Securities Investor Protection Act (‘SIPA’) customer claims - update

This update builds on previous information provided in respect of the SIPA claims process and published on the website as follows:

1. Client money and assets update - SIPA customer claims - 20/01/09

2. Trust Property FAQs - 25/03/2009 – Client Assets question 5

Update on Current Status of LBI SIPA customer claim

1. LBIE undertook an extensive review of its books and records and submitted an omnibus estimated claim on behalf of LBIE’s clients on 30 January 2009. The contents of this claim are the cash, securities or other assets that were held by Lehman Brothers Inc. (“LBl"), the U.S. broker-dealer entity, on behalf of LBIE clients.

2. On 27 January 2009 the Joint Administrators, SIPC and the SIPC Trustee reached an agreement for the purposes of facilitating the filing by LBIE of claims against LBI.

3. This agreement permitted LBIE to file an estimated omnibus claim against LBI on behalf of LBIE's customers. The agreement provides for certain procedures for perfecting these claims.

4. Specifically it contemplates that LBIE will provide responses by each customer to questions on the SIPA claim form, and to submit a customer signature or other evidence of authority to file a claim on a customer's behalf. LBIE has agreed to use reasonable efforts to obtain customer signatures without prejudice to any argument that LBIE is authorised to file claims on behalf of its customers on any other basis.

5. Since meeting with the LBI Trustee’s advisors in March 2009 LBIE has been supplying workbooks for each LBIE customer comparing relevant securities extracted from the customer’s Trust Property claim with the customer’s lines in the omnibus SIPC claim.

6. In order to most efficiently fulfil these criteria LBIE requires relevant clients to complete:
a) A Client Position Response (‘CPR’), using the template provided (please click here to download). Please note that the CPR must be provided in soft copy to facilitate the electronic upload of data contained therein into our claim workbooks; and
b) A SIPA Customer Authorisation Form (please click here to download).

7. If you have still not provided the information requested, please note that to avoid loss of any claim against LBI in its SIPA liquidation, it is imperative you supply these items as soon as possible.

8. As previously notified the deadline for customer claims was 30 January 2009. We also note that the LBI bar date for claims of any kind is 1 June 2009. This is an absolute bar date by statute in the United States and cannot be extended.

9. If you have not yet provided the information set out in paragraph 6, are a client of LBIE (as opposed to any other Lehman entity) and believe that LBIE held securities, cash or other assets through LBI as sub-custodian on your behalf, please email a completed CPR and Customer Authorisation Form to us as soon as possible at clientpositionresponses@lbia-eu.com.

10. LBIE has at all times and continues to co-operate with the LBI Trustee and his advisors by providing all information and assistance as requested.

11. Before considering individual client positions, the LBI Trustee is in the process of reconciling the LBIE customer omnibus claim. The LBI Trustee will address the treatment of individual customer claims once this reconciliation is complete.

12. Please direct any questions regarding the information contained in this update to clientpositionresponses@lbia-eu.com.