In the November 28 edition of the ASRI we reported on the involvement of organized crime in Japanese property and, in particular, that a small proportion of the assets that back Morgan Stanley Dean Witter & Co.'s property-related non-performing loan transaction, International Credit Recovery-Japan One Ltd., may be exposed to so-called "yakuza risk".

We have checked with our sources and it is clear that we were given some inaccurate information. In fact, Lombard Servicing, the special servicer wholly owned by Morgan Stanley, does not employ ex-police officials and the only strategy that Morgan Stanley and its affiliates employ to manage any problem loans are legal remedies through the Japanese courts. We apologize for the misunderstanding.

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