The Ministry of Finance is aware of the problems being experienced by customers of SGL Holdings Inc in getting their deposits repaid. At a meeting held on Wednesday July 23 with the Ministry of Finance, the company advised that the present challenges being experienced emanate from difficulties facing its trader, Olint TCI, located in the Turks and Caicos Islands. Olint TCI has had its assets frozen pending an investigation into its operations and until such time as this matter is resolved the Company is unable to make any payments to its customers. The Ministry of Finance wishes to make it clear that contrary to media reports, SGL Holdings does not fall under the Banking Act. In May 2007 SGL Holdings applied to the Grenada Authority for the Regulation of Financial Institutions (GARFIN) for a licence to conduct its operations. GARFIN immediately commenced the licensing process which entails extensive due diligence on the principals of the Company and its operations. Initially, the Company was being considered for a Money Services Business licence. However, during this process it was determined that SGL’s activities may not fall under this area. Consequently, the Eastern Caribbean Securities Regulatory Commission (ECSRC) was contacted for advice. Officials from the Commission met with SGL Holdings in Grenada on April 15, 2008 and by way of letter dated May 29, 2008 the Commission advised that the activities of SGL Holdings constituted the operation of a “collective investment scheme”. This amounted to “securities business” as defined under the Securities Act 2001 and therefore the Company fell to be regulated by the ECSRC. The Commission further directed that SGL Holdings cease and desist from conducting securities business and apply for the necessary licence. The Company ceased accepting new deposits and was in the process of preparing its application to the Commission for the relevant licence. The Company has advised that its trader remains committed to fulfilling its obligations once the restriction on its assets is lifted. Efforts are being made to ascertain from the authorities in the Turks and Caicos Islands the status of the investigations. The Ministry of Finance continues to monitor the situation and will be in contact with the ECSRC as the official regulator for collective investment schemes. The Ministry of Finance is aware of the problems being experienced by customers of SGL Holdings Inc in getting their deposits repaid. At a meeting held on Wednesday July 23 with the Ministry of Finance, the company advised that the present challenges being experienced emanate from difficulties facing its trader, Olint TCI, located in the Turks and Caicos Islands. Olint TCI has had its assets frozen pending an investigation into its operations and until such time as this matter is resolved the Company is unable to make any payments to its customers. The Ministry of Finance wishes to make it clear that contrary to media reports, SGL Holdings does not fall under the Banking Act. In May 2007 SGL Holdings applied to the Grenada Authority for the Regulation of Financial Institutions (GARFIN) for a licence to conduct its operations. GARFIN immediately commenced the licensing process which entails extensive due diligence on the principals of the Company and its operations. Initially, the Company was being considered for a Money Services Business licence. However, during this process it was determined that SGL’s activities may not fall under this area. Consequently, the Eastern Caribbean Securities Regulatory Commission (ECSRC) was contacted for advice. Officials from the Commission met with SGL Holdings in Grenada on April 15, 2008 and by way of letter dated May 29, 2008 the Commission advised that the activities of SGL Holdings constituted the operation of a “collective investment scheme”. This amounted to “securities business” as defined under the Securities Act 2001 and therefore the Company fell to be regulated by the ECSRC. The Commission further directed that SGL Holdings cease and desist from conducting securities business and apply for the necessary licence. The Company ceased accepting new deposits and was in the process of preparing its application to the Commission for the relevant licence. The Company has advised that its trader remains committed to fulfilling its obligations once the restriction on its assets is lifted. Efforts are being made to ascertain from the authorities in the Turks and Caicos Islands the status of the investigations. The Ministry of Finance continues to monitor the situation and will be in contact with the ECSRC as the official regulator for collective investment schemes. Ministry of Finance 440-2731/435-0057