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Katun Announces Plea Agreement with U.S. Attorney's Office

11 Feb, 2004

Katun Announces Plea Agreement with U.S. Attorney's Office

MINNEAPOLIS—Corporation announced today that the company has reached a plea agreement with the United States Attorney's Office for the District of Minnesota.

The agreement settles all pending federal charges against the company relating to a federal government investigation of the actions of former company executives. By terms of the agreement, Katun will plead guilty to 12 counts of fraud relating to procurement of competitive pricing information, use of reduced-fare airline tickets, and the handling of certain customer credit write-offs.

Under the agreement, Katun agrees to pay a total of $11 million in fines, restitution or forfeiture. Katun expects the entire amount to be paid by former Katun shareholders in accordance with terms of the purchase agreement at the time of the sale of the company to new owners in 2002. The company therefore expects the fines to have no material financial effect on Katun or its operations. The United States Department of Justice agrees that it will not prosecute or otherwise seek additional federal charges against the company.

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