Russell Brown Wins Legal Victory over Edward Eugene Lehman

Hong Kong High Court finds Edward Lehman guilty of contempt of court

HONG KONG, BEIJING and SINGAPORE, May 12, 2011 - Russell Brown, Fellow of the Chartered Institute of Management
Accountants (CIMA), and Managing Partner of LehmanBrown, a leading
China-focused accounting, taxation and business advisory firm, won a
significant legal case against Edward Lehman, Managing Director and founding
partner of Lehman, Lee & Xu, a mainland Chinese law firm, who was found
guilty of contempt of Court by the Hong Kong High Court. Lehman's own counsel
described Edward Lehman's conduct in breach of an Injunction Order as
"stupid", "foolish" and "culpably negligent." The Honourable Mr. Justice To
imposed a fine of HK$200,000 against Lehman and awarded indemnity costs of
HK$400,000 to the Plaintiffs.

The Plaintiffs, Russell Brown, Zhou Han Brown and 'Effiscient,'
one of two shareholders in LehmanBrown, sought legal recourse in Hong Kong,
were vindicated in their commitment to the due process of law against Edward
Lehman and were successful in proving that between February and September
2010, Edward Lehman, a Patent and Trademark Agent in Hong Kong, China, and
Macau, a member of the Illionos State and American Bar Associations and a
lawyer practicing in China, issued over 9,000 emails containing defamatory
statements about the Plaintiffs and LehmanBrown. The actions of Edward Lehman
were held to be in deliberate breach of a Hong Kong High Court Injunction
Order issued by The Honourable Mr Justice To on 23 July 2010. On 2 November
2010, Brown, Zhou Han and Effiscient issued an Originating Summons against
Lehman for contempt of Court and committal to prison.

In Open Court in Hong Kong on 19 April 2011 with The Honourable
Mr Justice To presiding, the legal counsel for Edward Lehman described
Lehman's conduct in breach of the Injunction Order as "stupid", "foolish" and
"culpably negligent." Edward Lehman admitted contempt and made an unreserved
apology to the Court as well as to each of Russell Brown, Zhou Han Brown and
Effiscient in an attempt to avoid a custodial sentence.

The Honourable Mr Justice To stated that Edward Lehman had
committed "a very serious case of contempt" and the case was one that at
first glance "warranted an immediate custodial sentence." While considering a
custodial sentence, which Edward Lehman claimed would impinge on his ability
to practice law, the Judge imposed a fine (HK$200,000) and awarded costs to
be paid to the Plaintiffs on an indemnity basis (HKD400,000) - USD77,250 in
total. Meanwhile, the Plaintiffs have also obtained an Interlocutory
Judgement against Lehman in a separate defamation action in Hong Kong and are
currently pursuing an assessment of damages and costs, which are expected to
be substantial.

Commenting on the victory of due process of law over Edward
Lehman, Russell Brown said, "The Honourable Mr Justice To's decision against
Edward Lehman for flouting the authority of the courts demonstrates that no
one is above the law, regardless of their profession, or their country of
origin or residence. I have always maintained that the best way to defend our
integrity in China is to trust the legal framework which exists to protect
honest citizens and professional organizations."

About LehmanBrown

LehmanBrown is a leading China-focused accounting, taxation and
business advisory firm. The company operates through offices in Beijing,
Shanghai, Guangzhou, Shenzhen, Tianjin and Hong Kong, and employs around two
hundred professionals throughout China, all of whom are English-Mandarin
bi-lingual.

LehmanBrown is registered with the PCAOB in the USA. LehmanBrown
is also an Accredited Employer and Training Partner of many top global
accountancy institutes including the Association of Chartered Certified
Accountants (ACCA), the Chartered Institute of Management Accountants (CIMA),
the Institute of Chartered Accountants in England and Wales (ICAEW), the Hong
Kong Institute of Certified Public Accountants (HKICPA) and CPA Australia.
LehmanBrown was the first ACCA China-wide Approved Platinum Employer.

Visit www.lehmanbrown.com

    Media contacts

    Hong Kong & Beijing - (English language): Jim James
    EASTWEST Public Relations
    E: jim@eastwestpr.com M: +86-13910731967

    Hong Kong & Beijing - (Chinese language): Kelvin Chen
    EASTWEST Public Relations
    E: kelvin@eastwestpr.com M: +86-150-0120-3090

    Singapore: Laurent Decosse
    EASTWEST Public Relations
    E: Laurent@eastwestpr.com M: +65-97-302-174

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