EXHIBIT 5
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BENNETT MANAGEMENT CORPORATION
2 Stamford Plaza - Suite 1501
281 Tresser Boulevard
Stamford, CT  06901
Telephone: (203) 353-3101
Fax: (203) 353-3113


July 10, 2006


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

Gentlemen:

I have previously written on behalf of Bennett Management Corporation
("Bennett") to register our strong objections regarding the recent announcement
by Kaiser Group Holdings, Inc. ("Kaiser" or "the Company") via 8-K that the
Board directed management to proactively seek "potential acquisition
opportunities". Converting Kaiser into some kind of publicly-held buy-out or
venture capital fund is a likely destroyer of shareholder value and should not
be pursued.

Two months have gone by since that announcement was made. In the interim, the
unfavorable Nova Hut arbitration ruling has been returned. Given that this was
the last large factor affecting Kaiser's valuation, and given that the
enterprise is largely cash or its equivalents, it is fairly easy to make an
assessment of what Kaiser is worth. Call it at least $40/share.

The Nova Hut ruling was released to the market place on May 16. Since that time,
the stock has hovered around $34/share, on little volume. That's a $6/share
discount to real value, and is a daily indication that the market fundamentally
finds Kaiser less appealing as a going-concern basis than it did as a
liquidation play.

Management has no demonstrable expertise in acquisitions, and certainly no
network or deal flow. To pursue this strategy is to ask shareholders to pay for
an uncertain learning curve. Why is this even being contemplated?

Regardless, it would seem incumbent on your part, having floated the idea of
re-deploying the Company's cash assets, to find a method for shareholders, who
do not favor this approach, a fair exit value. It is now clear that the market's
illiquidity and current share price do not provide




that. Bennett has suggested a tender offer as the fairest method, and pointed
out the benefits - the cessation of public reporting costs - to any shareholder
who would wish to continue to own Kaiser shares in this new corporate strategy.

Everyone, it seems to me, would benefit from a fuller and franker discussion of
these matters than what is contained in the 8-K on file.

Sincerely,

/s/  John V. Koerber
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John V. Koerber
Managing Director,
Bennett Management Corporation