March 10, 1998

Letter to Creditors

RE: First Cayman Bank Ltd. (In Liquidation)

Dear Sir,

On December 4, 1997, First Cayman Bank Ltd. (“the Bank”) was ordered to be wound up and Messrs. Ian Wight and Michael Pilling were appointed Official Liquidators.

We are in the process of updating the accounting records of the Bank in order to provide depositors with current statements of account. The Liquidators initial estimate of the dividend likely to be achieved falls within the range of 25% to 40% of amounts deposited. The range is rather wide as there is a possibility of significant contingent liabilities. As we are still in the early stages of the liquidation, we cannot at present time advise as to when any dividend payment will be made and what percentage that would be.

We intend to contact those depositors and creditors who will be required to complete proof of claim forms by May 1998. At this time, we expect to be in the position to provide proof of claim forms along with an updated statement of account to support the amounts due to those eligible claimants of First Cayman Bank Ltd (In Liquidation).

We will continue to advise you of any significant developments in the liquidation process of First Cayman Bank Ltd. If you have any questions please do not hesitate to contact the undersigned.

Sincerely,
Margot MacInnis
for and on behalf of the Joint Official Liquidators