There have been several events in the last weeks of significance to the investors. As we have previously reported, the guilty verdict against Osvaldo Villalobos was handed down on the 16th of May, but the full text of the document was not published until the 8th of June. On that date, the tribunal published a 1000 page document, containing 170 pages of opinion justifying their decision, and the remainder, a restatement of the original accusation and notes from the testimony of witnesses. Counting from that date, both the prosecution and the defense have 30 working days (or until July 23,2007) to submit appeals. 

As it stands now, Osvaldo Villalobos has been judged guilty of Financial Intermediation and Premeditated Fraud, and Not Guilty of Money Laundering.  Both the prosecution and the defense are entitled to appeal in order to reverse these verdicts. 

Following the initial reading of the verdict, the defense team began their preparation for the appeal. At the same time, the UCCR met with our lawyer Jose Miguel Villalobos and suggested that collaboration between the defense lawyers and himself would be ideal. Subsequently, a meeting with the defense team secured their cooperation and the blessing of Osvaldo Villalobos. 

This is a significant development for UCCR investors late in the case, because for the first time, our own lawyer will bring beneficial influence to the appeal process. We believe that Jose Miguel Villalobos, the author of the White Paper "Justice Upside Down", is eminently qualified to do so. 

Additionally, he has commented that the chances of success are good, in that the tribunal has made ample errors in law to justify a complete reversal of the verdict. Also as Costa Rica is under a Roman Law justice system, there is no sanctity or weight of precedent to any tribunal decision. A complete turning of the tables would not be unusual. 

Some conjecture, emanating from the defense team, has predicted that the appeal process will not be protracted. We shall know the results perhaps as early as the Fall. One thing is certain. The completion of the appeal, be it Guilty or Not Guilty, is the end of the legal process for Osvaldo Villalobos. The case has been vigorously defended with the intent that the exoneration of Osvaldo would become the prerequisite or foundation for the exoneration of Enrique. 

The appeal results could range from confirmation of the guilty verdict to complete exoneration on one, two, or three charges. We will have to wait and see. For the moment one thing is clear. The results of the appeal, whatever they may be, will set the stage for the next act in this drama -- the response of Luis Enrique Villalobos. The eyes of the world will turn in his direction. For the first time in 5 years, the legal landscape will remain fixed, and the initiative to plan and return investor money will rest solely with him. We wish him God Speed.

Thank you.