FOWLERWHITE

FOWLERWHITE ATTORN- vc- LAW BURNETT MIAMI • FORT LAUDERDALE • WEST PALM BEACH • ST. PETERSBURG August 2, 2007 Chief, Criminal Division United States Attorney's Office Southern District of Florida Re: Jeffrey Epstein Dear TELERAN FACS LILLY ANN SANCHEZ DIRECT PHONE No. DIRECT FACSIMILE No. As we discussed at Tuesday's meeting, and consistent with our view that no federal prosecution should lie in this matter, Mr. Epstein is prepared to resolve this matter via a state forum. We are in receipt of your memo regarding same and as the dynamics of the meeting did not allow for us to fully detail our proposal, we do so now. We believe that our respective positions are not very far apart and that a mutually agreeable resolution can be reached that will accomplish the interests of the United States Attorney's Office as well as those of the community. We welcomed your recognition that a state prison sentence is neither appropriate for, nor acceptable to, Mr. Epstein, as th