Email 1: Sent August 23, 2007 2:36 PM

Dear Nicholas,

I am "holding up" very well. It has been a four-year battle, and after the opening assault that I had pillaged the company for hundreds of millions of dollars, and the prolonged effort to impoverish me and imprison me for life, I feel I have steadily gained ground, and have an excellent basis for appeal. Being a historian, I am fairly familiar with the ups and downs of peoples' careers and may be able to assimilate a cataract of horrors better than some people.

I don't think there are many parallels between Nixon and me. He was a president and a historic figure; I was just a somewhat prominent publisher. He was a rather morose and solitary person and I'm reasonably gregarious. There is a stronger case for charges of illegalities against Nixon than against me. Where there may be some comparison is in the virtues of fighting these crises through and never giving up. As for the Hiss case, all Hiss had to do was tell the truth. He would have lost the Carnegie Endowment position, but could have resumed a successful public policy career. I didn't think Nixon's conduct was unjustifiable. He was convinced Hiss was lying; he was almost certainly correct, and Hiss was extremely gratuitous at times. Hiss' fate was sad, but he did bring it on himself. Nixon behaved reasonably honorably, even if all the piffle about the pumpkin papers and "monstrous treason" were overdone.

I think my counsel had to tear down the main government witnesses and they did that. The jury implicitly judged that Radler, Burt, Kravis, Thompson, and Healy all lied under oath. This had to be done. I think an adequate basis for the non-competes was laid, as most of them were found to be legal.

I won't comment on Mark's piece, other than to say I agreed with parts and not other parts of it. My testifying would have opened the trial up to a much wider range of questions, which I could have dealt with, but it would have made the trial longer and more complicated. I give my counsel the credit for getting rid of 12 of the 16 counts the prosecution started with, and the responsibility for losing the other four, which we still hope to win.

A non-US attorney can act in a US court if he is adequately familiar with US procedure.

I don't think any serious doubt about my business acumen was raised in this case. We all believed that American Publishing was a re-designation of unallocated management fees, and so Radler testified throughout and at trial. The payments were approved as management fees and again as non-competes. I do not think they were illegal.

I never met with the Audit Committee and they always told me they were happy with the information they received. I suppose more extensive disclosure would have helped.