Official statement of Senbel re: richmnd's allegations

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January 17, 2006

Dear Tsikot.com members

I was informed of this very bad undertaking by this fellow, Richmond (Palad?) with regard to our product, Estrol Biodiesel, and our company, Senbel Fine Chemicals. Let me assure you that I will not let this go without accountability. Mr. Richmond has “maliciously maligned” our company’s reputation without basis.

This sales gimmick perpetrated by Mr. Richmond Palad is, to say the least, very disturbing and totally unprofessional. I understand that he is one of the independent sales agents of Chemrez, but I am very sure that Messrs. Jun and Dean Lao will not tolerate such kind of behavior nor do they have a hand in this. I know them personally having cooperated on all fronts in pushing biodiesel as a better fuel alternative in the country. Moreover, biodiesel has a beneficial impact in our social, economic, and environmental sectors. Besides, it will contribute greatly in lifting the coconut sector out of poverty while contributing to cleaner air.

To answer in brief the issues raised by Mr. Richmond Palad:

1.Senbel continues to be compliant with the DOE PNS Standards

2.Senbel has not been sued. Furthermore, we dare say that no legal action by any other entity is being contemplated arising from quality standards of Senbel’s “Estrol Biodiesel.”

3.DOE and/or other government agencies have not and are not contemplating on issuing a cease and desist order against Senbel. Senbel continues to produce its “Estrol” biodiesel in its Lucena plant and foresees continuing so in the long term.

4.Korean and European testing agencies have vouched in the past for the quality set by “Estrol.” Continued export orders attest to this fact.

We have instructed our legal counsel to study how we can have Mr. Richmond be held accountable for what he has done.

As I can not access tsikot.com since it has been a long time since I used it, I am in a situation where at the present moment, I need to have our official response sent via fax.

I hope we have cleared the air (pardon the expression) triggered by baseless claims and allegation by Mr. Richmond Palad.

Regards,

Sandy T. Santos
Vice President – Sales & Marketing