To the Victims of the Riverwalk Fire

Robert Mongeluzzi
October 7, 2009

To the Victims of the Riverwalk Fire:

We are pleased to report that we have reached a preliminary settlement with all the Defendants in the litigation related to the August 13, 2008, fire on Washington Street, Conshohocken, Pennsylvania. To settle all of the outstanding claims related to the fire the Defendants have collectively agreed to pay $36,250,000.00. Of this amount, $9,062,500.00 is the Settlement Fund devoted specifically to the claims of the Class Action Plaintiffs and the subrogated insurance liens.

Please note that pursuant to the Pennsylvania Rules of Civil Procedure this settlement is subject to two separate Court approvals (a preliminary approval and a final approval). Since reaching the settlement earlier this week, we immediately began working to bring the settlement to the Court for preliminary approval so that we can open the claims process. We expect the preliminary approval hearing to occur later in October. Once the Court preliminarily approves the Settlement Fund, you will receive a Notice in the mail, together with a Claim Form that must be completed and returned in order to submit a claim. In addition to the mailed Notice, after Court approval, the website: www.riverwalkfiresettlement.com will be activated and will contain the necessary information for you to complete your claim.

Prior to Court approval, it is impossible to know how much each individual claimant will receive from the Settlement Fund. As currently proposed, the distribution of the funds will be decided by an independent third party Claims Administrator who has experience in handling such claims. The review of the claims, however, will depend primarily on two factors: (1) the size of an individual's losses and available documentary support; and (2) the number of claims submitted by all members of the class. Please also note that all of the expenses of the litigation, administration of the settlement, and attorneys' fees will be paid from the Settlement Fund and will also be subject to Court approval.

While we are all collectively waiting for the Court to preliminarily approve the settlement, it would best if you could gather as many documents as you can to help support the losses you sustained in the fire. Obviously, we understand many of your receipts were lost, along with your valuables. But, often credit card companies and banks can provide you with copies of old statements. Obtaining these statements and highlighting larger purchases, such as TVs, stereos, designer items, etc., will best help support and validate your claim. Also, gathering all the documents you submitted to your insurance carriers to receive payment following the fire is an important and necessary step. The Notice you receive in the mail after preliminary approval by the Court will instruct you on how and when to mail these documents to the Claims Administrator, who will then independently review and assign a value to your claim.

We believe that the more than $9 million Settlement Fund represents a fair and just result in this litigation; especially, in light of the expeditious manner in which it was recovered, coupled with the number of parties and claims involved. When we originally filed the case on August 18, 2008, we anticipated years of litigation, including exhaustive appeals, to achieve such a result.

Overall, we hope that this recovery can help bring you some closure. Certainly, no amount of money can ever bring back all that was lost, but hopefully you can take some comfort in knowing that this final piece is complete.

All the best to you and your families,

Robert J. Mongeluzzi & Patrick Howard

Saltz, Mongeluzzi, Barrett & Bendesky, P.C.

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Robert J. Mongeluzzi

Office: 215-575-2989