EXHIBIT 2



Bennett Management Corporation
2 Stamford Plaza - Suite 1501
281 Tresser Boulevard
Stamford, CT  06901
Telephone:  (203) 353-3101
Fax:  (203) 353-3113

To:  Board of Directors
     Kaiser Group Holdings, Inc.

c/o  Mr. Douglas W. McMinn,
     Chief Executive Officer
     Kaiser Group Holdings, Inc.
     9300 Lee Highway
     Fairfax, VA  22031
     Fax:  (703) 934-3199


April 28, 2006


Gentlemen:

I write on behalf of Bennett Management Corporation to register our strong
objections, and communicate our concern, regarding the recent announcement by
Kaiser Group Holdings, Inc. ("Kaiser") that it may seek "potential acquisition
opportunities". This cryptic statement quite astonishingly seems to contemplate
converting Kaiser into some kind of publicly-held buy-out or venture capital
fund. This novel strategy is a likely destroyer of shareholder value and should
not be pursued.

As you know, Bennett and its affiliates manage funds that together own 200,000
shares (approximately 11.2%) of Kaiser's common stock. We have been a
significant shareholder of Kaiser since its exit from Chapter 11 in late 2000.
Kaiser has been in liquidation since that time. Our investment thesis, which we
believe is shared by many of Kaiser's shareholders, is that the only rational
course of action for Kaiser, having reached the final stages of that
liquidation, is for Kaiser to distribute its value to its shareholders.

Until your recent announcement, in a Form 8-K filed with the SEC on April 25,
2006, no one reviewing Kaiser's public pronouncements reasonably could believe
that Kaiser would do anything other than liquidate. Kaiser no longer has any
businesses or core competencies that reasonably could form a basis for building
significant value. Certainly, its management team does not appear to have the
background, depth or aptitude to support an attempt to convert Kaiser into a
buy-out fund. As the financial press repeatedly has pointed out, the marketplace
is full of buy-out funds of all difference types and sizes, which are actively
and aggressively touring the business world for acquisition opportunities. Many
of those funds are assisted in this activity by extraordinarily talented and
experienced professionals. Without meaning any



disrespect whatsoever to Kaiser's current management team, it begs credulity to
think they could compete in this marketplace.

More importantly, perhaps, even if you believe this management team truly is in
fact capable of turning Kaiser into a mini-KKR, fact of the matter is, that's
not what the current shareholders bought into, and it's not what many of us
want. We believe it is inconsistent with your fiduciary obligations to condone
such an abrupt and fundamental change in corporate direction without at the very
least arranging a fair-value exit for the shareholders who do not wish to hold
the fundamentally different security you apparently propose to create.

We hope you will reconsider the foolhardy course of action announced in your
recent Form 8-K. If you are unable to do so, we will have no alternative but to
consider the various options available to us.


Sincerely,


/s/ John V. Koerber
-------------------------------

John V. Koerber
Managing Director,
Bennett Management Corporation