After 5 years at the helm, I am announcing today my resignation as the
longest serving Category Chairman in the history of APBA Offshore. Gordon
Kraft will serve as interim Category Chairman until a permanent successor is
named. Jim Poplin shall remain as Vice President of National Race Operations
and assume most of the day to day operations of the organization.

For the past two years I have wanted to reduce my involvement in the daily
operations of the company so I could focus more of my time on securing
additional sponsors, and executing our very aggressive business plan. With
the favorable conclusion of the APBA litigation, a new and improved license
agreement in place, our GM relationship secured through the 2005 season, and
the successful transition from the old technology based rules model to our
current competition based model essentially complete, now is the right time
to finally make that move. I am proud of everything we have accomplished the
past 5 years but I am proudest of our dedicated staff whose tireless
commitment to the racers and to the sport is what is responsible for
virtually everything we have achieved. There are no finer people on the
planet as far as I am concerned.

The 2003 season has been a year filled with many things for all of us who
love offshore powerboat racing. It has been at times exciting, challenging
and difficult, but despite the challenges and difficult times the “show went
on” and the race competition was better than ever as was our television
product.

We experienced the highs of securing additional corporate sponsorships and
the lows of losing a major longtime sponsor.

We have seen outstanding results from our taking huge risks such as with the
formation of our Super V class, and the not so great results from our
decisions relative to other areas of the business, particularly in the
manner by which we communicate to our teams and sponsors.

Nevertheless, together, we have built an incredibly exciting racing product
that is growing in popularity and profile. We have made huge, paradigm
shifting changes not only in our sport but in the entire marine industry.
And while we have made great strides in many other areas over the past four
years, our business remains in its infancy, and our budget remains tight.
Any break in the coalition of contributors (e.g. APBA Offshore LLC., Racers,
Sponsors, Promoters, and Volunteers) can threaten to erase all the good we
have accomplished together, much faster and much easier than the time it
took us all to build. So we must be careful going forward.

Make no mistake this is a business enterprise. As such, all participants are
entitled to receive value for their efforts including our stockholders. Have
there been mistakes made? Of course there have and we certainly have made
more than our fair share. Regardless, our heartfelt passion for the sport
and the best interests of the collective enterprise, including our racers,
sponsors, fans, promoters and volunteers, have been our guidepost.

Nevertheless, hindsight is always 20/20 so we ask you to judge us by whether
the positive results of our efforts outweigh the mistakes and wrong
decisions. In short, is the sport of APBA Offshore Powerboat Racing better
off now than 5 years ago? WE certainly believe so and we hope you do too.

The future is bright for the sport and the real racers and sponsors who know
what it takes to create a legitimate motorsport entertainment business. I
look forward to helping the new leadership accomplish their future goals and
objectives for the sport. Take care. Best of luck and safe racing to all who
compete in Orange Beach!!

Michael