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To: couldawoulda who wrote (2590)	5/21/2002 3:53:01 PM
From: Rocket Red	Read Replies (1) \| Respond to of 19697

CARNEGIE INTL CORP - News Release - 2002-05-20 21:09 Special Master Hearing Set in Carnegie's $2.1 Billion Suit vs. Grant Thornton Special Master Hearing Set in Carnegie's $2.1 Billion Suit vs. Grant Thornton BALTIMORE, May 20, 2002 (BUSINESS WIRE) -- Carnegie International Corporation (OTC BB: CGYCE) said today that a two-day hearing is scheduled to begin before the Special Master in the Circuit Court for Baltimore City on May 31 in its $2.1 billion law suit against Grant Thornton LLP, its former auditor. The company said it expects the hearing to be the final process before Special Master Juliet A. Eurich, Esq., a former federal prosecutor, issues her report to the Court. Carnegie said the hearing will focus on the creation and existence of a second set of work papers by Grant Thornton, the late production of the second set of work papers by Grant Thornton, and the more than 150 material differences between those sets of work papers (see "Judge `Temporarily Suspends' Trial in Carnegie's $2.1 Billion Suit vs. Grant Thornton, Orders Investigation of Alleged Discovery Violation by Defendant," Business Wire, Nov. 15, 2001). Carnegie said it will present expert testimony and cross-examine Grant Thornton's expert regarding alleged fraudulent conduct of partners in the firm's audit practice, who allegedly mishandled the financial audit, leading to charges of fraud, breach of contract and malpractice in the lawsuit. The company filed a motion in Circuit Court in November 2001 alleging willful and intentional destruction of evidence by Grant Thornton, and that, among other things, Grant Thornton "willfully, knowingly and intentionally destroyed Carnegie documents with the full understanding that litigation was imminent," and a senior Grant Thornton partner admitted destroying the documents in a deposition given in July 2001 in Chicago. Carnegie Shares Move to OTC Pink Sheets Carnegie President Lowell Farkas also said that work is now being completed on a financial audit for fiscal 2001, which he expects will be filed within the next five to seven business days. The company had until close of business today to file in order to maintain compliance for continued trading on the OTC Bulletin Board. Carnegie shares will temporarily trade on the OTC Pink Sheets, but the company said it fully expects to return to the OTC BB when the audit is completed and filed. Price quotes and news about Carnegie are available at www.pinksheets.com as well as on the company Web site (www.carnegieint.com). About Carnegie International Corporation Carnegie International Corporation is an Internet support and computer telephony holding company with specialization in telecommunications products, services and distribution, and in E-Commerce and EDI. Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this Press Release (as well as information in oral statements or other written statements made or to be made by Carnegie International Corporation) contain statements that are forward-looking, such as statements relating to the future anticipated direction of the telecommunications industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of Carnegie International Corporation. These risks and uncertainties included, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, change in Federal or state laws, and market competition factors. CONTACT: Carnegie International Corporation Lowell Farkas, 410/785-7400 lfarkas@carnegieint.com or The Kaminer Group David A. Kaminer, 914/684-1934 dkaminer@kamgrp.com URL: businesswire.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. Copyright (C) 2002 Business Wire. All rights reserved. -0- KEYWORD: MARYLAND INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS E-COMMERCE LEGAL/LAW TELECOMMUNICATIONS SOURCE: Carnegie International Corporation STOCK SYMBOLS: [(cgyce)]