Dear Members and Leaders of the Communityasslamualaikum

September 17, 2013

Dear Members and Leaders of the CommunityAsslamualaikum,

As you may already be aware, theAlavi Foundation was scheduled to go to trial on September 16th, in the United States District Court for the Southern District of New York in a long-running action brought by the United States Government and a number of private parties to “forfeit” or take away essentially all of the Foundation’s properties and assets. On September 11th, with the Foundation ready for trial, the Court unexpectedly informed the Foundation’s lawyers of its decision to enter judgment against the Foundation based on the written submissions. The Court’s written decision was issued on September 16th. In the written decision, U.S. District Judge Katherine B. Forrest concluded that the Foundation’s primary asset and source of revenue—its majority interest in a partnership that owns the building located at 650 Fifth Avenue in Manhattan—and its bank accounts are subject to forfeiture to the Government. As a result of this decision, the trial scheduled for September 16th did not take place.

The Court concluded that the Foundation provided services to Iran in violation of federal law by managing the affairs of thepartnership and of the 650 Fifth Avenue building, and by assisting the Foundation’s partner to conceal its alleged owner. The Court made findings that the Foundation’s partner,an entity known as Assa Corporation, is indirectly owned by Bank Melli, an Iranian bank, and that the Foundation was awareor should have been aware of Bank Melli’s ownership interest. As a result of these findings, the Court concluded that the Foundation’s interest in the partnership and all funds in its and the partnership’s bank accounts are forfeitable to the Government.

The Foundation is disappointed that it did not have the opportunity to rebut the Government evidence before a jury. The Foundation categorically denies the Court’s findings and thus disagrees with its damaging conclusions.The Court has not yet reached a decision as to whether the Foundation’s properties in Queens, Virginia, Maryland, Texas, or California will be forfeited to the Government. However, given the Court’s opinion, the Court may ultimately make this determination.

Upon final judgment by the Court, the Foundation will have the right to appeal the Court’s decision. At this time, the Foundationfully intends to file an appeal and to seek a stay of the Court’s decision pending the appellate court’s review of Court’s decision.

If the Foundation is successful in obtaining a stay, the Foundation will seek to prevent any sale of its properties,including those at which the centers and theschools reside, while the appeal is pending. The Foundation will also seek the release of funds necessary to maintain the value and safety of its properties during the appellate process. If the Foundation is successful in its appeal, the trial that was scheduled to take place on September 16th will likely be rescheduled. If the Foundation is unsuccessful, then the Court’s decision will be affirmed and the Foundation’s property interests will be permanently forfeited.

We do not yet know when decisions will be made regarding the remaining properties, and we are informed that the appellate process can take up to a year or more. We will, however, provide the community with updates as we receive more information concerning the litigation.

It is absolutely clear that Alavi Foundation does not belong to any government or particular group of people. It belongs to you and all other honorable citizens of New York States and this country in which we live. Thus we must do what we can to preserve its assets in order to continue its long-standing charitable mission. Instead of destroying this unique charitable organization, those who have allegedly broken the law orwho have failed to enforce the law should be brought to justice.

Your awareness of these facts and your resolute support are needed and expected.

Alavi Foundation

Board of Directors