ISS Supports Shareholder Gutstein’s Board Nomination Again in 2011

Keweenaw Land Association, Limited (“KEWL”) shareholder Ronald S. Gutstein announced today that ISS Proxy Advisory Services (“ISS”), the leading independent proxy advisory firm, has once again recommended that shareholders support his nomination to the Board of Directors, and reject management’s request for a 300 percent increase in the number of shares authorized.

After speaking with both parties, ISS concluded that, “KEWL’s stock price is not reflective of the intrinsic value of the underlying assets. In the absence of a new appraisal, which will not be performed until 2012, and given that KEWL split adjusted share price has not increased and in fact has decreased since 2010 and acreage under management has not materially changed, there is no reason to believe the value gap has closed. In fact, in all likelihood the opposite is true.” Furthermore, ISS states “… research suggests… that companies that have registered and listing on the NASDAQ, have materially increased their average daily trading volume and trade at higher stock prices than pink sheet listed stocks like KEWL that trade by appointment, all else equal.”

After analyzing KEWL’s operating results, ISS’s conclusions support the need for an outside review. “The results show that the company’s five year average ROC [return on capital] was 33 percent lower than its closest peer POPE and 36 percent lower than the broader peer average…. On balance, based on ROC, KEWL has underperformed its peers over the last five years, further supporting the dissident claims.”

In conclusion, ISS states, “We reiterate the point made last year, that Mr. Gutstein’s background and experience in the capital markets especially as they pertain to the marketing of small, thinly traded securities may help the company achieve increased visibility in the investment community that ultimately may further narrow the value gap. Additionally, Mr. Gutstein promises to work to improve the company’s corporate governance bylaws pertaining to supermajority vote requirements and other policies that serve as entrenchment devices and are not in shareholders’ best interests. We therefore recommend shareholders vote on the dissident’s WHITE proxy card for dissident nominee Gutstein and management nominee Ayer.”

“This reaffirmation of support demonstrates the value of an outside individual raising questions and challenging management,” Gutstein said. “The current board has continued to ignore the facts and has failed to alter an unsuccessful strategy. It is time for a new voice to work with the board to close the value gap and improve corporate governance.” Mr. Gutstein went on to confirm that if elected, in order to remove any potential conflict, he would cease market making activities in the company’s stock.

KEWL shareholders are urged to vote the WHITE proxy card. Shareholder questions or information requests should be directed to Alliance Advisors, LLC toll free at: (877) 777-5613.

ISS is widely recognized as the leading independent proxy advisory firm and its recommendations are relied upon by major institutional investment firms, mutual funds and other fiduciaries throughout the country.

Keweenaw Land Association (PK) (USOTC:KEWL)
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