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Morgans Hotel issues rebuttal to OTK Associates statement

Morgans Hotel Group issued the following statement to its shareholders: "Given the needlessly inflammatory and disingenuous statements in the latest press release issued by OTK Associates in support of their effort to take complete control of our company for no consideration, we urge shareholders to review our upcoming earnings announcement, prospectus related to the rights offering and our proxy statement and other materials which will be filed with the SEC in the coming weeks... We do not believe it is productive to engage in an escalating battle of press releases with OTK. Rather, we will disclose the relevant facts in our filings with the SEC as would be customary and in accordance with SEC rules. We are confident our shareholders will appreciate receiving the facts in a fair and balanced presentation rather than through OTK's self-serving press releases. We believe our shareholders will benefit from this transformative transaction and our plan to grow and maximize shareholder value in the long-term."