TO ALL MEMBERS

Dear Sirs

US TERRORISM RISK INSURANCE ACT

We refer to our previous circular on this subject ([<A HREF="ClubCircular1602">ref.16/02</A>]). We can confirm that a large number of Members have returned the copy of the circular duly confirming that they do not require the cover set out in the latest coverage of acts of terrorism. No Member has paid the required additional premium for this coverage within the 30 days required.

The Directors of the Association will consider at their meeting at the end of January the basis on which special war risks P&I cover can be made available to the Members in accordance with the proviso to Rule 5(E), to include cover arising from acts of terrorism as defined in the United States Act. A notice will be sent to all Members advising of the Directors' decision in the usual way.

In the meantime we confirm that the current special war risks P&I cover on the terms set out in the Directors' resolution of 28th January 2002, remains in full force and effect not withstanding that a Member may not have responded to the notice of coverage of US acts of terrorism and additional premium.

Yours faithfully

Thomas Miller (Bermuda) Ltd.