The Headlands Foundation Annual Benefit Wine Auction

March 12, 2008

Dear Friends, I am writing to inform you that The Headlands Foundation will not be holding its annual Benefit Wine Auction this year. The Headlands Foundation has hosted a very successful fundraising effort for many years and we wish to thank everyone for their support.

I feel that 2008 simply is not the year to hold this fundraising event. We are not going away. The Headlands Foundation continues to support great charitable organizations in our community. I also plan to continue to financially support the Headlands Foundation. The Foundation plans on hosting some type of fundraising event in the future.

During the last year, many people may have changed their e-mail address. Please feel free to forward this e-mail to anyone who may have some interest in the Headlands Foundation. Thank you for your past support,

Peter T. Paul

Headlands Foundation  

~ phone - 415-479-9700 or 415-446-2775

~ email - wineauction@paulfi.com

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About the Headlands Foundation

The Headlands Foundation was created by Peter T. Paul in 1995 as a 501(c)(3) tax-exempt organization. The Foundation primarily supports mid-size charities whose focus is housing for children and their families, which have a strong volunteer spirit, and where our help can make a big difference. Our Annual Benefit Wine Auction is the principal outside fundraiser. Since the Foundation’s humble beginnings, we have donated almost $4 million to many worthwhile programs, mostly in the Napa and Sonoma wine country. All expenses of the Annual Wine Auction are underwritten by Peter Paul and Paul Financial. This permits us to give 100% and more of the money raised to go directly to charity.

The work of the Headlands Foundation can only be accomplished through the active commitment of the companies and individuals who participate not just in this auction but who are generous to us throughout the year. Peter Paul also owns Grove Street Winery and donates wine regularly to charity dinners, charitable groups and non-profit organizations. Peter’s newest brand, PETER PAUL WINES carries this mention on the back label: “A portion of the revenue from the sales of this vintage goes to the Headlands Foundation, committed to charitable causes in Northern California.”

The Foundation has also been successful at promoting community involvement through the use of challenge grants. This allows us to leverage our funds and stimulate additional funding for worthwhile projects, some of whom are: Napa Valley Community Housing, Music for Mental Health, Grace Family Foundation, Community Institute for Psychotherapy, Napa Valley Health Care, Napa Valley and Marin Symphonies, Sunny Hills Children’s Garden, Redwood Empire Food Bank, Family Support Center, Jewish Community Free Clinic of Sonoma, Marin Family Services.

Owner and Chairman

Peter T. Paul is the owner and chairman of Grove Street Winery, which he purchased in 1999. In addition, he is the President of Paul Financial, LLC, a mortgage banking company he founded in 2003. He is also Chairman of the Board of the Headlands Foundation, a non-profit organization he began in 1996.

Peter T. Paul has more than 30 years experience in mortgage banking and financial services. Ernst & Young recognized him in 1999 as Northern California's Financial Services Entrepreneur of the Year. Mr. Paul founded Headlands Mortgage in 1986, which, after a decade, became one of the premier wholesale mortgage lending institutions in the country. After leading Headlands through a successful IPO in 1998 that raised more than $110 million for the company, Mr. Paul negotiated the subsequent merger with GreenPoint Financial Corp. The merger was valued at approximately $475 million and was the largest transaction in Marin County, California, history.

The ownership of Grove Street Winery reinforces his philosophy of making money while having fun. Grove Street is focused on super-premium, award-winning, limited production Sauvignon Blanc, Chardonnay, and Cabernet Sauvignon. In 2005 he released his first super-premium reserve wines, and the only wines that carries his name, the PETER PAUL merlot and the PETER PAUL Cabernet Sauvignon. Mr. Paul, who is a gourmet cook and loves to entertain, is delighted to have Grove Street wines on his table.

In addition to the foundation, Mr. Paul sponsors worldwide events each year including the Russian Arts Foundation, and the Russian National Orchestra's recording of Wolf Tracks narrated by Sophia Loren, Bill Clinton and Mikhail Gorbachev. Proceeds from the sale of Wolf Tracks benefits environmental, wildlife, arts and health organizations around the world.

A member of the Board of Directors of the University of New Hampshire Foundation, Mr. Paul donated $10 million in 2001 to fund two chairs, one in Space Science and another in Developmental Psychology. The latter, the Samuel E. Paul Chair, was established in memory of Mr. Paul's father, a highly regarded physician who practiced in Troy NH for 30 years.

Mr. Paul is devoted to using his resources toward improving the quality of life for as many people as he can reach; professionally, in his vision of making homeownership a simple and straightforward process; through his philanthropy; and in his dedication to enjoying life and enriching it for others.

Educated in his home state of New Hampshire, he received his BA at the University of New Hampshire and his MBA from Boston University.