Seychelles Rejects Financial Piracy Allegations

MAHE, Seychelles, December 4 - The Seychelles Government rejects the allegations posted by Mr. George
Xiao and his company LXE Solar Incorporated via PR Newswire under the
headline "Lawsuit Charges Seychelles Government With Financial Piracy."

The funds were not "seized" by the Government but frozen, and the
article's accusations are unfounded, defamatory and incorrect, and no part
should be considered as credible information. No attempt was made to contact
the Seychelles Government or the Financial Intelligence Unit for
clarification.

The Seychelles Government has taken a powerful stance against
international money laundering and has started implementing new laws to stop
the flow of money from the hands of criminals into legitimate businesses and
bank accounts, and therefore ensuring the continued success of the Seychelles
jurisdiction as a clean international financial center.

The Seychelles Government established the Financial Intelligence Unit to
meet its international responsibilities in relation to Anti-Money Laundering
laws and the Financing of Terrorism.

This year Seychelles' legislation was amended to give the FIU the power
to investigate suspected money laundering through Seychelles? jurisdiction
and apply to the courts for lawful orders to freeze funds reasonably
suspected of being the proceeds of crime.

The FIU is currently conducting a number of investigations with
equivalent agencies and the law enforcement agencies of other countries,
including the United States.

Seychelles is a jurisdiction which is serious about ensuring a strong
framework of financial security and is ready to investigate suspicious
transactions.

The FIU in collaboration with international law enforcement partners is
currently investigating an account held by LXE Solar Incorporated. The funds
held in its account have been frozen on the basis of evidence presented to
the Supreme Court in Seychelles.

The Government is currently reviewing the complaint lodged against it in
the US District Court and will provide a more detailed response in the near
future.

    Contact:

    Republic of Seychelles
    Office of the President
    Tel.: +248/29-57-57

Contact: Republic of Seychelles, Office of the President, Tel.: +248/29-57-57