An Informative Correspondance With The U.S. Trustee Representing The Interests of NortPoint's Estate

October 20, 2001

Ms. Schoenmann

Sometime ago, I had mailed a complaint to your office in support of NorthPoint against Verizon for the alleged "Fraud" that was committed. I am Military Member and many other veterans I know of own shares of NorthPoint npntq.

We are all very concerned as I am sure you can appreciate with the present world events and many of us are involved in action being taken in one form or another and this Verizon matter is not helping us any.

We feel unnecessarily vulnerable, unfairly treated by Verizon and for what appears no good or fair and equitable reasons. Concerning our NorthPoint lawsuit against Verizon, we are all concerned with the outcome as you can imagine, of the common npntq shareholders. From what we have heard, you have been highly professional and as supportive as you could be with many other NorthPoint shareholders, many of which are former employees that have lost a great deal as well due to Verizon's wrongful termination of the legally binding merger with NorthPoint.

Therefore, if at all possible, seeing that us common npntq NorthPoint shareholders were specifically mentioned within the merger between NorthPoint and Verizon, indicating that npntq common shareholders would receive $2.50 for each share we owned and additionally a "New NorthPoint Share" for each share we owned and 45% stake in the new combined entity, we feel strongly and pray for your support in this matter by possibly appointing us an attorney or for you to directly ensure that the common shareholders of NorthPoint voices are heard and we are afforded some protection due to the outlining alleged "Fraud" that was committed basically against the shareholders as well.

It seems as though this case is very unique, considering this is, is it at all possible for myself and my fellow veterans and the other npntq shareholders to be afforded some "Safe Haven" due to the unusual circumstances that exist directly due to Verizon's overt actions?

I pray on behalf of justice and the American way that you, as you have stated in press releases etc, seek some sort of relief for the innocent npntq shareholders. As indicated, many of which are former NorthPoint employees that feel the same as I have conveyed to you in this request.

I look forward to hearing from you with some sort of favorable response so that I can provide my fellow military members and others with whatever peace of mind possible? Once again, thank you very much for your continued support and dedication, from the many people I communicate with it, your great efforts are definitely not going unnoticed and your assistance is very much appreciated.








U.S. Trustee Lynn Schoenmann's Response:


----- Original Message -----
From: Schoenmann
To: XXX XXXXXXXX
Sent: Saturday, October 20, 2001 10:10 PM

Mr. Saladino:

Thank you for your email and your kind comments.

A couple of comments. First, I do not understand your reference to a "safe haven" for shareholders. Perhaps you would elaborate. It is not possible for me to appoint an attorney to represent your interests. I am the trustee of the bankruptcy estate, and as such I am responsible for representing the interests of creditors, and also other parties in interest, which includes shareholders. I have employed counsel for the estate, and special counsel to pursue the litigation. It would be inappropriate for me to employ counsel to represent any particular interest. My obligation is to represent the bankruptcy estate as a whole, without regard to any particular interest.

Also, I would temper your enthusiasm. I would not say that I have been misquoted by the press, but when I read the press reports, I note that my comments may be somewhat overstated. I do not know what the upper limit of the estate's potential recovery is, and I will not say that $4 billion is unattainable. That is all that I have said. We are pursuing a fraud count, as well as breach of contract, and looking for punitive damages, and in that context I do not know that any of us know what the upper limit of recovery may be. However, it is early in the litigation. Discovery is in its early stages. Thus it is premature to fix expectations. Please keep in mind that the recovery must be something in excess of $500 or $600 million (we do not yet know the number, but expect it to be in that range) before anything will be available for equity holders.

I appreciate all of the emails and other messages of support that I receive from shareholders such as yourself. I would be very pleased to see a recovery that will pay all secured creditors, unsecured creditors, as well as equity holders. I do not yet know that such is attainable, as it is very early in the process. I am confident that our case against Verizon is a strong one. But I am not yet confident that your expectations can be satisfied. We will see what unfolds as we move forward. I can only assure you that I will pursue this lawsuit with aggressive diligence. Beyond that, I can not make any promises, nor can I encourage your expectations.

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