Tri-National Announces Joint Venture and Financing for Portal Del Mar Development

Business Wire, March 28, 2001

Business Editors & Real Estate Writers

SAN DIEGO--(BUSINESS WIRE)--March 28, 2001

Tri-National Development Corp. (OTCBB:TNAV) announced today that through its Mexican subsidiary, Tri-National Holdings, S.A. de C.V., the company has executed a joint venture and financing agreement with respect to its Portal Del Mar property.

Portal Del Mar is a 123-unit 2 and 3 bedroom condominium development set on 5 acres overlooking the Pacific Ocean in Baja, Mexico. Tri-National purchased Portal Del Mar in 1999, with a portion of the purchase price financed by a privately held real-estate financing and development group out of Texas. The company has executed a joint venture agreement with this group under which the outstanding loan balance will be converted and equally important, additional financing to complete the project will be provided in exchange for a one-third participation in the future cash flows of the project, which is projected to exceed $10,000,000.

The project is located 6 minutes from the heart of Rosarito Beach, minutes from the 20th Century Fox film studio where "Titanic" was filmed and from the famous Rosarito Beach Hotel. The 123 ocean view condominiums are in various stages of construction, with some 46 units virtually completed. Tri-National plans to add a clubhouse, tennis courts and a spa and pool during its build-out of the project. The company is engaged in ongoing market research to determine optimal marketing and pricing strategies for the project.

Michael Sunstein, president and chief executive officer, said, "This is a major step forward for the company, and indicative of our refined business plan and objectives. We have been working extensively over the last few quarters to identify, pursue and develop strategic partnerships with major financing and development companies to help bring in the financing and expertise necessary to unlock the tremendous values in the properties that Tri-National owns or controls. Just as with Portal Del Mar, our intent in all these explorations is to reduce or eliminate our short term financial obligations and obtain the funding and expertise required to realize the full potential of these projects. This has been a long and sometimes difficult path as we have worked to forge agreements which will benefit both our potential partners and Tri-National shareholders, but we are now seeing the effort yielding results and are proud to be able to announce our first completed agreement. We hope to be able to announce additional such agreements of even greater scope over the coming weeks. We have appreciated the patience of our shareholders as we have worked toward achieving our vision of Tri-National as a well-financed and highly profitable development company with tremendous real estate asset values and income streams both in Mexico and the U.S."

Tri-National Development Corp. is an international real estate development, sales and management company.

This release contains forward-looking statements that involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors.