Statement of Stanley S. Arkin, Issued on Behalf of

The following statement is being issued by Stanley S. Arkin, on Behalf of Konstantin Kagalovsky and Natasha Kagalovsky: "In the past week, there has been a series of articles in newspapers around the world reporting on investigations into alleged money laundering activities involving institutions and individuals primarily in Russia and the United States. "Konstantin Kagalovsky and Natasha Kagalovsky not only believe that the various investigations are appropriate, they support inquiries of this nature, which are absolutely essential to preserving the integrity of our financial markets. Money laundering cannot be tolerated and vigorous steps must be taken to stop it. "Konstantin and Natasha have believed that it would be inappropriate to comment publicly while the investigations were in progress. Unfortunately, by not doing so, they have become the focus of highly unfair press coverage. This coverage, which has been based on innuendo, rumors, selective and irresponsible leaks from U.S. governmental sources and disingenuous 'guilt-by- association' assumptions, has been very hurtful to Konstantin and Natasha, neither of whom have been accused of any wrongdoing -- either formally or, to the best of our knowledge, even informally. "Therefore, Konstantin and Natasha wish to state unequivocally that they have never been involved in money laundering in any way, shape or form. Nor do they have any knowledge of such activity. We are highly confident that, at the conclusion of these investigations, this will be abundantly clear." ots Original Text Service: Stanley S. Arkin of Arkin Schaffer & Kaplan LLP Internet: Contact: Stanley S. Arkin of Arkin Schaffer & Kaplan LLP, 212-333-0208, for Konstantin Kagalovsky and Natasha Kagalovsky Company News On- Call: or fax, 800-758- 5804, ext. 566035

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