14 NOVEMBER 2008

General Matters

Since our update of 4 November 2008 I have continued to have discussions with various stakeholders regarding a sale of all or part of the business. Those discussions are of a confidential nature and I am not able to give more details. I appreciate that depositors would like more information regarding the current position but regrettably I am not able to provide details at this stage.

I would remind depositors that any sale will need prior approval by both the Isle of Man High Court and the Financial Supervision Commission. I am aware that high level discussions are also ongoing between other parties.

Statements

The Bank is in the process of sending statements as at 30 September 2008 to customers who would regularly receive statements. The statements will also contain a general letter to customers to update those who do not have access to the internet.

In line with the Bank's practices we will not be issuing September statements to fixed term deposit holders but as stated in previous updates we will send the statements as at 9 October 2008 to all customers once the accounts have been reconciled.

Funds in Transit

As stated in our update of 5 November 2008 letters have now been sent to all customers who had issued instructions to transfer funds prior to the appointment and where the Bank had started to take steps to process the transactions.

Customer Correspondence

Since my appointment we have sent over 5,000 individually addressed letters to customers to answer queries regarding the position of the Bank, specific transaction queries and in answer to emails and telephone messages. This excludes the statements mentioned above. We have sought to deal with customer queries promptly and fully but given the volume of correspondence and the limited information we can currently provide regarding the future of the Bank we appreciate that this has been a frustrating process for customers.

Contacts

As previously, the best way to make contact is to write to the bank or to email branch@singers.co.im. If you need to telephone the bank, please use the main switchboard number +44 1624 699222.

 

Mike Simpson

Liquidator Provisionally of Kaupthing Singer & Friedlander (Isle of Man) Limited