TO: Interested Parties

RE: Personnel Board Update

DATE: September 23, 2008

Today we learned that Governor Palin’s attorney and Timothy Petumenos have agreed on the parameters of a thorough and unbiased
investigation into the dismissal of Commissioner Walt Monegan. Gov. Palin’s counsel, Tom Van Flein, and Petumenos, the independent
investigator appointed by the Personnel Board to conduct the inquiry, have discussed specific requests for documents – including
emails – that will allow the investigation to proceed quickly and thoroughly.

As Gov. Palin has consistently stated, she has nothing to hide and welcomes a full review of the facts regarding the Monegan matter.
Unfortunately, due to the partisan agendas of Hollis French, Kim Elton and Steve Branchflower, the Legislative Council’s inquiry was
irreparably tarnished and incapable of producing an unbiased outcome. Gov. Palin is confident the Personnel Board inquiry will remain
non-partisan and respectful of the principles of fundamental fairness.

Below is some general guidance regarding the Personnel Board:

What is the Personnel Board?

Established under Alaska state law, the Personnel Board is a three-member independent, bipartisan agency charged with overseeing
possible violations of ethics and labor rules involving state employees.

Why is the Personnel Board the appropriate venue for this investigation?

Under Alaska law, the Personnel Board has jurisdiction over any and all oversight of possible improprieties regarding dismissal of
Alaska state employees. The Alaska Constitution states that all persons are entitled to “fair and just treatment” during legislative and
executive proceedings. The Legislative Council inquiry, led by Stephen Branchflower, has been hijacked by Obama supporters
Senators Kim Elton and Hollis French and has been irreparably tainted by their partisan agendas. Therefore, the Personnel Board is the
appropriate venue for this investigation.

Who will lead the Personnel Board investigation into the dismissal of Walter Monegan?

Timothy J. Petumenos, a registered Democrat and former prosecutor, was elected by the Personnel Board to lead the investigation into
the dismissal of Walter Monegan. Petumenos will determine the existence of probable cause of an ethics act violation stemming from
the reassignment of Commissioner Monegan. If there is no probable cause, the case will be dismissed; if Petumenos finds probable
cause, he will file a formal complaint with the Personnel Board, which will conduct a hearing over the alleged violation.

Does the Governor appoint members of the Personnel Board

Members of the Personnel Board are appointed by the Governor to six-year terms and must be confirmed by a joint session of the
legislature. Governor Frank Murkowski appointed each of the current members of the Personnel Board. Governor Palin re-appointed –
and a joint session of the legislature confirmed – the one member whose term expired since Palin became governor.

Do members of the Personnel Board serve at the pleasure of the Governor?

No, members of the Personnel Board are not at-will employees and may be removed only for cause. During the Murkowski
administration, Personnel Board investigations initiated by Sarah Palin led to the resignations of two high-ranking Governor Murkowski
appointees, demonstrating the Personnel Board’s willingness to investigate the executive branch that appointed them.