July 14, 2006 Statement About Schaffel Lawsuit

Michael Jackson Scores Big In Round 1 of the Schaffel Lawsuit and Awaits Round 2 for Accounting

Santa Monica, CA…. A jury of 6 women and 6 men turned back F. Marc Schaffel’s claims against Michael Jackson today, that Mr. Jackson owed him countless millions of dollars.

In the action, Mr. Schaffel first sought $6 million...$4 million... $3.2million, $2 million, and finally $1.5million.

In round 1, the jury awarded Mr. Schaffel $900,000. However, the jury also awarded Mr. Jackson $200,000, plus interest, for Mr. Schaffel’s fraud, conversion and breach of fiduciary duty.

Says Tom Mundell, Lead Defense Counsel, “This was a great result for Michael.

The judge divided the trial into two phases. In this first phase, the jury heard all of Schaffel's claims and one of Michael's claims. In about two weeks, the judge will hear testimony on the rest of Michael's claims against Schaffel.

The value of Michael's remaining claims exceeds the small net amount in Schaffel's favor from Phase 1 of the trial, and we are confident that when Phase 2 is concluded, the overall judgment will be in Michael's favor.”

Says L. Londell McMillan, General Counsel to Mr. Jackson, “It’s a new day for Michael Jackson. We were unwilling to pay one penny more than the amount Schaffel was owed, and the verdict proved successful. This lawsuit represents the beginning of a new approach and direction in the business of Michael Jackson.”

Contact: Raymone K. Bain