Ontario Court Grants Injunction to Delay Vote in

Proposed KPMG Canada Merger / Arthur Andersen Must ExtendDeadline TORONTO (ots-PRNewswire) - A Canadian court granted aninjunction to David Knight, vice chairman of KPMG Canada lateyesterday, ruling that Arthur Andersen must extend the votingperiod for its proposed merger with KPMG Canada. The ruling setsa new deadline of April 26, 1999 for partners of KPMG Canada toconsider the proposed deal before voting. "We're greatly encouraged by the court's decision. It willallow all of KPMG Canada's partners the time they need to givethis very complex proposal sufficient consideration," said PaulReilly, chief executive officer, KPMG International. "I'm confident that it is one more positive step toward theday when we can announce that KPMG Canada will remain a valuedmember of the KPMG International family. We are going to continueto have a major presence in the vital Canadian market," he added. "The court's extension of the voting deadline to April 26relieves the unfair and unrealistic time pressure imposed by theoriginal deadline of April 9 -- and enables us to reach all KPMGCanada partners with the information they need to develop abetter understanding of the benefits that remaining with KPMGwill provide," Reilly said. "In addition, an increasing number of KPMG Canada partnershave expressed their commitment to stay with KPMG, regardless ofthe vote," Reilly said. Judge J. M. Farley of Ontario Court's General Division inToronto said in his opinion late yesterday there "could beirreparable harm if the April 9th deadline is enforced by ArthurAndersen." Judge Farley said the granted injunction "would notonly allow partners the 30 day period contemplated by theexisting Partnership Agreement to reflect upon this fundamentalchange, but also to discuss it with their colleagues." David Knight, who filed the motion yesterday, told the Ontariocourt, "I am not in favor of the Arthur Andersen proposed mergerand do not believe it is in the best interests of KPMG LLP[Canada] to approve it. I intend to encourage the partners tovote against the merger." Knight pointed out that the April 9 voting deadline was set"arbitrarily" and contrary to the firm's partnership agreements,noting that Andersen provided only 12 days' notice to KPMG Canadapartners for a "complicated proposal with serious ramifications." KPMG International's member firms have more than 6,700partners and 92,000 professionals in 157 countries. KPMG's Website is http://www.kpmg.com. ots Original Text Service: KPMGInternational LLP Internet: http://www.newsaktuell.de Contact:George Ledwith of KPMG International, 201-505-3543

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