UMDA Chair Denounces Sham Suit Linked to Convicted Criminals

SAIPAN, M.P., Jan. 21 /PRNewswire/ — Chairman Jose Lifoifoi of the United
Micronesia Development Association (“UMDA”), through his attorneys David Lujan and Edward Arriola, filed a motion in Superior Court for the Commonwealth of
the Northern Mariana Islands yesterday to dismiss claims filed against
Chairman Lifoifoi and other UMDA directors by companies affiliated with Robert
Pfaff and John Larson. Robert Pfaff and John Larson are convicted felons who
UMDA brought suit against in 2007. Pfaff is facing another criminal trial in
New York later this year under a second indictment for misusing UMDA accounts
and assets for personal gain.

Chairman Lifoifoi, former Speaker of the House of Representatives, stated,
“I’m outraged by the obvious tactics of these convicted criminals to smear me
and my fellow directors. The claims against me and the other UMDA directors
are totally false. They accuse us of the embezzling money that we deposited
with the Court to decide who is entitled to it. They know where the money is
and that it is even earning interest pending the Court’s decision!”

Chairman Lifoifoi explained, “After UMDA filed this suit, the defendants
launched what they called an ‘assault on Saipan’ to secretly remove $5 million
from accounts here in Saipan. We stopped them, got an injunction, and placed
the money in court-controlled accounts. Now defendants have the nerve to sue
us and say that we stole it because we kept them from taking the money and
fleeing Saipan. If we allowed them to do that I doubt that we would ever see
them or the money again. The money is now safe and secure in a court-
controlled account. I know that the court and the people of the Commonwealth
will see the attacks by the defendants for what they are — harassment and
defamation of me and my fellow directors.”

Chairman Lifoifoi continued, “I have spent my entire life serving the
people of the Commonwealth. There is nothing more important to me than my
reputation in my home. These people know that, and even though they are trying
to scare me by threatening to ruin my reputation, I will not be intimidated
from doing the right thing for the benefit of the shareholders of UMDA. It is
my duty and responsibility.”

About UMDA

UMDA was founded in 1966 in Saipan. Over the years, UMDA has been
involved in a wide range of businesses, including airlines, cable systems,
shipping, and resort properties. UMDA’s shareholders include the government
or governmental entities of the CNMI, Palau, Federated States of Micronesia,
and thousands of individual Micronesians and their families. In December 2007
UMDA announced the purchase from JAL Group of the Hotel Nikko Saipan, a
313-room luxury hotel in Saipan.

SOURCE United Micronesia Development Association