1 - 04/97 - Sugar Claims ex Santos (Brazil)

We have been made aware of problems arising on shipments of sugar out of Santos, Brazil. We understand there is a shortfall of sugar for this years season out of Brazil, which is coming to an end. The suppliers are reportedly supplying below standard sugar to fulfil contracts and are also providing sugar which has not been correctly processed.

The result of this incorrect processing which does not allow the sugar to cool down before being packed or its moisture content to stabilize, is to cause caking of the sugar in the centre of the bags.

This information has been received from the Newcastle Club, for further details speak to Mr.Mike Todd.

Our correspondents in Santos are aware of the problem.

Karl Lumbers

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Thomas Miller & Co Ltd

Date23/03/2009