ASIC has announced it will issue a number of proceedings for
the benefit of investors in the Westpoint Group seeking compensation
for their failed investments.

This follows ASIC’€™s announcement that the Commission had resolved to take over
the running of liquidators’€™ proceedings commenced by the liquidator of
Ann Street Mezzanine Pty Ltd and York Street Mezzanine Pty Ltd and to
bring claims on behalf of other mezzanine companies.

The first phase of ASIC’s legal action will seek to recover damages from various directors and officers of
certain companies in the Westpoint Group and entities associated with
one of the directors and from a number of licensees of financial
planning firms that sold Westpoint investments.

It will be alleged that directors and officers are
responsible for the misapplication of funds raised by the mezzanine
companies, and that commission payments received by entities associated
with one director should be returned. At this stage ASIC has identified
potential claims of up to $245 million.

ASIC will also allege that, in selling products with the
risk and financial characteristics of Westpoint, the licensees did not
comply with their obligations under the conditions of their Australian
financial services licences and under the law.

ASIC will be seeking a total of approximately $63.2
million in damages from these licensees, based on the amounts which
their clients invested in Westpoint products and subsequently lost when
Westpoint collapsed.

UPDATE 23 December 2007: ASIC announces phase 2 actions