INVESTMENT IN AND ADVANCES TO SUBSIDIARIES

Represents the cost of coquiation arxi advances to First Equity Corporation of Florida,
International Corporate Sandnes SA, Generals Internallona Assurance incorporated,
InSetCon Lid,, Global Ivastzant And SA, FEC Holdings inw, and Swiss Alanda ina.
PREPAID EXPENSES AND OTHER ASSETS

Consists of Organization and pro-operating mythses and capitalized low-ra. Saenola 1.
CUSTOMER TERM DEPOSIT

In the formal course of business the Blank receives funds from subicerowa to be used in
specialized financing trarasections with certain correspondent banka. Such funds are
placed with the Blank for the purchase and sale of francial instuments as a profit which is
rekurned to the owner of the Bands. The Bark charges an kevestment transaction five for
this service based upon this amtalent or profit earned on the transaction.

At December 31, 1988 the Burak held 538,400,000 at such funds and had warned an
irvesineva transaction fam of S16,330,000 som the management of those funds and
execution of such transactions during the year.

BRITISH TRADE AND COMMERCE BANK LIMITED

FINANCIAL STATEMENTS

FOR THE FIFTEEN MONTHS ENDED DECEMBER 31, 1998

MOREAU, WINSTON & CO

CONTENTS

BRITISH TRADE AND COMMERCE BANK LIMITED

INDEX TO THE FINANCIAL STATEMENTS

FOR THE FIFTEEN MONTHS ENDED DECEMBER 31, 1998

Auditors' report

Balance sheet

Income statement

Statement of cash flows

PAGE

1

2

3

Notes to the financial statements

5-9

MOREAU, WINSTON & CO.

CHARTERED CERTIFIED ACCOUNTANTS

P.O. Box 326/411 13 Hanover Street Roseau • Commonwealth of Dominica
Tel. (767) 448-2252/8800 Fax. (767) 448-0489

AUDITORS' REPORT

The Directors

British Trade and Commerce Bank Limited
ROSRAU

These

We have examined the balance sheet of BRITISH TRADE AND COMMERCE BANK LIMITED as at December 31, 1998 and the statements of earnings and changes in financial position for the fifteen months then ended. financial statements are the responsibility of management of British Trade and Commerce Bank Limited; our responsibility is to express an opinion on the financial statements based on our audit.

We conducted our audit of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, evaluating the overall financial statements presentation.

and

In our opinion, these financial statements present fairly, in all material respects, the financial position of the Bank as at December 31, 1998 and the results of its operations and changes in its financial position for the fifteen months then ended in accordance with generally accepted accounting principles.

The accompanying notes form an integral part of these financial statements.

FINANCIAL CONTROLLER

APPROVED BY

DIRECTOR