JPS Jamaica Debt Exhange Programme

Jamaica Public Service Company Limited (JPS) did not participate in the Jamaica Debt Exchange Programme (JDX) and therefore it is not a material event in the context of the Company’s business and affairs. Accordingly, the financial statements of JPS will not be affected nor will the reporting periods be affected and finally, no strategies therefore need to be employed to safeguard shareholders’ interest.

As regards JPS’ current US$320M debt portfolio, the JDX Programme could have a positive impact on the Company’s overall results, but again the effect of this would stand to be determined depending on any resulting lowering of interest rates and whether the Company is able to renegotiate any existing loans.

As regards the Pension Fund, we understand that the Fund did participate in the JDX Programme but there was no negative effect on the balance sheet of the Pension Fund. However, there may be some, albeit insignificant effect on the Financial Statements and consequently, an indirect effect on the Pension surplus on a going forward basis. In other words, the JDX Programme may have the effect of lowering the returns on the investment of the Pension Fund which impact could affect the pension surplus going forward. However, any such impact would be identifiable at the end of this year (2010).