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BOARD ANNOUNCES SETTLEMENT OF LAWSUIT

     Washington, D.C. (June 20, 2003) — The Federal Retirement Thrift Investment Board announced today that the Agency’s lawsuit against American Management Systems, Inc. (AMS) has been settled.  Executive Director Gary A. Amelio stated that his decision to settle, which was supported by the Board, was made solely in the interest of Plan participants and beneficiaries, who would net $5 million from the settlement agreement.

     The lawsuit brought by the Board and a countersuit by AMS will be dismissed as part of the settlement.  The initial suit has been underway for nearly two years.  Resolution of a preliminary issue regarding the Board’s independent litigating authority was expected to take at least another year before the merits could actually be pursued.  According to Amelio, “Given the additional time, cost, and potential liability that lay ahead, I am very pleased that a settlement on terms favorable to Plan participants and beneficiaries has been achieved.”  Amelio added that the Board has not abandoned its view regarding independent litigating authority, which may still be pursued through legislation.
 

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