(OTCBB: PLMA) Eric David Interview With Steve Bonenberger of Palomar Enterprises Inc.
Kristin Huffner,Public Relations analyst and consultant for Eric David & Sons, Inc on site interview with Steve Bonenberger Of Palomar Enterprises Inc.



Eric David & Sons: Will you introduce our readers to your management team?



Steve Bonenberger: Our CFO is Brent Fouch and his background is in consulting with companies on growth and capital structures. My name is Steve Bonenberger and I am the President and CEO. My background is in consulting with companies in the areas of product development, placement, and corporate strategies for growth. When Brent and I assumed our management positions, we were determined to build a company that could prosper in the Southern California real estate market.



EDS: Can you describe the current potential of the Southern California real estate market and where Palomar Enterprises fits in to it?



SB: The outlook for valuation is strong. Many people are predicting a retreat from the current valuations. For the last five years, the gains have been hard to explain, however, we are very confident that the Southern California real estate market will maintain its values. However, if we begin to see a slide in valuations, our company will still have a strong presence as we generate commissions on both the buy and the sell side of real estate transactions in both good and bad markets and we will focus more of our energies and attention upon serving the refinance and investor marketplace.



EDS: Can you describe the type of real estate Palomar Enterprises works with?



SB: Our focus is mainly in the residential market. We work with buyers, sellers, and investors. Although we have successfully completed a few commercial transactions, our focus is the residential market.



EDS: Can you give our readers an example of any recent success stories or accomplishments the company has had?



SB: We have just completed and reported upon the second largest quarter in the history of the company and the quarter represents the largest quarter ever in earned commissions. Quarter by quarter since we began, the company has seen increased sales from the previous reporting period. While we do not know if we can sustain that type of growth, it is our intention to continue to increase our market share and subsequent sales.



EDS: Can you tell us of any major projects or sales that may be in the works?



SB: Our business is determined in part by the number of active listings in place. Currently, the company has the largest inventory of homes for sale in its operating history. The reason for this is that we continue to expand both our marketing and our independent agent efforts.

Per the company’s stated intention, we have added additional sales people in the past 30 days. The company looks to continually add seasoned professionals in the near term.



EDS: What was last year’s income and what goals have you set for the next few quarters?



SB: Last year, the company posted revenue in excess of $700,000. This year, the company is seeking to at least post one million dollars plus in revenue.



EDS: Are you currently seeking financing, if so, how much and what type?



SB:  The Company is currently evaluating several financing opportunities that could bring up to five million dollars in operating capital. As these funding arrangements become more formalized, the company will make the appropriate and timely disclosures of such events.



EDS: How many independent agents are currently working with the company and how many full-time employees do you have?



SB: The Company currently has five agents plus a cooperating transaction coordinator. In addition, the company has three full-time employees.



EDS: Can you describe the company’s current assets?



SB: The Company purchased a Class A piece of prime commercial real estate which it has extensively renovated. The first floor of the facility houses its real estate services and home loan origination groups. The facility is well-designed to fully serve the needs of both the company and its clients.



EDS: What are the current holdings of the management team?



SB: The two principals of the company each hold a small number of common shares and 4.5 million shares of Preferred Series A.



EDS: What opportunities are available for an investor interested in Palomar Enterprises?



SB: The near and long-term prospects for our company are good.  Given the provisions that the real estate market remains strong, the refinance and purchase markets continue to grow and the company’s ability to secure adequate funding are the key components to the future growth and higher valuation.



EDS: Is there anything you would like to add or to say about the company?



SB: In the past two years and counting, the company has been able to establish a solid beachhead in the Southern California real estate marketplace. This is a highly competitive and potentially profitable environment. In the next two years and following, the company will look to leverage the work and accomplishments that it has secured thus far. What this can mean for shareholders is the potential for increased value over time.





Interview conducted at the Palomar Enterprises Offices in Carlsbad, CA on 25 August 2005. Interview conducted by Kristin Huffner, an independent consultant for Eric David & Sons.



Please view the EDS discaimer for PLMA here

2004 © Eric, David & Sons, Inc. All Rights Reserved.

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