COURT RULES DISPENSARIES ILLEGAL

LANSING -- The Michigan Court of Appeals ruled Wednesday that
marijuana dispensaries conducting patient-to-patient sales are
illegal and can be shut down under Michigan's public nuisance law.

The case stemmed from a Mount Pleasant marijuana dispensary,
Compassionate Apothecary, that was challenged by Michigan Attorney
General Bill Schuette and Isabella County Prosecutor Larry Burdick.

According to Schuette, the marijuana club was violating the Michigan
Medical Marijuana Act (MMMA) by allowing profits from marijuana
sales, patient-to-patient transactions and possession of an illegal
excess of medical marijuana. The club was profiting with a 20 percent
commission on patient-to-patient sales of marijuana.

Through the ruling, the Court established the MMMA does not legalize
marijuana, authorizes use in "limited circumstances," "medical use"
does not include the sale of marijuana, the MMMA does not authorize
dispensaries and lower courts can infer that a dispensary's purpose
is not to alleviate a debilitating medical condition.

"This ruling is a huge victory for public safety and Michigan
communities struggling with an invasion of pot shops near their
schools, homes and churches," said Schuette. "Today the Court echoed
the concerns of law enforcement, clarifying that this law is narrowly
focused to help the seriously ill, not the creation of a marijuana
free-for-all."

Schuette will send a letter to Michigan's 83 county prosecutors
explaining that the ruling clearly empowers them to close
dispensaries and provide instructions on how to file similar nuisance
actions to close dispensaries in their own counties.