CYBER BAY CORPORATION

Cyber Bay Corporation (CYBR) was originally incorporated on July 6, 1989 as First Lepanto Corporation. The company changed its corporate name to Centennial City in 1996, and to Cyber Bay Corporation in 2000. CYBR is presently involved in real estate development (except real estate subdivision) and reclamation. On March 30, 1996, CYBR, Central Bay Reclamation and Development Corporation (Central Bay) and certain Central Bay shareholders entered into a memorandum of agreement which involved the restructuring of CYBR and the consolidation of certain businesses and assets of CYBR and Central Bay. The restructuring of CYBR entailed the transfer to Prime Orion Philippines, Inc. of CYBR's investments in certain corporations and the settlement of all intercompany liabilities relating to such corporations. Upon completion of the business consolidation, CYBR assumed full ownership of Central Bay, including its joint venture agreement with the Philippine Reclamation Authority (formerly Public Estates Authority) to reclaim 750 hectares of land along Manila Bay (the Cyber Bay Project) as its new property core holding. However, CYBR got into a legal battle with the government concerning the ownership of the Central Bay Reclamation and Development Corporation. The issue had also put on hold the joint venture agreement for the company's Cyber Bay Project. On August 10, 2007, CYBR filed its claim for reimbursement with the Philippine Reclamation Authority (PRA) amounting to P10.23 billion for the initial payment of all costs, losses, liabilities, and expenses computed as of December 31, 2006. Despite the nullification of the contract, management still intends to continue its operations and utilize any reimbursements that it may obtain from the PRA to fund other business and development ventures. Source: SEC Form 17-A (2008)