LWI: Prolongation and update

Dear Investors

LWI is a derivative which participates on the increase of an index composed of 10 major shares at WSE.

The derivative will expire on 18th January 2008. At actual index rates the reference index of the product is still in the minus (812.48, today, 24th December 2007) which means that the actual investors will only get 0.95 $L back per share.

However, we all know how volatile the markets are and awesome opportunities are likely to come with WSE 4.0 in mid-Janaury which will bring in new customers from RL but also economy in SL is recovering if we look at SL market data. The index still can jump till that date.

LWI is a very handy way to participate on the increase of shares of listed companies without being forced to spend your time to follow share prices etc. You even don't have to worry about the dividends as they are automatically included in the index calculation. A special thank you is given to Brodsky and his www.slquotes.com system;-)

In fact the index looks right now much worse as it really is. HCL is important to watch, as they only pay dividends tri-monthly and didn't last time which is harming the share. However, we see this is likely to change in 2008 with increased volums and the new opportunities! DDE, HOT and LEM are off SPO and have to find a new evaluation level. ETC is planning to expand and will come up with a SPO. RDX we see potential, either over her growing real estate empire or her RL committments. LLL is a steady value and outperformed in the index (60% win). HUI is also steady, ALL continues to improve and LGO is at the moment under observation. Probably we will change this value with something which is not scripting focused. CAR, PPL, APZ are possible candidates.

Considering overall market situation we believe that LWI will grow significantly during the next 6 months. If it grows you can participate with 95% and even >100% on the increase (dividends included). That is way we think LWI is an interesting product. Calculation details are given in our prospectus.

What we suggest is the following:

(a) Expand end spot date from 18th January 2008 to 18th July 2008 => vote YES
(b) Close LWI and pay back investors money. For actual index 812.43 this value will be 0.95 $L/share => vote NO!

If you vote for (a) we will WSE ask to approve a SPO on 18th January. Share price 1 $L/share. Maximum outstanding shares 500'000 shares.

IF you have questions dont hestitate to IM me or send me an e-mail..casper.trebuchet@gmail.com

Greetz

Casper Trebuchet

House of derivatives (LFB, LWI, LHH)

http://lemurinvest.blogspot.com