Metropolitan Worldwide of Nashville, its subsidiary Bel Air International in Hallandale, Florida, and NicStic of Zurich, Switzerland have negotiated to cease all pending legal proceedings between parties and their board members.

Bel Air President Evert Wilbrink stated that "with the shareholders of NicStic making the welcome decision on 30 June 2006 of overhauling their full board of directors, as well as the complete management of NicStic and appointing the acclaimed Hans-Jorg Gutknecht as chairman of the board, we trust that we are back on track trying to achieve a common goal." As soon as the new board of NicStic was appointed, Gutknecht, the new chairman of NicStic, contacted MWWM and signed a practical business settlement with MWWM chairman Michael Berresheim, including acknowledgment of the previous contracts between NicStic and MWWM. MWWM chairman Michael Berresheim commented: "Legal action is only destroying our shareholder value. We have to concentrate in looking forward to develop our smokeless cigarette to fulfil our markets demand. We appreciate the immediate efforts of Gutknecht of NicStic. Combining our resources would enable us to adequately position our smokeless alternatives into the cigarette market and improve the potential worldwide success of the Bel Air and NicStic product." The signed contract that completed the first round of negotiations will be submitted to board of both companies for approval, hopefully before the end of August 2006. (pi)