FOR IMMEDIATE RELEASE - Friday, July 12, 2002

FOR FURTHER INFORMATION - David M. Smith, Division of Revenue (302) 577-8958

TOWNSEND MAN RECEIVES

PROBATION FOR TAX VIOLATIONS

(Wilmington, DE) – William M. Remington, Director of Revenue announced today that Phillip A. Dye, 57, was sentenced by NCC Superior Court Judge Jerome O. Herlihy to 7 years in jail, suspended for 7 years probation, for numerous income tax violations.

NCC Judge Herlihy also ordered Dye to pay $6,643 in restitution to the Division of Revenue and imposed court-ordered fines in the amount of $600.

Dye was convicted by a jury on May 31, 2002 on two felony counts of tax evasion and an additional three misdemeanor counts of failing to file his Delaware personal income tax returns.

The two felony counts arose from an investigation conducted by the Division of Revenue’s Criminal Investigation Unit, whereby Dye understated his income in tax years 1995 & 1996 by more than $90,000. The three misdemeanor counts resulted from Dye’s failure to file Delaware income tax returns for the years 1998, 1999, and 2000, whereby his adjusted gross income in these years amounted to more than $150,000.

Dye unsuccessfully argued that his salary, from E.I. Dupont and the Delaware National Guard, was paid to a constructive trust and therefore not taxable to him.