Guardian Holdings Limited

Guardian Holdings Limited (GHL) has advised that the company has no material exposure to any of the following overseas institutions: AIG, Merrill Lynch, Lehman Brothers, Freddie Mac, Fannie Mae, and Bear Sterns. In the normal course of GHL business, the Group has portfolios of international quoted equities in several of its entities. These portfolios are managed by international managers, spread across numerous markets and are well diversified. The total Group exposure amounts to about US$40M or 2 % of the Group`s total investments (excluding cash and liquid investments under 90 days) and 1 % of its total assets. These foreign investments are certainly not immune to t he volatility in world markets caused by the events in the U .S. but we do not consider them a material risk for the Group. As at June 2008, GHL`s last published accounts, the Group had a relatively large exposure to one particular international financial institution which was Royal Bank of Canada as a result of the RBTT transaction. During the third quarter, the company has disposed of the Group`s holding in RBC at prices which are higher than applied at the end of the second quarter and therefore this investment has not resulted in a negative impact on capital and no longer represents a source of risk.