Agreement in Principle Reached to Settle Armenian Claims, New York Life Says; Company Withdraws Motion to Dismiss Class Action Lawsuit.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--April 11, 2001

New York Life Insurance Company has reached an agreement in principle with plaintiffs' attorneys in which the company agrees to pay all valid claims relating to Armenian policies written by the company in the Ottoman Empire about a century ago. As part of the class action settlement agreement, the company will also contribute at least $3 million to Armenian civic organizations.

"We have a fair and equitable agreement in principle that the parties are confident a court will approve. Both sides recognize that under very difficult circumstances in the Ottoman Empire in 1915, and for years thereafter, New York Life paid benefits to beneficiaries and heirs on policies sold to Turkish Armenians," said William Werfelman, a vice president and a spokesman for the company. These claims, and the potential ones covered by the settlement agreement, arose out of the widespread Armenian deaths that occurred in the Ottoman Empire in 1915, he noted.

Walter Karabian, a California attorney and leader in the Armenian-American community, commented on the settlement: "Many people are unaware of how responsibly New York Life acted after the Genocide of 1915. It went so far to hire an Armenian lawyer in Turkey to seek out beneficiaries and heirs of those who were massacred, so as to promptly pay their claims. This, coupled with their dedicated willingness to settle this case, shows the company as one with all the right corporate instincts as far as the Armenian community is concerned. The Armenian community is better for the company's willingness to deal so forthrightly with the past." Mr. Karabian served as majority leader of the California State Assembly.

Mr. Karabian said, "I'm personally aware of the facts of this case. New York Life provided me with extensive archival records showing that the company routinely waived normal claims requirements -- such as death certificates -- so benefits could be paid. Time after time, the company actually reinstated lapsed Armenian policies in order to pay claims. The records confirm that the company succeeded in paying benefits in about a third of all the Armenian policies from the Ottoman Empire."

Archbishop Vatche Hovsepian, Primate, Armenian Church Western Diocese, said, "Lawyers for the heirs of policyholders and New York Life Insurance Company, have reached an appropriate settlement to provide restitution to those whose loved ones suffered and perished in our nation's darkest hour. More importantly, New York Life has committed a substantial sum to national Armenian institutions that were burdened by the carnage, death, destruction and orphans of the Genocide. This is an appropriate, decent and honorable philosophy and I commend New York Life for it."

Dr. Michael Hagopian, documentary filmmaker and the first Armenian-American to receive a Harvard doctoral degree, said: "The years documenting and recording the stories of Genocide survivors and of making educational films that kept the Armenian Genocide on the world agenda, has paid another significant dividend! The settlement between New York Life Insurance Company and its policyholders' heirs from the old Ottoman Empire is fair and timely. I am proud to add my name to those who say 'well done,' to the plaintiffs' lawyers and the lawyers for New York Life, and in particular our own vice chairman of the board of the Armenian Film Foundation, Walter Karabian."

"The agreement to resolve these outstanding policies is a reflection of New York Life's 156-year history of integrity and humanity. We're proud that New York Life has thousands of Armenian-Americans as policyholders today. We also know that resolving this insurance matter can do little to close a very sad chapter in history for Armenians and people of Armenian descent. One can only imagine how painful the tragic events of 1915 in the Ottoman Empire must be to the Armenian community. New York Life is glad to be doing what it can," Werfelman said.

In light of the settlement agreement, New York Life has informed a federal court in Los Angeles that it is withdrawing a motion to dismiss the class action lawsuit. The motion had been filed to address a jurisdictional issue.

New York Life Insurance Company was founded in 1845 and is headquartered in New York City. New York Life and its affiliates offer traditional life insurance, annuities and long term care insurance. Through New York Life Investment Management, New York Life's affiliates provide institutional asset management and trust services and an array of securities products and services such as institutional and retail mutual funds, including 401(k) products.

Visit New York Life's Web site at www.newyorklife.com for more information about the company.

Biographical Sketches

Archbishop Vatche Hovsepian was educated in Scotland and ordained a celibate priest of the Armenian Church in 1951 in Lebanon. He served as a parish priest in New Jersey and bishop of the Canadian Diocese before becoming, in 1972, the Archbishop of the Western Diocese. As Archbishop of the Western Diocese, he is the senior Archbishop of the Armenian Church in North and South America.

Walter Karabian, Esq., was born in Fresno, California and attended the University of Southern California (USC), where he was president of the student body. Mr. Karabian received his law degree from USC in 1963, and a master's degree in public administration in 1964. He was elected to the California State Assembly in 1966, and re-elected to four consecutive terms before retiring from the Assembly in 1975. He was the majority leader of the Assembly in 1971-72. He is married to the former Laurel Dickranian, daughter of revered benefactor Arshag Dickranian. In 1977, Mr. Karabian was awarded the highest honor the Armenian Church can bestow to a layman, the St. Gregory the Illuminator Medal.

Dr. Michael Hagopian is the first Armenian-American to earn a doctoral degree from Harvard University, when the degree was awarded in 1943. His academic career included professorships at UCLA and The American University in Beirut. A noted filmmaker, Dr. Hagopian has served as Chairman of the Armenian Film Foundation, a volunteer organization, since its founding in 1979. The Foundation is dedicated to the preservation of archival films that document much of the Genocide through first-hand, eyewitness accounts. It has an extensive film library of over 400 such accounts and annually produces documentaries, films and videos of Armenian cultural life, historical episodes, and accounts of the Genocide.