Update: Developing Market Expert Says the Effect of Worldwide "Bailout Package" Would Not Be Identical for Rapidly Developing Economies

WASHINGTON, DC--(Marketwire - October 16, 2008) - Today, Dr. Alexander Mirtchev, founder and chairman of the Krull Corporation and an economic expert on emerging markets, expressed uncertainty on the numerous bailout packages established by European nations and the United States. Dr. Mirtchev is also the Chairman of Kazakhstan's Sustainable Development Fund Kazyna.

"One effect of these bailouts that appears unclear is how they will affect emerging markets, which are at present the source of highest economic growth in the world," said Dr. Mirtchev. "Some emerging markets that are essentially dollar-based economies -- Korea, Russia, etc., have a pronounced solvency-derived liquidity problem -- the local banks, which dominate the market, do not have enough cash to maintain their existing debt obligations, and there are no visible options for obtaining additional external financing. Other emerging markets, such as Brazil, Chile and Argentina, have a more cash-rich banking basis, and the dearth of liquidity will not be so visibly felt for a much longer period -- in other words, the period of economic slowdown in these countries could either be prolonged or economic recovery would come much later."

Dr. Mirtchev cautioned: "The key emerging market players should be concerned that the current bailout formula, instituted by the U.S. and European governments (that appears to institute a new "politically correct economic paradigm") will give those governments that have been slow to institute market reforms in their economies, a demonstration that they might not have been in the wrong."

He added: "The bailout format that is rapidly becoming universal would provide banks and institutions that should have died a natural death a 'stay of execution', thus irreversibly extending the downward pressure on the local economies. It would lengthen unnecessarily any economic downturn that these economies may be suffering due to the fact that the surviving banks (or the governments, acting as banks) that hold bad assets will take longer to divest themselves of those bad assets."

Dr. Mirtchev did express confidence in the long-term stability of energy-rich economies such as Kazakhstan, Russia, Bolivia, Mexico and others, subject to adherence to market principles and steady political leadership. He asserted that with the likelihood of increased debt by U.S. and European countries, investors would look toward productive assets such as energy and other natural resources. Dr. Mirtchev also made comments on the oil issue to Focus Washington's Chuck Conconi, the interview can be viewed at www.youtube.com/focuswashington.

For more information, visit www.KrullCorp.com.

About Krull Corporation

Krull Corporation is a Washington, D.C.-based advisory and project management firm with expertise in dealing with economic growth and industrial development issues. Founded by Dr. Alexander Mirtchev in 1992, Krull Corporation capitalizes on his extensive professional experience in market developments and reforms and focuses primarily on emerging and rapidly developing economies. Over the years, the firm has provided its clients with outstanding strategic guidance and professional services in various areas. Combining a unique blend of global reach and understanding of local markets, Krull is able to consistently produce high quality results and returns.

Contact Information: Contact: Matt Lauer Qorvis Communications