**Gov. Bredesen has asked that the following email be distributed to
all UT employees.**

TO: University of Tennessee Faculty & Staff
FROM: Governor Phil Bredesen
DATE: August 8, 2003
SUBJECT: Resignation of Dr. Shumaker

This morning, on behalf of the Board of Trustees, I accepted the
resignation of Dr. John Shumaker as the President of The University
of Tennessee, effective immediately.

I asked Dr. Shumaker to meet with me and Board of Trustees Vice Chair
Clayton McWhorter yesterday afternoon.  Mr. McWhorter and I expressed
our deep concerns over the developments of the past several days.
Dr. Shumaker did the right thing and offered his letter of
resignation, which we formally received this morning.  It is in the
best interest of the university, its students, faculty, staff and
alumni to move forward and put these controversies behind us.

The past several weeks have been very difficult for The University of
Tennessee family. UT is a wonderful university with many
opportunities and it pained me as governor to watch this happening.

Mr. McWhorter and I will call a special meeting of the Trustees on
Thursday, August 21 to formally accept Dr. Shumaker's resignation and
discuss the terms of separation.

As you know, Dr. Shumaker has a contract as President through 2008,
which pays him $365,000 per year, plus incentive bonuses, deferred
compensation, an expense account, a home, an automobile, and other
related benefits. While Dr. Shumaker's resignation is unconditional,
Mr. McWhorter and I discussed with him appropriate severance terms
and agreed we would recommend to the full board that Dr. Shumaker be
paid his salary and accumulated deferred compensation through the end
of the year.  He will move out of his office immediately and he will
have up to 60 days to move out of the residence.  We believe this is
the most reasonable and responsible course to take for the taxpayers
and the university.

At the Board of Trustees meeting called for August 21st, we will also
determine who will step in and serve as interim president, as well as
discuss a timeline and process for selecting a permanent president.
We will be asking the executive committee of the board to come to
this meeting with recommendations for the full board to consider and
subsequently act upon.

I am hopeful that today's announcement will put an end to the
negative attention focused on the university over the last several
weeks. While this has certainly been a difficult time, I have been
impressed with the professionalism and resilience of the university
family during difficult times like these, the faculty and staff in
particular.  This bodes well for the long-term success of the
institution. The University of Tennessee is truly one of our state's
greatest assets. I am committed to ensuring we get it on stable
grounds to guarantee its success well into the future.

I hope I can count on your support and input as we work through these issues.