HAILEY VOTERS SAY 'YES' TO MARIJUANA REFORMS

Results Likely to Lead to More Litigation

Hailey's electorate approved three of four marijuana legalization or
reform initiatives in a city election Tuesday, Nov. 6.

Voter returns that came in late Tuesday night showed close voting but
approval of initiatives to legalize medical use of marijuana, to make
enforcement of marijuana laws the city's lowest police priority and
to legalize industrial use of hemp.

The initiative that failed would have mandated the city to regulate
and tax marijuana sales and to establish a Community Oversight
Committee to iron out the details for legalization.

The three approved initiatives also require the Community Oversight
Committee to work out the details for implementation. The initiatives
further require that the city of Hailey lobby other branches of
government for the reform of marijuana laws.

The taxation and regulation initiative failed by a vote of 573-674,
while the marijuana medical initiative passed by a vote of 687-581.

Hailey voters favored the police priority initiative by a margin of
637-601. The industrial hemp measure passed by 683-565.

Hailey City Clerk Heather Dawson said 1,288 voters of the city's
3,494 registered electorate turned out to vote in Tuesday's election.

Ryan Davidson, chairman of The Liberty Lobby of Idaho and the man who
got the initiatives on the Hailey ballot, could not be reached for
comment late Tuesday but said earlier that he was confident the
initiatives would succeed.

The vote on the initiatives culminated more than three years of work
on Davidson's behalf to put legalization issues before voters in the
Wood River Valley. He started the project in August of 2004 when he
presented initiating petitions for legalization to the cities of
Hailey, Sun Valley and Ketchum. All three entities denied his
petitions and a series of court actions ensued.

In September 2006, Davidson won a major victory when the Idaho
Supreme Court ruled that municipalities do not have the right to
determine the constitutionality of proposed initiatives. With that
victory in hand, Davidson renewed his legalization efforts in 2007
and successfully landed the four initiatives on this year's Hailey
general election ballot.

He continues to work his proposed initiatives in Ketchum and Sun
Valley and hopes to have them on ballots in those cities as early as
the primary elections in May of 2008.

His work in the Wood River Valley is part of a larger grassroots
effort to reform marijuana laws statewide.

Meanwhile, the Idaho Attorney General's Office has declined to say
what it will do if any of the Hailey initiatives pass, but issued a
statement last week reminding voters that possession of marijuana is
a crime under both state and federal law.

City Attorney Ned Williamson predicted prior to the election that the
city will be subjected to future litigation if the initiatives pass
and said that the costs could be high for Hailey taxpayers.