Hamilton, Bermuda: 11 September 2002 - Shareholders were paid a first interim capital distribution on 30 August 2002 representing a pro-rata redemption of approximately 55% of their shares in the Fund, in accordance with the Alternative Proposal contained within the Circular to shareholders dated 27 March 2002. The Directors have considered the liquidity of the Fund, and have resolved to pay a second interim capital distribution of $5m on 13 September 2002, as a further pro-rata redemption of shares in the Fund based on the Net Asset Value per share at that time. The Directors have received a letter from the Fund's auditors stating that nothing has come to their attention to indicate that the Fund does not have sufficient funds to make this second interim capital distribution.
The resultant net assets attributable to shareholders will be approximately $11.4m, the majority of which is held through the Investment Services and Returns Agreement ("the Agreement"). Under the Agreement the Fund is entitled to the Fund Deposit and the Outstanding Service Charge, the repatriation of which are determined by the terms of the Agreement.
It remains the Directors' intention to distribute the Fund's remaining assets to shareholders in a timely and efficient manner, when circumstances permit.