can acquire substantial assets in gas and oil. Initially, we won't need additional employees, we don't need to develop technology, and there is no need for additional infrastructure. We simply invest in OPERATING oil leases, and sell oil. The more oil extracted through new technologies, including 3D imaging, and directional boring, the more profit we share. The greater the profitability, theoretically, the higher the share price. The higher the Prime shares go, with limited dilution, will allow us to continue acquiring better leases, with increased revenues, and so on, and so on.

I guess what I want to make abundantly clear is that our goal is this; to have Target be in a company as a 'stand-alone' holding, trading under a different stock symbol on a different exchange; WE (all of us) will have shares in the NEW company by way of a dividend paid to all shareholders of record of PrimeHoldings. Prime, on the other hand, will continue to trade, will work to bolster its asset base, and hopefully continue to grow to a point that we qualify to move to a more stable exchange. I believe that the current share price is artificially low as a direct result of market maker activity, and I hope to see a return to the point that we're all proud to have stayed the course.

We have made many sacrifices as officers and directors of this company, and we more than just share the discomfort many of you feel as our share price struggles. After many hundreds of hours of work, and research, we believe that the path we have chosen will reap the greatest rewards for all of us.

Again, I thank you for your continued faith and support as I do my best to run your company.

Sincerely,

Thomas Aliprandi
CEO