Knight & Carver YachtCenter, San Diego-Based Boat Builder & Boat Repair Company, Names Tim Kelley as Executive Vice President/General Manager

SAN DIEGO--June 1, 2004--Knight & Carver YachtCenter has announced the naming of Timothy C. Kelley to be the boat-building and boat repair company's executive vice president/general manager. Kelley brings an extensive background in business and financial management in the construction engineering, manufacturing, technology and manufacturing industries. He has been associated with Knight & Carver since 2001 as a consultant and has a long-time personal background in yacht racing and boating.

In his new role, Kelley will be responsible for managing and leading the company's operations and business development departments. "With Tim's addition to our company, we now will benefit on a full-time basis from his knowledge, experience and expertise in streamlining our production processes and, of equal importance, providing hands-on leadership to all facets of our operation," said Sam Brown, Knight & Carver's president/chief executive officer. "This is an exciting period of growth for our company. Starting now, we will be focused on improving our organizational effectiveness, efficiency, productivity, performance and customer satisfaction. We believe Tim has the background and management skills to make Knight & Carver one of the most successful companies in our industry."

In addition to boat building and repair, Knight & Carver also builds and repairs wind-turbine blades for wind farms around the United States.

Most recently, Kelley served as chief operating officer of Construction Bidboard Inc., a San Diego-based start-up Internet data service provider for the construction industry. Since he formed his own consulting firm TMK Inc. in 1997, Kelley has consulted with a wide range of clients in the construction/development industries, as well as serving as a periodic consultant to Knight & Carver. In addition, Kelley serves as president/CEO of ARG Machining Inc., a heavy-machining company in Milwaukee.

A U.S. Naval Academy graduate who also earned two masters degrees from Stanford University (in engineering economic planning and construction management), Kelley spent 25 years in the U.S. Navy before retiring as a Navy Captain in 1990. At the time of his retirement, he was in charge of the Navy Public Works Center in San Diego.

Following his Navy career, Kelley moved to the private sector, where he spent 10 years (1990-2000) with Nielsen Dillingham Builders, a San Diego-based construction/building firm, in a variety of executive roles.

From 1997 to 2000, Kelley served as chairman of the State of California Regional Water Quality Control Board, San Diego Region. The board is responsible for the administration and enforcement of the Clean Water Act.

A long-time member of the San Diego Yacht Club, Kelley is a native of Milwaukee and resides In La Jolla, Calif., with his wife Marie. His duties at Knight & Carver begin immediately.

About Knight & Carver YachtCenter

Located on San Diego Bay with a workforce of 175 employees, the company builds and repairs vessels for private and commercial use. Its specialties are custom-built luxury yachts and large commercial passenger vessels. The repair yard boasts one of the largest marine Travelifts (330-ton capacity) in the United States. In addition, Knight & Carver constructs and repairs wind turbine blades, utilized world-wide to create renewable energy objectives. The company's total 2003 revenues totaled $12 million. In 2002 and 2003, Knight & Carver was cited by "Inc" Magazine and Harvard Business School as one of the nation's top 100 inner-city businesses.