July 19, 2006 Dear Llama Owners,

From the Registrar - Jan L. Wassink and the ILR Board of Directors

re: ARI Dispute Settled

The good news this month is that the 2 ½ year-old dispute with the Alpaca Registry Inc. over their final bill from the ILR has finally been resolved. With a date for arbitration looming, the ARI suggested a last-minute mediation to try to resolve the issue. The ILR agreed and the issue was settled with the ILR receiving the amount of the original bill plus $4,000. We believe we would have received a larger settlement by proceeding with the arbitration as called for in the contract but we also believe that the additional time requirements and the additional expenses for our lawyer and the arbitrators would have negated any additional amounts received. We are thankful to have this issue behind us and excited about moving forward.

re: Lamaribbean Cruise Still Has Room for YOU

Elsewhere in this ILRe-port is more information on the Lamaribbean Cruise. We are excited that at least 120 people have already signed up for the cruise and as far as we know, the cruise line has not yet raised the rates so you might be able to come with us at the originally quoted fees if you act immediately.

re: Motivational Speaker to Guide the Llama Industry into the Future

The conference cruise program is being finalized and we have a dynamite speaker, Kevin Ochsner of Agri Business Group, Inc. (ABG). ABG describes itself as an organization "whose passion for your industry allows our teams to ask you the right questions, understand your situation, collaborate with you to create and implement ideas and trace success." Mr. Ochsner is scheduled to help us look at some of the opportunities that we have to move the llama industry forward. Come join us as we review our current status and work together to develop ideas to move forward. Our speaker has vast experience in strategic planning with other livestock registries and with numerous agricultural businesses. We want as much owner input as possible so that he can understand the particular needs and issues of our industry and can begin guiding us in positive directions for the streamlining, promoting and growth of the llama industry. Our industry is at a crossroads and we can either plod along as a bunch of individuals trying to educate the public and grow our markets or we can get excited and develop some movers and shakers in our community to raise the bar and drive our industry to the next level. The ILR is not trying to define the nature of this growth, rather, to provide an opportunity for ideas to develop with the help of a skilled professional who has no agenda or vested interest in the llama industry. Many who have heard him speak say that his insights would be helpful to any entrepreneur or business owner, so if you have family and friends coming on the cruise, they may want to sign up for the conference package just to hear his motivational messages.

Come cruise with us – www.lamaribbean.com – have a great time plus input into the direction of the llama industry!

Jan L. Wassink
and the ILR Board of Directors
Kathi McKinney , Karen Baum , Mark Smith, Sally Taylor, Sally Rucker