<h4>325 Starting Lu Corporation''s Downfall - Part 4</h4>


    Wednesday, continued …


    Yao Tan continued speaking, "However each of us, and thepanies that we represent, have for a period of time had significant concerns about involvement with Lu Corporation.We have all found, particrly in rtion to property development projects where we have been involved.Some of us have seen smallerpanies bullied and manipted into forcing Lu Corporation to bing involved in the projects."


    "Without naming whichpanies, two of us have been informed by different contractors involved in projects that Lu Corporation informed them that unless they ensured that Lu Corporation was the lead partner in developments, Lu Corporation would destroy them.In one case, again the development will not be confirmed, Lu Corporation used such tactics to be the lead developed without the risks for the project, and yet for the management of the development continue to receive fifty percent of its profits."


    "Such tactics, while notmon have been tolerated as a business tactic as ultimately the position thatpanies such as those which all of us here represent have made a decision.Business wise we could have refused to submit to their actions, but there were numbers of smallerpanies involved, who neither had the power or the ability to survive what Lu Corporation would do to them.They werepanies and businesses that had some importance to other projects where they were involved in with us, separate from those involving Lu Corporation."


    "Being good corporate citizens, means that while we willpete and strive to achieve our corporate goals, we will not use the power that we have due to our size or expertise in areas to destroy others.Lu Corporation, and its CEO have demonstrated in the recent past the tendency to do so, which has concerned us all in different ways."


    "These concerns, had prompted eachpany or group represented here prior to Madam Hou''s assault to conduct our own investigations regarding our involvement with Lu Corporation on various projects.Some of those preliminary investigations resulted in further detailed investigations in variouspanies, which we will not name, which resulted in the conclusion that Lu Corporation was engaged inmercial spying, either through cing people loyal to in into positions within ourpanies or through intimidation and ckmail."


    Yao Tan paused for a few seconds to let the impact of what he had to say sink in.He could see, in some of the members of the pressplete and utter shock.Here he was on behalf of a number ofpanies exposing tactics of Lu Corporation to gain dominance in areas.


    He then continued "For each of thepanies that we represent the tipping point for our involvement in projects with Lu Corporation was the assault on Madam Hou, given the involvement of the then Vice-CEO of Lu Corporation.We cannot and will not condone or sanction violence towards women in any form."


    "While it is possible understand Madam Lu perceiving a threat to her rtionship, in light of her pregnancy, there is no justification for her or Mr Lu''s actions.As a result each of ourpanies separately have determined from a date that we will each announce, going forward we will not have an involvement with Lu Corporation, projects involving them, orpanies thatmence new involvements with Lu Corporation."


    "For some of us in projects where Lu Corporation leadpany and the project agreements allow we will be serving notices on Lu Corporation headquarters terminating or involvement in the projects.If it requires is to take a loss we will do this, but where there is the ability we will be requiring Lu Corporation to immediately purchase out our interest in the development."


    "While we will not demand that allpanies involved in those projects immediately terminate their involvement, we will urge them if they can to get out of the contracts.That will not be possible for all of them, but to be clear going forward there will be a clear choice to make, Lu Corporation or each of thepanies represented here and Hou Enterprises."


    "And before any members of the press present put words in my mouth, or that of anyone else present, we are not speaking for Hou Enterprises.It is the view of thosepanies which we represent that it is in each of our interests that we disassociate ourselves from Lu Corporation, which means we are aligning with Hou Enterprises.I suspect that Hou Enterprises themselves will release their own statement about this in the future."


    "Members of the Press, I will not personally, or on behalf of XF International be taking questions about this matter.XF International have agreed to three separate projects with variouspanies that are represented here, and we will be allowing them to speak.Additionally on Monday next week we will hold a press conference at our headquarters about two separate projects involvingpanies not represented here."


    "The only other information we will provide to you, will be the time of the press conference which is still being finalised.While I am about to leave, I understand that Vice-CEO Ling from Chen Corp needs to leave very soon.I otherwise will be turning over the microphone to those present, and they can advise you as to their individual actions and details as to any future press conferences and whether they will take questions now."With that Yan Tan turned around and noticed there were eight heads shaking.


    "Just to be absolutely clear, none of thepanies here will be will as from today continue to coborate with Lu Corporation in any way shape or form in any project.We understand that in some respect some of us may suffer losses from it, it is a decision about each of ourpanies being a good corporate citizen of this country and not condoning violence, ckmail, intimidation and in some respects corporate espionage."