KRUSE CONFESSES ULTERIOR MOTIVE, FEAR

After months of riling up city hall, Darrell Kruse, owner and operator
of the Claremont-based medical marijuana dispensary, has admitted that
he had an ulterior motive in opening his business in Claremont. Mr.
Kruse now claims that his outrageous behavior and confrontational
style with the city was all just an act in order to get Claremont to
pass a moratorium on marijuana dispensaries and therefore block
competition from other businesses.

Threat of Competition

According to Mr. Kruse, he and his business partner, David Touhey, had
been co-owners of another marijuana dispensary in Pomona, Farm Assist
Caregivers, located at 268 San Lorenzo St., from the beginning of
2006. Mr. Kruse claims that he was pressured by his partner and
instructed "to do whatever it takes" to stop the rival business from
entering the market.

The decision to take action came after discovering that long-time
medical marijuana activist David Kasakove, who grew up in Claremont,
had applied for a business license from the city of Claremont to open
his own medical marijuana dispensary.

City records show that Mr. Kasakove applied on July 6, 2007 to open a
dispensary, called California Harm Reduction Collective. After filing
his application, Mr. Kasakove said that he visited the Pomona
dispensary and talked with Mr. Touhey about his business plans.

"I told him there was help in Claremont and if he had any problems in
Pomona, I was willing to offer support," said Mr. Kasakove.
"Apparently, instead of him seeing me as a friend, he viewed me as
competition to get off his playing field."

Claremont City Treasurer, Matthew Hawkesworth, said that the city did
not grant Mr. Kasakove a business license due to the nature of his
business. The application was turned over to the city attorney's
office to consider, as Claremont did not have any regulations in place
to allow for medical marijuana dispensaries. Records show that Mr.
Kruse officially applied for his business license on September 14,
2006, and he opened his medical marijuana shop the following day
without an approved license.

The Plan Works

On September 26, 2006, the city council unanimously voted to enforce a
moratorium on marijuana dispensaries in Claremont for a one-year
period. The reason, city officials say, was to allow the city enough
time to consider whether to allow that type of business within the
city limits and, if so, make the necessary zoning and municipal code
changes. The moratorium, which can be extended another year, will
expire in September 2007.

City records show that the city sent a letter to Mr. Kasakove on
November 20, 2006, to inform him that his business license would not
be allowed. The letter reads: "the Claremont City Council has enacted
a moratorium not allowing the conducting or establishing of such
businesses within the City of Claremont. It is for this reason your
business license application is hereby denied."

Mr. Kruse was also pressured by the city to shut down his business and
was hit with fees for operating without a license. This, however, did
not concern him because their plan to stop marijuana dispensaries in
Claremont had worked. Mr. Kruse said the two business partners could
continue reaping in profits without worrying about competition from
neighboring Claremont.

Still, the partners continued their bogus crusade for the marijuana
dispensary. Claremont city council minutes from the October 10, 2006
council meeting show that "Reverend" Touhey spoke out in support of
Mr. Kruse and "discussed a recent article in the COURIER related to
medical marijuana dispensaries and reiterated Mr. Kruse's
statements."

Partners Dissent

The trigger for Mr. Kruse's decision to come clean was sparked after
the relationship between he and his former partner began to fall apart
around December 2006. Mr. Kruse said that he began to confront Mr.
Touhey about finances and obtaining medicine to sell at his shop in
Claremont.

Disagreements between the two continued to mushroom, leading Mr. Kruse
to consult with his lawyer, Allison Margolin, about obtaining a
restraining order against his former partner.

Mr. Touhey refused to return phone calls regarding the allegations of
pressuring Mr. Kruse into opening a medical marijuana dispensery,
however Mr. Kruse's story has also been corroborated by a previous
employee of the Pomona dispensary, Matt Seaburn, and one of Mr.
Touhey's neighbors, Cheryl Emmerling.

"I've known him for a long time," said Ms. Emmerling. "He's motivated
by his own greed. He doesn't care about the patients or the cause of
medical marijuana activities. He just wants to line his pockets."

Feeling victimized and rather remorseful about the whole ordeal, Mr.
Kruse approached the city council on April 10 to offer an apology to
council members and city officials for his actions.

"It was ill-conceived. It was bad-spirited, but every moment I was
here was to antagonize you. I was asked to do it, to block another
character who was trying to do it. He applied July 7. I was told to
come up here to block it any way I could, and that's what I did," he
said. "I want to apologize to you. I understand we still have our
legal battles, but I'm sorry."

Since the split between the partners, Mr. Kruse said that he is no
longer interested in re-opening his medical marijuana dispensary in
Claremont. He also explained that he had a guilty conscience for Mr.
Kasakove, who Mr. Kruse describes as "a true soldier in the (medical
marijuana) movement." Since the Claremont moratorium, Mr. Kasakove has
been forced to search elsewhere to open his business. He is currently
in Eureka, California trying to establish a non-profit marijuana
dispensary in Northern California.

"It has turned unfortunately from when people were truly doing this
compassionately to people who are just out to make millions of
dollars," said Mr. Kasakove. "He should have gone in and had meetings
with city staff and council members and worked out any of their fears
and concerns. Unfortunately, it appears that Darrell and his partner
were just motivated by finances also."

Claremont's Plan

Two weeks ago, the city council discussed what it would like to do
with regards to marijuana dispensaries during a special council
session. Three of 5 council members, including Peter Yao, Ellen Taylor
and Linda Elderkin, stated that they were interested in making a final
decision on the future of dispensaries in Claremont before the
moratorium expires in September. Both Sam Pedroza and Corey Calaycay
felt that the city might be better off extending the moratorium,
allowing them more time to come to a clear decision.

"I am sorry that he did this the way he did. I still feel sympathy to
people who need medical marijuana, and I still think the council
should make a decision before [the moratorium expires]," said Mayor
Pro Tem Ellen Taylor.

Mayor Peter Yao said the issue of whether to allow dispensaries in
town will most likely be brought before the council before the August
break.

"The decision won't have anything to do with the personality
involved," he said. "If not Darrell, then someone will eventually come
in here and we have to decide what is best for Claremont."