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AGBU: Cyprus Supreme Court Rules in Favor of AGBU re Melkonian

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Phone: 212.319.6383, x118
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PRESS RELEASE

Tuesday, January 9, 2007

The Supreme Court of Cyprus Rules in Favor of AGBU in the Matter of
its Melkonian Property

AGBU has prevailed in its appeal of the Conservation Order that the
Interior Minister of the Republic of Cyprus had issued in 2004, later
upheld by the Council of Ministers, restricting the use of the AGBU
Melkonian property in Nicosia.

On December 11, 2006, the Supreme Court of Cyprus (Judicial Review
Jurisdiction) rescinded the Conservation Order for lack of
justification. The opinion of the Court written by Hon. Justice
D. Hadjihambis finds the order excessive in scope and in violation of
the principle of proportionality.

The Court has further determined that the Republic of Cyprus has to
bear AGBU’s legal costs in the amount of CYPounds 400.

Separately, the Supreme Court of Cyprus (Appellate Jurisdiction) in a
unanimous opinion dated December 21, 2006, written by Hon. Judge
A. Krambis, has ruled in favor of AGBU in its appeal of an
Interlocutory Order that the District Court of Nicosia had issued on
February 3, 2006, upholding the petition of His Beatitude Archbishop
Mesrob Mutafyan, Armenian Patriarch of Istanbul and All Turkey, to
restrain AGBU from selling, alienating, or changing the use of the
Melkonian property. Patriarch Mutafyan was seeking a declaratory
judgment that the Melkonian property was held by AGBU "in trust" and
"the re-registration of the said property in his name as trustee for
the Armenians all over the world."

The Supreme Court of Cyprus has recognized AGBU’s full ownership
rights to the property. Quoting extensively from the relevant parts of
the Deed of Transfer of 1926, the Court states that AGBU’s "ownership
of the [Melkonian property] and the right of disposal etc…..was
without the conditions and restrictions invoked by the Respondent."

The Interlocutory Order of the District Court of Nicosia was set aside
and dismissed. The Supreme Court of Cyprus has determined that the
Respondent, His Beatitude Patriarch Mesrob Mutafyan, must pay AGBU the
costs of the first instance proceedings and the costs of the appeal.

Established in 1906, AGBU () is the world’s largest
non-profit Armenian organization. Headquartered in New York City with
an annual budget of $36 million, AGBU preserves and promotes the
Armenian identity and heritage through educational, cultural and
humanitarian programs, annually serving some 400,000 Armenians in 35
countries.

For the Armenian version of this press release, please visit

www.agbu.org
www.agbu.org
www.agbu.org
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