Dear Mr Greene

We refer to your email addressed to Mike Simpson which refers to your
discussions yesterday and raises two points which you state are worth
repeating. Mr Simpson has asked us to respond, which we do below using
your numbering:-

1. Your comments in relation to the potential effect of the Scheme of
   Arrangement and the need to preserve any claim under the parental guarantee
   are noted. We have been instructed to give the matter further
   consideration in conjunction with our Client's Icelandic adviser. We will
   revert to you on this point shortly. Our client has however commented that
   it is important to bear in mind the probably commercial value of the
   guarantee.

2. Your recollection that it was agreed that interest after 9th October
   will be included in the value of the claim for voting purposes is not
   correct. Mr Simpson did not agree this. The correct position is clearly
   set out in paragraph 12.5 of the Explanatory Statement.

Regards

Yours sincerely

Cains