NorthPoint's Trustee, Ms. E. Lynn Schoenmann Briefs NPNTQ's Shareholder's group

November 11, 2001


NorthPoint's Trustee, Ms. E. Lynn Schoenmann, gave the NorthPoint Shareholder's Group a 20 minute briefing today on NorthPoint's lawsuit against Verizon plus other information. Here is what we learned:

(1) For those of us who got a virus-infected Email from Ms. Schoenmann a couple of weeks ago: Ms. Schoenmann received a computer virus in an Email. Her Norton Anti-virus program was not updated. Before she became aware of it, the virus got into her Email address book and sent itself to everyone in her address book - several hundred people. She said it shut her operation down for 2 days. She felt bad about it.

(2) Verizon did file a Creditor Claim against NorthPoint's Chapter 7 bankruptcy. Ms. Schoenmann has seen the claim. She said it was filed after the normal time for filing claims had expired and she thought it was some kind of legal maneuver in which she could see no value. Same opinion on Verizon's motion for relief from the "stay" and Verizon's motion to file a counterclaim. She thought the whole package could just be delay maneuvers.

(3) Verizon has not made any settlement offers to Ms. Schoenmann. She said that verizon's people had spoken to some of her people - normal routine - but she has not personally spoken to anyone from Verizon.

(4) If there ever is a settlement offer and if Ms. Schoenmann decides to either accept the offer or reject the offer, "interested parties" are notified and any interested party, including our Shareholder's Group, can file a motion with Judge Carlson expressing opinions on Ms. Schoenmann's decision. Judge Carlson has the final say in the matter.

(5) Ms. Schoenmann does not expect a settlement. She thinks the case will go to trial. If there is a trial, Ms. Schoenmann will be present as Plaintiff, representing the Estate of NorthPoint. She would not litigate her own case, but Michael Kahn, Doug Sullivan and Samuel Miller will litigate the case.

(6) She thinks there is a good chance that a trial date will be set at the December 7 Status hearing, but she noted that the Status hearing has already been delayed twice and she conceded that it could get delayed again.

(7) Even though NorthPoint vs. Verizon is a "track # 1" case (expedited) it could still take another year, or even longer, to conclude. She emphasized that she thinks it will conclude much sooner than 2 years.






(8) Ms. Schoenmann said Discovery and Depositions were going on and she said she was prepared for trial. She also said she was looking forward with anticipation to the trial - she thinks it will be an interesting one and she expressed enthusiasm for her role in the case.

(9) She is lining up "expert" witnesses for the lawsuit against Verizon. She almost told me what kind of expert witnesses they were, but she finally said that was confidential information.

(10) The total amount of money claimed against NorthPoint's Chapter 7 and 11 has still not been determined, but it should be known soon. It is expected to be between $500 million and $600 million.

(11) She did not know if NorthPoint's remaining assets included any of it's own stock (NPNTQ). She was very intrigued by the question - it really "grabbed" her - and she told me she would find out if NorthPoint owned any NPNTQ stock and she said we could call on Monday to get the answer.

(12) Ms. Schoenmann said that she thought things would be quiet on our case at least until December 7 (Status Hearing). She seemed to be completely unaware of the recent volatility of NorthPoint stock price and volume.

Ms. Schoenmann is very aware of our Shareholder's Group and she is as open, helpful and forthcoming as is possible for her under the circumstances. She is certainly "accessible" to our Group and she has stated that she represents shareholder's interests. It's always a pleasure to talk to her - she's professional, "with it" and definitely has her head in the game.

Ms. Schoenmann is a private attorney who has been appointed by a Federal Court to be Trustee. NorthPoint vs. Verizon is not "just another case" to her. She is clearly "engaged" in this and she's taking it very seriously. She has said that NorthPoint has a very good case against Verizon.

I'll call again on Monday for the answer on NorthPoint's possible ownership of it's own (NPNTQ) stock. If anyone can think of any new questions for Ms. Schoenmann, please post them and I'll see if I can get them answered

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