OPERA PACIFIC
Orange County, California's Resident Grand Opera Producing Company

Financial Position Dramatically Improves During 2006-2007 Season

Strategic planning launched with funding through major grant from James Irvine Foundation

Carmen has highest per show box office gross in Opera Pacific history

Opera Pacific Foundation Formed

Robert C. Jones, President and CEO of Opera Pacific, announced at the Annual Meeting yesterday that the financial position of Opera Pacific has dramatically improved during the past fiscal year - so much so that “Opera Pacific had a significant operating surplus following the 2006-2007 season, the best place that the company has been in recent memory and certainly since 2001.

“Opera Pacific has extraordinary leadership,” said Jones. “Our Chairman Paul Musco offered a $2 million challenge grant that was not only matched, but exceeded with new and increased gifts totaling $2.3 million from fifteen donors. The commitment of Paul and Marybelle, at a critical time in the life of the company, inspired others to provide exemplary support of their own.”

“As a result, Opera Pacific faces its future for the first time in a long time with a sense of real optimism and the ability to finance its activities. The entire community benefits from the leadership and generosity of the Muscos, many generous donors at all levels, and the Board of Directors.”

Much of the new financial stability of Opera Pacific comes from a business plan that Jones developed when he first arrived in the fall of 2004 - with the five-year goals of “stabilize, sustain, and grow.” At that time management and the Board had to quickly stabilize a company that had been incurring annual operating deficits for several years: reducing costs, cutting back on staff and administrative expenses, and reducing the number of annual productions -- in order to keep artistic standards high for all remaining operas.

Significant strides to sustain the company came next through a plan for long-term debt reduction and adoption of strong fiscal control standards and practices maintained by the Board. The company is now poised for growth in the form of added productions, progressive and prestigious programming, and new offerings of smaller form music drama in new venues and educational formats to increase community participation. Growth, however, is dependent on increased revenue from both ticket sales and donations.

Jones said, “The Musco Challenge and successful match has been a cornerstone allowing us to announce these improved financial results today. The timing of this meeting, following on the triumph of a season-opening performance of La Bohème last Wednesday that wowed the audience, fills us with optimism and momentum for the future. It is exciting to turn our thoughts ahead - to The Magic Flute and Susannah, the West Coast Premiere of one of the best and most often performed American operas ever written. Then to next season with The Grapes of Wrath and Salome, highlighted by Deborah Voight's only regional operatic appearance, and then to celebrating the 25th anniversary of Opera Pacific in 2010-2011 with true blockbuster events to be announced.”

In addition to the positive financial results, Robert Jones outlined continued progress in strategic planning. Opera Pacific has engaged NP Strategies, a highly regarded planning organization from San Diego, to help it undertake an extensive review of Opera Pacific's role in the Southern California community as curator and creator of music drama.

NP Strategies is helping Opera Pacific to identify and plan for its role as a strong community resource, further development of its governance structure and effectiveness, and alignment of the company with the growing needs of an evolving population. Support for this capacity-building initiative is made possible, in part, through a major four-year grant from the James Irvine Foundation, awarded to Opera Pacific through a competitive process.

Opera Pacific also announced the formation of the Opera Pacific Foundation, for the purpose of generating and managing a new endowment for the company and to provide arms-length stewardship for restricted major gifts. “There are many forward thinking community leaders who recognize the need for a permanent endowment to secure the future of Opera Pacific as a pillar of the cultural maturity of Orange County, which takes pride in its reputation and quality of life,” said Jones.

“The Opera Pacific Foundation provides additional security that funding for the future will be segregated and independently managed. A strong endowment is the next - and perhaps most important - cornerstone for any institution that is financially secure and ready to grow. It is needed to keep pace with the ever-increasing need for educational offerings, continually elevated standards of artistry, and the technological advances needed to deliver arts to ever evolving consumers.”

The company also achieved its highest gross per performance revenue for its 2006 production of Carmen, featuring the farewell performances of the international star, mezzo soprano Milena Kitic. Ms Kitic, an Orange County resident, was among the newly elected Opera Pacific Board of Directors.

ELECTION TO THREE-YEAR TERMS - BOARD OF DIRECTORS
Karl Bergstrom
Jay Kunkle
John Dunbar*
Carlos Mollura*
Martin Hubbard
Mark Nielsen*
Robert C. Jones
Barbara Roberts*
Dee Kerrison
Clarence Turner
Gail Kirwan
Fillmore Wood
Milena Kitic*
o Inaugural term

OFFICERS
Sebastian Paul Musco, Chair
David Moore, Vice Chair
Beverly Spring, Vice Chair
Dag Wilkinson, Vice Chair
Fillmore Wood, Vice Chair
Connie Spenuzza, Secretary
Patrick Dirk, Treasurer
Robert C. Jones, President & CEO
Dawn S. Reese, Assistant Secretary & Assistant Treasurer