Markstone Capital Announces the Appointment of Ambassador Dan Gillerman as Chairman of Markstone Capital (Israel)

WASHINGTON, Dec. 3 /PRNewswire/ -- Markstone Capital announced today that Elliott Broidy has resigned as Chairman of Markstone Capital (U.S. and Israel) and from any management or operational role in all Markstone entities. Mr. Broidy announced this morning that he has pled guilty to one count of rewarding official misconduct under an agreement with the New York Attorney General and has resigned from Markstone in order to focus his attention on legal matters. He will work with the other partners to provide an orderly transition. Markstone expects these events to have no effect on the value of investors' interests in the partnerships.

Ambassador Dan Gillerman (former Israeli Ambassador to the UN and Chairman of the Israel Association of Chambers of Commerce) has been appointed as the new Chairman of Markstone Capital (Israel). He will shortly be appointed Chairman of Markstone Capital (U.S.). Markstone expects a seamless transition from Mr. Broidy's to Ambassador Dan Gillerman's leadership and that there will be no interruption of service to investors and no impact on the value of the investments held by Markstone Capital.

The operations of Markstone's investment funds, including assessment of opportunities and management of investments, have been based in Israel since the inception of the funds. This will remain the case.

Markstone's investment funds have been performing well and, based on current indications, will produce positive overall returns. Through the end of the third quarter 2009, Markstone has invested $562 million in ten companies, with an overall gross internal rate of return of 11%. The funds have already distributed $218 million to its investors, representing 39% of the amounts invested. The $218 million distributed was primarily from the sale of two investments, which produced annual returns of 49% and 34%. The funds have over $200 million in commitments for additional investments and are assessing opportunities across a range of sectors in the Israeli economy.

This announcement contains forward-looking statements that are based on current expectations and projections about future events. These forward-looking statements are subject to risks and uncertainties, including risks and uncertainties outside the control of Markstone, that could cause actual results to differ materially from those expressed or implied by such statements. Such statements generally are identifiable by the terminology used, such as "plan," "expect," "estimate," "budget," "believe" or other similar words. In addition, Markstone may from time to time make forward-looking public statements concerning our expected future operations and performance and other developments. All of these forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those we expected. We therefore caution against placing substantial reliance on the forward-looking statements. All forward-looking statements included in this announcement are made only as of the date of this announcement and Markstone assumes no obligation to update any written or oral forward-looking statements made by us or on our behalf as a result of new information, future events or other factors.

SOURCE Markstone Capital Group LLC