10 October 2006 — DFSA Accepts Enforceable Undertaking from Montpelier

Dubai, October 10, 2006: The Dubai Financial Services Authority ("DFSA") has accepted an Enforceable Undertaking from Montpelier (Labuan) Limited and Montpelier Group (Europe) Limited ("Montpelier") signed by two of its senior officers, David Yelloly, Chief Executive Officer and Stuart Williamson, Managing Director for Asia-Pacific. This followed an investigation into Montpelier's false representations concerning its regulatory status with the DFSA and the DIFC.

The DFSA took action after receiving complaints that misrepresentations had been made to members of the public whereby Montpelier had falsely held out that it was licensed or has applied for a license with the DFSA or DIFC and has directly or indirectly used these representations to induce members of the public to become its clients. Montpelier had not applied for authorization in any capacity with the DIFCA, DIFC or DFSA, but nevertheless represented to members of the public that an application for authorization with the DIFC and DFSA had been made. Further Montpelier has no office in the DIFC and the address listed on their written materials at Knowledge Village, Dubai, is a serviced office with no apparent business operations.

As a result Montpelier has agreed to Terms and Conditions which are set out in the 'DFSA Enforceable UndertakingDFSA Enforceable Undertaking' pursuant to Article 89, Regulatory Law No. 1 of 2004, a copy of which may be obtained from under 'Publication/Media' — and relevant media release.

This is the first Enforceable Undertaking obtained by the DFSA under the Regulatory Law.

David Knott, DFSA Chief Executive, stated: "It is important that investors are not misled about the regulatory status of financial firms and advisors.

This Enforceable Undertaking sends a clear signal that the DFSA will take action against any party that misrepresents its regulatory status within the DIFC."