Press release from Geoffrey Borg

Memorandum of understanding between the Hon Kirsan Ilyumzhinov and Bessel Kok in Prague

The FIDE President Kirsan Ilyumzhinov and Mr Bessel Kok are happy to announce that following a meeting in Prague on the 21st of December 2006, a Memorandum Of Understanding has been signed. The parties agreed on the formal launch of a company called Global Chess BV to be located in Amsterdam, in the Netherlands. A five year business plan, a financial budget and the draft statutes of the new company was approved.

With the exception of those competitions which have already been contracted by Fide to organisers, Global Chess will become responsible for the marketing, development and promotion of all FIDE tournaments and matches related to the World championship cycles for Men, Women, Youths and Juniors.

It will also act as an investment vehicle for chess related projects that will be selected by the Board following detailed feasibility studies for further investment.Areas that will be considered are training academies, software, media programmes amongst a number of projects that will be studied an which will help in making chess more popular across the world.

Global Chess will work under a licence agreement to be granted by FIDE. This follows the last Presidential Board meeting in Elista whereby it was agreed by the FIDE Board to pursue discussions with Global Chess on a licence agreement to achieve the above objectives.

The initial start up capital of Global Chess will be 4.5 million Euro to be supplemented by an additional 5,5 million Euro to support future ventures in chess related projects.

The initial Board of Directors will consist of Kirsan Ilyumzhinov, Bessel Kok and Alexey Orlov. The Board asked Mr. Bessel Kok to act as its Chairman, which he accepted. The Board also commissioned the management team required for Global Chess BV.

Thanks and seasons greetings,

Geoffrey D Borg