Financial report - May 2009

LEM:ISE ended May 2009 with a profit of 41’671 (34'227) $L before dividend payment. NAV declined to 1.71 (2.04) $L/share. The dividend is set to be 0.015 (0.015) $L/share and was distributed just before

May was a stable month.

LEM started to sell its position in DDE because we will not IPO our latest derivative which is a basket on different companies at ISE. As a result we want to reduce our portfolio and invest the “liberated funds” differently. As we have written it at different other occasions we consider that our portfolio is too large in relation to the other assets. In selling some shares we can reduce our risk considerably and also produce a more sustainable NAV.

In consequence the NAV sank from 2.04 down to 1.71 $L/share. However, we have to consider that it is extremely difficult to estimate a NAV in virtual markets, especially as the liquidity is low what makes it rather difficult to sell the shares for a good price. As we sold 70’000 shares of DDE we reduced our portfolio already in a significant way which helps to stabilize the value of the remaining assets.

Those obtained funds are kept right now mostly on the currency exchanges in cash. LEM is not excluding that we will reinvest some of the funds in virtual shares again when we think the price is appropriate.

The profit is higher this month as we could consider two dividend payments of RDX. This might have a negative impact on the results of next month. We hope, however, that other earnings can be generated which will more than compensate those effects. We also have to consider that CAR only paid a part time dividend and others none.

LEM is paying a dividend of 0.015 $L which is a pay out ratio of 48%. The remaining rest of the profit will be reinvested.

The balance sheet and PL-sheet is given below

Our outlook for June is stable. We cannot guarantee the level of income as it continues to depend partly on the future of currency exchanges in SL and the outcome of different investment projects which are in elaboration.

Don’t hesitate to ask questions. You can reach me per IM, in the forum or directly over my email : casper.trebuchet@gmail.com

Greetz

Casper Trebuchet
CEO, LEM:ISE
http://lemurinvest.blogspot.com