Sunday, January 13, 2008

Black Book De;ay

EAST MIDTOWN PLAZA
HOUSING COMPANY. INC.

319
EAST 24th STREET NEW YORK, N.Y. 10010 TEL (212) 679-4342
FAX (212) 689-7635
To: Shareholders
From: Jerry Fox, President, Board of Directors
Date: January 11, 2008
Subject: Black Book Status
As you are aware, in late November the Board of Directors postponed EMP's annual meeting and elections normally scheduled for mid December. This action was taken by the Board in anticipation of receiving the Black Book (the official offering plan accepted by the New York State's Attorney General.)
EMP's attorney had informed us in November that acceptance of the red herring by the AG was imminent. Our attorney had indicated that information obtained from the AG's office was that the Red Herring and the Black Book would be accepted and issued within a matter of days or weeks at the most. We relied on the information made available to us by our attorney.
It is now several weeks later and our attorney has the same information from the AG's office. The information is that the Black Book will be issued imminently. It is now eight weeks since we heard the original story and we cannot obtain any commitment from the AG.
Both the Board and our attorney have no ability to speed up this process. It is solely up to the AG's office. We have asked our attorney to try to expedite the process. He has not been able to obtain a firm commitment from the AG's office on when they will accept the Black Book.
The Board postponed the election in the expectation that EMP shareholders would discuss the merits of the black book and vote on privatization without being distracted by voting for Board members. Obviously this was not to be.
The Board has decided that the vote for Board members should proceed. We cannot continue to hold our breath waiting for the AG to accept the Black Book. The business of EMP must continue.
The Board hopes all shareholders understand our intentions. Shareholders will shortly receive formal notice of the Annual Meeting, Candidates Night and Election Day which will be held on February! 1, 12 and 13.

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