TMOL Trimol Group Inc (CE)

Trimol Group, Inc. (OTCBB:TMOL) today announced that Intercomsoft Ltd. (�Intercomsoft�), the Company�s wholly owned subsidiary, filed a Demand for Arbitration against the Government of the Republic of Moldova with the International Court of Arbitration in Geneva, Switzerland, seeking damages of not less than $41 million. Intercomsoft is a technology-intensive company which has operated a computerized photo identification and database management system used in the production of various secure government identification documents. Pursuant to a Contract on Leasing Equipment and Licensing Technology awarded to it in April 1996 by the Government of the Republic of Moldova (the �Supply Agreement�), Intercomsoft has provided the Government with the equipment, technology, software, materials and consumables necessary for the production of all national passports, drivers� licenses, vehicle permits, identification cards and other government authorized identification documents. The Demand For Arbitration filed by Intercomsoft asserts that the Government of the Republic of Moldova is in breach of the express provisions of the Supply Agreement with Intercomsoft and seeks payment of approximately $41 million as a consequence of such breach. �The Company is extremely disappointed that the Government of Moldova, without justification or explanation, has failed to comply with its contractual obligations to Intercomsoft,� stated Jack Braverman, Chief Financial Officer of Trimol Group, Inc. �It is disconcerting that a foreign government of an emerging country such as Moldova would send a message to investors and the international financial community that they will not honor their contractual commitments,� continued Mr. Braverman. As a long-standing supplier to Moldova, Intercomsoft invested substantial sums in Moldova to establish, install, and maintain the equipment and provide the materials and consumables used to produce Moldova�s passports, national identification cards, drivers� licenses, and other essential government documents over the past decade. Moldova continues to use that equipment and the license given to it to operate such equipment in contravention of its contractual obligations. �We are surprised that the Government of Moldova would so brazenly cease payments due under a Government contract while continuing to use proprietary technology and equipment of a corporate vendor in blatant disregard of its contractual obligations,� stated Mr. Braverman. The Company believes that Moldova�s actions seem to fit within an emerging pattern of its decreasing adherence to western business practices. The Company has learned that the Government of Moldova recently defaulted in an arbitration proceeding in Sweden involving Moldova�s attempt to apply retroactively privatization legislation to a contract in order to avoid payments due thereunder. An arbitral award against Moldova was issued in such proceeding. �If the Government of Moldova condones the blatant disregard of Government contracts and obligations such as its contractual obligation to Intercomsoft under the Supply Agreement, it is not hard to understand why the World Bank recently reported that Moldova dropped from 88th to 103rd place in the World Bank�s rankings of the ease of doing business in other countries,� added Mr. Braverman. �Regrettably, the actions of the Government of Moldova have left the Company no choice but to pursue its legal remedies in order to protect the interests of its public shareholders. Through its complicity, the Government has created a circumstance that requires the institution of legal proceedings to compel it to honor its contractual obligations. To that end, we have engaged experienced counsel to vigorously pursue the breach of contract claims against the Government of Moldova and we are committed to pursuing such claims to conclusion before the International Chamber of Commerce,� stated Mr. Braverman. Additional information with respect to this matter is available in the Company�s Report on Form 8-K filed with the Securities and Exchange Commission on September 26, 2006. Forward Looking Statements This press release contains forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected. Trimol Group, Inc. (OTCBB:TMOL) today announced that Intercomsoft Ltd. ("Intercomsoft"), the Company's wholly owned subsidiary, filed a Demand for Arbitration against the Government of the Republic of Moldova with the International Court of Arbitration in Geneva, Switzerland, seeking damages of not less than $41 million. Intercomsoft is a technology-intensive company which has operated a computerized photo identification and database management system used in the production of various secure government identification documents. Pursuant to a Contract on Leasing Equipment and Licensing Technology awarded to it in April 1996 by the Government of the Republic of Moldova (the "Supply Agreement"), Intercomsoft has provided the Government with the equipment, technology, software, materials and consumables necessary for the production of all national passports, drivers' licenses, vehicle permits, identification cards and other government authorized identification documents. The Demand For Arbitration filed by Intercomsoft asserts that the Government of the Republic of Moldova is in breach of the express provisions of the Supply Agreement with Intercomsoft and seeks payment of approximately $41 million as a consequence of such breach. "The Company is extremely disappointed that the Government of Moldova, without justification or explanation, has failed to comply with its contractual obligations to Intercomsoft," stated Jack Braverman, Chief Financial Officer of Trimol Group, Inc. "It is disconcerting that a foreign government of an emerging country such as Moldova would send a message to investors and the international financial community that they will not honor their contractual commitments," continued Mr. Braverman. As a long-standing supplier to Moldova, Intercomsoft invested substantial sums in Moldova to establish, install, and maintain the equipment and provide the materials and consumables used to produce Moldova's passports, national identification cards, drivers' licenses, and other essential government documents over the past decade. Moldova continues to use that equipment and the license given to it to operate such equipment in contravention of its contractual obligations. "We are surprised that the Government of Moldova would so brazenly cease payments due under a Government contract while continuing to use proprietary technology and equipment of a corporate vendor in blatant disregard of its contractual obligations," stated Mr. Braverman. The Company believes that Moldova's actions seem to fit within an emerging pattern of its decreasing adherence to western business practices. The Company has learned that the Government of Moldova recently defaulted in an arbitration proceeding in Sweden involving Moldova's attempt to apply retroactively privatization legislation to a contract in order to avoid payments due thereunder. An arbitral award against Moldova was issued in such proceeding. "If the Government of Moldova condones the blatant disregard of Government contracts and obligations such as its contractual obligation to Intercomsoft under the Supply Agreement, it is not hard to understand why the World Bank recently reported that Moldova dropped from 88th to 103rd place in the World Bank's rankings of the ease of doing business in other countries," added Mr. Braverman. "Regrettably, the actions of the Government of Moldova have left the Company no choice but to pursue its legal remedies in order to protect the interests of its public shareholders. Through its complicity, the Government has created a circumstance that requires the institution of legal proceedings to compel it to honor its contractual obligations. To that end, we have engaged experienced counsel to vigorously pursue the breach of contract claims against the Government of Moldova and we are committed to pursuing such claims to conclusion before the International Chamber of Commerce," stated Mr. Braverman. Additional information with respect to this matter is available in the Company's Report on Form 8-K filed with the Securities and Exchange Commission on September 26, 2006. Forward Looking Statements This press release contains forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected.