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Sheikh Khalid bin Mahfouz
C/o Kendall Freeman
43 Fetter Lane London EC4A 1JU

17 June 2004

Dear Sirs

Modern Jihad: Tracing Dollars Behind the Terror Networks, written by Loretta Napoleoni and published by Pluto Press ('the Book')

You have drawn our attention to the fact that the Book published in September 2003 contains erroneous and highly defamatory allegations about your client, Sheikh Khalid bin Mahfouz.

We accept that there is no truth whatsoever in any of the serious and highly defamatory allegations. We would now like to correct the record and acknowledge the following:

  1. Sheikh Khalid bin Mahouz is not Osama bin Laden's brother-in-law and has neither supported Bin Laden and his Al Qaeda terrorist network nor any form of terrorism whatsoever.

  2. Sheikh Khalid bin Mahfouz did not pay protection money to Osama bin Laden to stave off attacks on his businesses in Saudi Arabia.

  3. The Saudi Government did not discover that Sheikh Khalid bin Mahfouz had transferred $3 million through the National Commercial Bank to charitable organisations which were fronts for Osama bin Laden's terrorist network.

  4. The Saudi Government did not force Sheikh Khalid bin Mahfouz to sell his shares in the National Commercial Bank.

  5. Sheikh Khalid bin Mahfouz has never had any ownership in Delta Oil.

We accept that Sheikh Khalid bin Mahfouz and his family abhor terrorism in every way and apologise to him for the grave embarrassment that the allegations in the Book have caused.

In order that this matter may now be resolved, we undertake to stop selling the Book in the UK. We further undertake not to publish or cause or authorise to be published the words complained of contained in the book about Sheikh Khalid bin Mahfouz or any similar words to the same effect in the future. We also undertake to pay Sheikh Khalid bin Mahfouz's legal costs incurred in relation to this matter.

Yours faithfully
Pluto Press Ltd

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