Press Release for Immediate Release  May 17, 2005 DC Attorney General Settles NorVergence Claims with General Electric Capital Corporation Washington, DC - Attorney General Robert J. Spagnoletti today joined seven state attorneys general in announcing a settlement agreement with General Electric Capital Corporation (GE Capital) that could provide $244,000 in debt forgiveness to 15 District of Columbia customers who are obligated to make payments to third-party leasing companies after an allegedly fraudulent telecommunications company went bankrupt. Mr. Spagnoletti, and Attorneys General of Connecticut, Georgia, Illinois, Maryland, North Carolina, Pennsylvania, and South Dakota have reached an agreement with GE Capital in connection with its collection agreements on behalf of NorVergence, Inc. Under the terms of the agreement, affected consumers may choose to participate or decline to participate. If all affected consumers in the District and the seven states accept the deal, GE Capital will write off more than $2.89 million in debt for 216 small businesses nationwide. "By entering this agreement, we are sending a message that deceptive sales practices will not be tolerated," says Mr. Spagnoletti. "Small businesses in the District were lured into signing telecommunication service agreements with NorVergence, creating huge financial hurdles for owners." Under today's settlement agreement, GE Capital-which entered into direct contracts with NorVergence customers or, through other third-party companies, bought out lease agreements between NorVergence and its customers-has agreed to write off or forgive $2,891,699 million it claimed to be owed by 216 NorVergence customers from the District of Columbia and the seven states represented in the agreement, including $244,000 owed by 15 District consumers. This amount constitutes 85% of the debt owed to GE Capital from the period beginning on July 15, 2004, the approximate date that NorVergence ceased providing any services. Consumers who have made payments to GE Capital since July 15, 2004, will receive credit for those payments toward their remaining balance. Page 1 of 2      1  2