Text Of Current Message On Conservator's Toll-Free Line: (866) 852-6746
10-10-2007

Hello,

Many investors have called asking when the Conservator will make the next distribution.

As you are aware, the Future First fraud included the false representation to you that the policy(ies) in which you were invested were those of terminally ill people. The 'Ponzi" scheme perpetrated by Future First depended upon the proceeds from death benefits to make premium payments to keep all policies in force.

In time, insufficient funds were realized because the viators were largely not terminally ill. Therefore Future First could not keep up premium payments, and the fraud collapsed. By the time the Conservator was appointed, more than 5% of the policies had lapsed, and he became quickly aware that he would have to borrow money to keep premium payments current and to sell the portfolio of policies.

There was no purchaser who offered a single cash payment for the entire portfolio. As many of you have read on the Conservator's website, the purchase agreement entered into by the Conservator on November 26, 2003 requires that the proceeds of the death benefits from the matured policies be paid as follows: 50% to the purchaser to facilitate premium payments, 49% to the Conservator for future distribution to the investors, and 1% to the company that found the buyer and arranged the purchase of the policies. The Court approved this purchase agreement as the only reasonable offer. The alternative would have been to allow the entire portfolio of policies to lapse.

The purchase agreement states that on the seventh anniversary of the closing date of the sale (November 26, 2010), the buyer will pay to the Conservator the remaining balance of the $34,900,000 purchase price, provided the buyer does not default on its premium payment obligations.

So far during 2007, only 38 of the 2,029 policies active at the beginning of the year have matured. The Conservator deems it imprudent to make a third distribution until a greater number of policies mature and additional funds are received. This is entirely unpredictable. We will certainly advise investors when a third distribution becomes possible.