FOR IMMEDIATE RELEASE
Friday, June 15, 2001

FOR FURTHER INFORMATION

Becky Smalley
(302)577-8667
rsmalley@state.de.us

Fenwick Island Restaurant Owner to Pay Back Taxes to Avoid Closure

(Wilmington) - William M. Remington, Delaware Director or Revenue, announced today that Ronald Rick McGee, corporate officer of Libby's Group, Inc., and Libby's Restaurant, Inc. a popular restaurant on Fenwick Island must pay back taxes in full to keep his business open.

In an order, entered by Court of Chancery's Vice Chancellor Stephen P. Lamb, McGee admitted to the business' failure to pay withholding and license/gross receipts taxes in excess of $167,000 to the State of Delaware. McGee also consented to the entry of the injunction sought by the Department of Finance, Division of Revenue, in its suit filed on March 15, 2001.

The court order provides that the injunction will be stayed, enabling the business to remain open under specific terms and conditions which include payment of $75,000.00 by June 21, 2001, with the entire remaining balance of the obligation to be paid on or before July 20, 2001.

The business must also remain current in the filing and payment of all new tax obligations and is required to set up an Internet filing program acceptable to the Division of Revenue. If the business defaults in any of the terms and conditions, the stay will be lifted and the business closed.

Mr. Remington urges business to voluntarily contact and work with the Division's trained representatives to resolve outstanding tax liabilities owed to the State of Delaware. If the Division is forced to file for an injunction against a business to obtain compliance with the law, the options available to the business to resolve the tax liability are limited. In Libby's case, the business is required to make payment in full and is subject to a zero tolerance provision with regard to the filing and payment of taxes in the future to avoid being shut down.

Mr. Remington further urges business taxpayers to be aware of laws that can shut down their businesses for failure to pay their tax liabilities. Libby's Restaurant and Mr. McGee acted as though they were immune from the tax laws. "We will continue to seek remedies through the courts against any taxpayer who willfully fails to comply with the State of Delaware tax laws and is unwilling to work with the Division of Revenue to arrive at a reasonable payment option."