NEWS RELEASE FOR IMMEDIATE RELEASE

May 16, 2001 International Spy Museum First to Receive TIF from the District Newest Museum in Downtown DC Will Explore World of Espionage WASHINGTON, DC - Mayor Anthony A. Williams, Deputy Mayor Eric W. Price, and Chief Financial Officer Natwar M. Gandhi formally announced today that the International Spy Museum will be the first project in the District of Columbia to officially receive Tax Increment Financing (TIF). The International Spy Museum, scheduled to open in spring 2002, will be the largest permanent exhibition in the world dedicated to the history of espionage. The Museum will receive $21.9 million from the District of Columbia in the form of TIF and EZ bond financing. "This project is a welcome asset to the District's growing business community," said Gandhi. "The TIF and EZ Bond transactions that officially closed today are another step in creating an even more enticing environment for developing new businesses within the District." The 1997 District Revitalization Act, passed by Congress, authorized the usage of tax increment financing, and the Council of the District of Columbia passed legislation in April 1998 making TIF money available in targeted areas around the city. The TIF program was created to provide financial incentives to developers committed to creating more housing and retail opportunities in eligible areas. TIF bonds are repaid with the new tax revenue generated by the new development. EZ bonds provide tax-exempt financing for a wide variety of capital projects in Enterprise Zones. The International Spy Museum will receive $6.9 million in TIF and $15 million in EZ bonds. Mayor Williams, a strong proponent of the Museum, said, "The International Spy Museum gives visitors yet another reason to venture off the National Mall and into the rich and vibrant neighborhoods that make Washington, DC, a special place to visit." The International Spy Museum will be operated by The Malrite Company, a development entity dedicated to building and operating cultural facilities and entertainment projects in major US cities. The Museum is projected to boost local economic development through 150 new jobs, $2 million in new annual tax revenue and increased tourism for the region. Support for the project has come from representatives of numerous community and neighborhood organizations, including the District Council, Washington, DC Convention and Visitors Association, Greater Washington Urban League, and the District of Columbia Chamber of Commerce. "It is the city's hope that the International Spy Museum is the first in a long list of organizations interested in working with the District to capitalize on the development of under utilized neighborhoods through new and innovative approaches such as the TIF and EZ bond programs," said Deputy Mayor Price. "The approval of the Spy Museum TIF project is the first of what I hope to be many future TIF projects, since this is a tool that can greatly aid the growth of our City. The Spy Museum joins public and private sectors to successfully partner in an effort that will provide downtown DC with a new museum, as well as retail and restaurant space," said District Councilmember Jack Evans, Chair of the Committee on Finance and Revenue. The Museum will tell the story of famous and infamous spies, master deceptions and intelligence operations that have changed the course of history. It will feature films, interactive technology, exhibitions and one of the largest collections of espionage artifacts open to the public - including the legendary German cipher machine, Enigma; secret KGB cameras; and OSS sabotage weapons. "The level of support The Malrite Company has received from Mayor Williams and the District Government has been extraordinary. Mayor Williams and all those involved including Deputy Mayor Price, Dr. Natwar Gandhi, and the members of the City Council have all contributed to creating an environment attuned to the needs of businesses looking to move to Washington, DC. I look forward to working with them and other members of the community for many years to come," said Milton Maltz, founder of The Malrite Company. The International Spy Museum will be located at 800 F Street, NW, in the soon to be restored block that encompasses the historic Atlas and LeDroit buildings. The 58,000 sq. ft. facility will also include a restaurant, retail store, and special event space, all created with the theme of spies, intrigue and espionage. The site is across the street from the National Portrait Gallery and within easy walking distance of the National Mall. "It has been a pleasure to work with the Mayor, the CFO, the City Council and their staffs toward the continued revitalization of this historic neighborhood of downtown Washington, DC," said Mike Devine, Chief Financial Officer for The Malrite Company. "The renewed Washington business climate is an attractive incentive to any business, big or small, looking to move into the District." Renovation of the landmark buildings will be conducted in consultation with the DC State Historic Preservation Office and the National Capital Planning Commission. Completion is projected for early spring 2002. An artist's rendition of the completed museum and other materials are available at the International Spy Museum's official Web site, www.spymuseum.org.