This issue was brought up recently. I received this email from Morel USA
today.

January 2004


Dear Valuable Customer,

I am writing this letter on behalf of my company, Morel Acoustics USA, Inc.
It is important that I address what has become a pressing issue. Over the
course of this past year, false accusations have been made against Morel
Acoustics USA by a company named, Morel (IL). They allege that we have been
using their name and imitating their products. On the contrary, we feel
that Morel (IL) is using the name "Morel" illegally in the United States.

It is unfortunate that I find myself writing a letter like this. It is not
my intention to put business-minded customers in the middle of this mess,
but as my name and organization continue to be attacked, and my integrity
questioned, I feel that some kind of formal response is necessary.

I started this company over 26 years ago. I was the first person to
introduce the Morel name to the U.S. and world market at the Chicago CES
show in June, 1978. From the beginning, I had been designing speakers with
Meir Mordechai and, as a result of the potential that he saw developing,
Meir decided to join me as a partner. In 1981, we incorporated Morel
Acoustics USA, Inc. Over the next nine years, our company introduced many
new products that included raw drivers, car speakers, and home speakers. At
the end of 1989, Mr. Mordechai sold all of his shares in the company to me,
Mikhael Shabani. From this point forward, I was the sole owner of Morel
Acoustics USA, including the name and all of its assets. A few months
before this transaction Mr. Mordechai illegally registered the Morel logo
under his own name without my knowledge. I did not find out about this
until long after he had left the company. I had paid him a large sum of
money when I purchased his shares only to discover he had abused his powers.
This was the first in a long series of events that led to the deterioration
of my professional relationship with Meir and his staff.

Mr. Mordechai is currently the owner of Morel (IL) in Israel. As mentioned
above, Morel (IL) and its staff have continued the verbal and written
accusations. I want to assure you that these accusations are completely
unfounded. We are the original Morel company. Our products are genuine and
based on designs by our own staff. Furthermore, all of our home theatre
speakers and most of our car speakers have a totally different look than the
product Morel (IL) is selling.

At the 2004 CES (January 8th-11th) we introduced a number of new products.
The most exciting was the Chorus floor speakers - a very small cube shaped
speaker (just under 1 cubic foot) that uses a single 6.5" UniDrive driver.
The suggested retail price is $795.00 per pair and will be available in late
February/early March. The concept of the design and dispersion pattern of
the sound is very unique. Please contact us for more details.

We also introduced a 6.5" inch and a 10" car subwoofer, a new car tweeter
(Triumph!) and a re-designed MR-55 soft dome midrange.

For raw drivers we introduced a new shielded magnet tweeter (MSM-94) and
upgraded MDT-33se soft dome tweeter. The MSM-94 features hexagonal aluminum
voice coil wire, aluminum former, aluminum face plate, treated silk dome and
99% magnetic shielding. The MDT-33se is an improvement over the MDT-33.
The damping material has been changed and the solution used to treat the
silk dome has been improved. The end result is 0.5dB more efficiency,
smoother sound and better detail. The MDT-33se is already available.

I thank you for supporting us in the past and hope to serve you in the
future.


Best Regards,

Mikhael Shabani
President, Morel Acoustics USA, Inc.



morel acoustics usa, inc.
414 harvard street
brookline, ma 02446 usa
tel ~ 617.277.6663
fax ~ 617.277.2415