This update covers the forthcoming Court hearing, the JJB Sports plc shareholding, the Early Payment Scheme being offered by the Isle of Man Treasury, the issuing of statements and a potential website fraud.

I also draw your attention to the details of my next conference call posted at the end of this update.

Forthcoming Court Hearing on 29 January 2009

In preparation for the Court Hearing on 29 January 2009, I will be submitting an Affidavit which will contain an update in respect of the Liquidation Provisionally and will contain an estimate of the assets and liabilities of Kaupthing Singer & Friedlander (Isle of Man) Ltd ("KSFIOM") as at 9 October 2008. I would stress however that this should not be taken as an estimate of what may be realised in due course in respect of the assets, nor in respect of the potential total liabilities of KSFIOM as there continue to be a number of uncertainties in respect of certain assets and as Liquidators Provisionally we are not in a position to start the formal process of calling for claims. A copy of my Affidavit will be available on the website once it has been lodged with Court.

JJB Sports plc Shareholding

Prior to the appointment of Joint Liquidators Provisionally on 9 October 2008, KSFIOM had entered into arrangements with Kaupthing Singer & Friedlander Ltd ("KSF UK") which were backed by collateral arrangements. Following the termination of those agreements, KSFIOM obtained rights to certain shares which had been lodged as collateral. One of these shareholdings is in JJB Sports plc.

As a result, KSFIOM believes it has an obligation to lodge certain regulatory notifications confirming ownership of the relevant listed shares. In a press release issued on 14 January 2009 I was quoted as saying:

"In respect of the JJB Sports plc shares, I will be taking a careful and considered approach in respect of the collateral shares, particularly given the material size of the shareholding. I have and continue to take advice in this regard. I would stress that there is no requirement for me to dispose of these positions within a set timeframe or in a time pressured manner and that my role is to optimise the recovery for creditors."

Early Payment Scheme from the Isle of Man Treasury

The Isle of Man Treasury has sought approval from Tynwald for making a payment to depositors of £1000. The Treasury requested that we send a claim form to all customers on their behalf so that depositors can arrange for them to be completed and returned.

If you have any queries relating to this Early Payment Scheme, a dedicated helpline has been set up by the Isle of Man Treasury which you can reach on +44(0)1624 685 858.

Edge and Online accounts

As stated in my last update, the Edge and online accounts are available in a "READ ONLY" format. Online access will remain open until the end of February 2009.

Statements

We have issued statements outlining balances as at 9 October 2008. Accompanying these statements was a letter explaining the treatment on certain accounts such as fixed term deposits, which was also explained in a prior update. Please note that statements to South Africa, Zambia, Nigeria, Botswana, Zimbabwe and Libya have been sent via e-mail as well as by normal post services due to inconsistencies in the post services operating in those countries.

Together with the statements we sent an information sheet to customers requesting confirmation of their details, this is in addition to the form referred to above as it is to ensure that the Bank's current information is up to date and accurate. The form also enables customers to confirm alternative bank account details for any future payments which could be made electronically.

Website Fraud

I would draw your attention to any correspondence you may receive from Kristen Heather Investment plc which appears to have cloned, without authority, the KSF website. We understand that this company is purporting to hold funds on account for the benefit of depositors which will only be released following the payment of a "release of funds fee." This appears to be an entirely fraudulent endeavour and the Isle of Man Financial Supervision Commission (the "FSC") has issued guidance to the effect that any communications from Kristen Heather Investment plc or the corresponding website www.ladbonline should be disregarded.

Any persons who have already been involved in dealing with the entity and have concerns should contact the Enforcement Division of the FSC on +44(0)1624 689 311.

Clarification of question raised in the conference call on 12 January 2009-01-16

The question was raised as to how the Financial Services Compensation Scheme ("FSCS") ranks as a creditor in the Administration of the Kaupthing UK. It is my understanding that the FSCS rank "pari passu" with all other creditors, that is to say, they rank equally alongside other creditors, with no preference given.

Telephone conference dial in details

Following discussions with the Depositors Action Group I have set up a third conference call which will take place on Monday 26 January 2009 4:00 pm GMT.

I am making the access details generally available to depositors. If you wish to listen to the call, you will need to register in advance. Please click the link to register.

https://cossprereg.btci.com/prereg/key.process?key=PXUFB9G4D

Participation will be on a listen only basis. The facility is provided by a third party and accordingly there is a cost per head for usage. Should any party register and then not attend the liquidation will be charged.

The number of lines is limited and I would request that only those depositors who are able to make the call register as we will make the audio recording of the call available on the website for those of you who are unable to attend. Should depositors choose this route to listen it will significantly reduce the costs.

Contacts

As previously, the best way to make contact is to write to the bank or to email branch@singers.co.im. If you need to telephone the bank, please use the main switchboard number +44 1624 699222.

Mike Simpson

Joint Liquidator Provisionally