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INTERNATIONAL PANEL EXONERATES WESTINGHOUSE IN PHILIPPINE BRIBERY ARBITRATION

 INTERNATIONAL PANEL EXONERATES WESTINGHOUSE
 IN PHILIPPINE BRIBERY ARBITRATION
 PITTSBURGH, Dec. 19 /PRNewswire/ -- The International Chamber of Commerce today issued its binding ruling in Geneva, Switzerland, in the dispute between Westinghouse Electric Corporation (NYSE: WX) and the Republic of the Philippines and its National Power Corporation concerning the Philippines' nuclear power plant.
 The dispute concerns charges that some 15 years ago Westinghouse allegedly paid President Marcos bribes through an intermediary. After reviewing this matter for three years, after ten days of hearing and after three days of argument, the tribunal ruled today in a 130-page decision that there is no evidence to support the charges of bribery.
 This exoneration of Westinghouse echoes similar actions by the Department of Justice and the Securities Exchange Commission 14 years ago when they reviewed the same evidence involving charges of bribery. The ruling also reaffirms Westinghouse's position which it has maintained for 14 years that no bribery ever took place.
 Westinghouse chairman Paul E. Lego said, "We are pleased with the ruling. It affirms and vindicates the position which Westinghouse has taken for over 14 years."
 Specifically the tribunal found that:
 "Most significantly, there is no direct evidence that Marcos supported Westinghouse because he expected to benefit (from commission payments to an intermediary). The circumstantial evidence also fails to prove that Marcos promoted Westinghouse because he expected to receive (commission payments from an intermediary). There is no evidence either of any agreement between Marcos and Westinghouse, or (that the intermediary) acted as agent for Marcos."
 "Although (the Philippine parties) argue that the circumstantial evidence establishes that Marcos must have received a share of the commissions (from the intermediary), the tribunal is not persuaded."
 "The tribunal notes that (the Philippine parties) have had unusual access to information -- far beyond that available to the usual litigant -- in order to develop their case in this arbitration, including information derived from the Swiss government, the Philippines investigation and the United States federal court proceeding. Nonetheless, on the record before it, the tribunal can only conclude that (Philippine parties) have failed to carry their burden of proving Westinghouse's alleged bribery."
 In making this final and non-appealable ruling that no bribery exists, the arbitration tribunal rejected the Republic of the Philippines' contention that the arbitration tribunal did not have jurisdiction over the issues and rejected the Republic of the Philippines' contention that the contract between Westinghouse and the Philippines utility company was invalid.
 Nathaniel Woodson, vice president of Westinghouse's Energy Systems business unit said , "We have said before and we say again: Not one dime was ever paid by Westinghouse to President Marcos. When the facts and the witnesses are looked at, everyone who has ever examined this question has come to the same conclusion; namely, that Westinghouse has not committed any wrongdoing. It is easy for lawyers to make wild and irresponsible charges of bribery. It is quite another thing to have them prove the same.
 "Now that the bribery charges in the Philippines' arbitration are extinguished, the balance of the arbitration relates to whether the Philippines Nuclear Power Plant was constructed by Westinghouse in accordance with its contract. Westinghouse feels very confident in its position on this aspect of the arbitration and looks forward to presenting its evidence to demonstrate that the plant is safe and was constructed in conformity with the contract."
 This ruling is binding on the National Power Corporation, which signed the nuclear contract with Westinghouse. Although the Republic of the Philippines participated in every phase of the arbitration and ultimately failed to demonstrate bribery on the part of Westinghouse, the arbitration itself will be binding only on the National Power Corporation and not the Republic of the Philippines.
 "Because the National Power Corporation is making all of the same charges against Westinghouse as the Republic of the Philippines, we believe and the tribunal strongly suggests in its decision that the Republic itself will be barred from relitigation of the same claims now brought before the tribunal by the National Power Corporation," Woodson said.
 The tribunal stated:
 "This tribunal has no doubt that the trial judge will not alter his reasoned decision and permit any additional counts to be litigated in the New Jersey action as a result of a finding by the tribunal that the Republic is not a party to the PNPP arbitration clause."
 -0- 12/19/91
 /CONTACT: Paul Jones of Westinghouse Electric Corporation, 412-642-3713/
 (WX) CO: Westinghouse Electric Corporation ST: Pennsylvania IN: OIL SU:


CD -- PG015 -- 4164 12/19/91 18:40 EST
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Date:Dec 19, 1991
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