G.T.L. Bullmore and S.L.C. Whicker, partners of KPMG in the Cayman Islands were appointed as Joint Provisional Liquidators ("JPLs") of National Warranty Insurance RRG ("NWIC") on June 6, 2003.

Since that time, the JPLs and their staff have been assessing the financial condition of NWIC. Immediately following the appointment of JPLs serious concerns arose about the solvency position of NWIC irrespective of whether the specific commercial issues raised by the directors could be satisfactorily dealt with. Therefore on Monday June 9, 2003 the decision was taken to stop authorizing or paying any claims and to stop underwriting any new policies on all insurance programs. This step was taken in order to protect NWIC's general body of creditors whether present, future or contingent. This work is ongoing to accurately establish the financial condition of NWIC.

The JPLs have considered certain commercial issues facing NWIC during the last 12 days and initial conclusions are that these issues will only confirm the view that NWIC is, or shortly will become, insolvent. Accordingly, the JPLs' current recommendation to the Court when it hears NWIC's petition will be that NWIC be placed into liquidation. NWIC's lawyers will advertise the winding-up hearing time and date once this information is known. Any creditor may attend that hearing or appoint local counsel in the Cayman Islands to ensure that they have representation should they wish to do so.