Most of you have received proxy materials from a group calling itself the "Alliance for the Future of CIRI," a group which includes Bob Rude and Roy Huhndorf. My remarks this month will focus on my feelings about this group and some of the charges it is leveling. I am especially concerned in regard to their allegations that CIRI has "failed to demonstrate its ability to make high quality, profitable investments" and their complaint about so-called "extravagant expenditures."

The fact is CIRI is in the midst of the greatest financial success in its history. The company recently made the largest shareholder distributions it has ever made. Earnings have never been higher. The company's assets, even after those distributions, top $966 million. We have very little debt relative to our assets.

The critics also make much of the company's business expenditures, especially those related to business travel and entertainment. It's easy to criticize company expenditures, but I believe any neutral review would show that CIRI's expenditures are not extravagant. CIRI's spending in these areas is undertaken for business-related purposes, and is, we believe, beneficial to the company in its present and future business relationships.

Charges like these have been made before, but never by Roy Huhndorf, who was himself the subject of similar, and equally untrue, charges by Mr. Rude and others in the past.

For many years, Roy Huhndorf was my mentor and my friend. I thought of Roy as a statesman who rose above the political fray. It's a sad day for CIRI and for me to see Roy align himself with those same people who accused him during his 20-plus years as president of the same things he is accusing us of today. I find it hard to put into words just how disheartening it is for me to see Roy in partnership with Bob Rude, a man who Roy himself fired years ago.

I understand from talking to members of CIRI's Board of Directors that Roy attempted to get on the Board-endorsed slate for this year's election. I learned that Roy was not selected for the slate because the board preferred to include on the board-endorsed slate some shareholders with fresh ideas and new perspectives. The board selected the group it felt were the best suited to serve. Sadly, I have been told that Roy told board members he would run a campaign challenging the Board if he were not guaranteed a place on the Board-endorsed slate, and that appears to be what happened.

I am deeply disturbed that these events are taking place after CIRI has just completed such a phenomenally successful year and when our future is, in my view, bright. At a time when CIRI's accomplishments should be a source of pride, we are seeing mud slung our way.

I am not against people running dissident campaigns for the board. Being challenged can be a good thing, and it makes management and the Board of Directors look even harder at the many business decisions we have made and those that we are contemplating for the future. The only thing I ask of dissidents is that they tell the truth. Don't embellish the facts to suit your case. And don't make statements that inflame people in a destructive rather than a constructive manner. Those of you who know me - and many of you know me well - understand that I don't mind a challenge from anybody. I'll listen to you and I respect you and your right to disagree with me.

I'm sure that a lot of you are as confused as I am, but I want to assure you that the facts will be borne out over the coming days. I thank you for the faith you have shown in CIRI's Board of Directors and management over these many years. I hope you will take the time to review all the information before making your decision about those for whom you will cast your votes.

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