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(July 12, 2005) - Update: The below is the response from Edelman's law firm to the document from Migut Media's attorney delivered June 26th.

Dear Mr. Ślusarek,

Our law firm is representing Edelman Inc.

We confirm that our client has received your summons dated June, 21 2005.

On behalf of our client we firmly deny all the allegations made in the summons and sustain the position you know from the previous statements of our client, that the entrance of the Polish market was in compliance with the laws and ethics rules.

Also, we were extremely surprised to read the information from your summons on the Web page of your client.

Therefore, we will not undertake any serious exchange of legal arguments as we believe that the copy of our letter will also be published by the press. We do believe that this is not a serious way of resolving business disputes and we will not take part in a conflict conducted in such a manner.

Our client is aware of the fact that there is a civil and criminal case against your client filed by Barbara Kwiecien and other key employees and our client fully supports their efforts in keeping their good business reputation.

If you require any further legal information, please feel free to contact us.
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(June 27, 2005) - Update: Edelman has received a document from Migut Media's attorney, which details the company's grievances concerning Edelman's entry into the Polish market.

We expect to respond after we have had time to review the document. In the interim, Edelman continues to stand by its previous statements related to the opening of its Warsaw office.
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(June 20, 2005) - On June 14, 2005, one of the Public Relations Associations in Poland (ZFPR) issued a statement in which it claimed that our employees acted outside of "professional ethical standards." We absolutely disagree with this statement and have protested directly to the Polish Association and to the International Communications Consultancy Organization (ICCO, the umbrella organization of PR associations). The initial statement by ZFPR was written and issued prior to any member of the group conferring with Edelman or making an attempt to hear our side. This occurred despite the fact that Edelman employees made themselves available to the organization over a two day period. After our protest, the group agreed to meet with Edelman representatives last week. It then published another statement. While ZFPR did not retract its previous statement, the new statement was noticeably more considered. However, ZFPR continues to ignore ICCO's request that it mediate rather than take sides.

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(June 16, 2005) - On June 1st, Edelman opened an office in Warsaw Poland, our first in Central and Eastern Europe. The majority owner of our former affiliate agency in Poland Wiesław Migut is mounting an increasingly global misinformation campaign against Edelman and our employees in Poland, several of whom worked at his agency BCA. Mr. Migut claims we have set up in Poland "illegally" and "unethically."

Our entrance into the Polish market in no way violated any prior agreement with our former affiliate BCA. Nor did our decision to hire Barbara Kwiecien as the office’s General Manager violate any ethical standards of professional conduct as Mr. Migut and ZRPR, the PR Association of Poland, erroneously contend.

The facts of our launch are as follows:

  • Contrary to Mr. Migut's assertion there is no legal dispute or claim against our opening. The only legal action in Poland connected with this issue is the suit brought by five Edelman employees against Migut for defamation of character.
  • There is no legal ground for a case against Edelman. We believe this is why Mr. Migut has not brought an action against our firm.
  • We approached BCA twice about acquiring the company. Both times we were turned down by Mr. Migut, who owns a 51% stake. Barbara Kwiecien, our new Warsaw General Manager, who owns 49% wanted to sell and become part of an international network that offered her a greater chance for professional growth.
  • After Mr. Migut’s second refusal, we decided to set up an Edelman operation with Barbara as the General Manager.
  • Barbara resigned and completed her one-month notice period as requested.
  • Once Barbara had established Edelman’s Warsaw office several of her former colleagues elected to join her. Each of these employees made an independent decision about where to pursue a PR agency career.
  • Contrary to Mr. Migut’s assertion that we did not communicate with him, we replied initially to his accusations but stopped doing so when he began to threaten us with a program of disinformation. He has since launched that campaign in earnest.
  • The business media coverage in Poland has been balanced and is broadly in favor of the benefits that international competition and our entry into the market confer.

If you have any questions regarding this matter, please contact:
Derek Creevey
Phone: (212) 819-4834
E-mail: Derek.Creevey@Edelman.com