1. Most importantly, this decision by Judge Madenspacher represents a victory for County taxpayers.

2. The Court considered two issues. The first issue was the Authority/Penn Square Partners request to have the guaranty declared valid. The Court refused. The Court acknowledged there is a very substantial legal issue concerning the validity of the 2003 guaranty.

3. The second was a request to place a gag order on the Commissioners to stop them from talking about the invalidity of the guaranty and possible changes in the hotel tax, because the Commissioner discussion of these issues placed a cloud over the intended financing. The Court refused. The Court acknowledged there is a very substantial cloud over the financing in the form of the question of the validity of the guaranty. That cloud existed before, and is now stronger than ever in light of the Court's decision acknowledging this substantial question.

4. Aside from allowing the Commissioners to continue to fulfill their duty of public discussion, the only impact of the decision is to preclude the Commissioners from acting now on the resolutions so as to negate the guaranty prior to the final hearing. We believe the testimony was sufficient to establish the guaranty is invalid because of substantial deviation from conditions established by the Commissioners in 2003 that had to be met prior to delivery of the guaranty. However, we respect Judge Madenspacher's acknowledgment that this is a substantial legal issue on which he wishes to defer ruling until after the final hearing. Very importantly, the Judge left open whether the Commissioners will be permitted to implement the resolutions and terminate the guaranty after the final hearing.

5. Another important point is that the Authority provided testimony in court that if the project financing proceeds, it will fix the defective financing documents to require that hotel room tax be applied first to debt service - before use to fund Authority operating deficits. This was a very important promise made by the Authority to the public and the Commissioners prior to delivery of the guaranty. This promise was breached by a subsequent decision to draft the financing documents so as not to require application of the tax first to debt service. Obtaining this concession in court, documented in Judge Madenspacher's decision, was a very important victory for Lancaster County taxpayers.

6. The Court respected the right and duty of the Commissioners as government officials to express their views concerning the Convention Center project, Authority wasteful operations, Authority misrepresentations to the public, the need for public accountability by the Authority and Penn Square Partners, and the need for taxpayer protections. The Commissioners will continue to fulfill this public duty.