ubs, page-15

Rormon,

I've just had a long chat with AFG's CFO (Tim Dodd), and he assures me that all of AFG's infrastructure assets on order (planes, ships etc) are already fully financed with a mix of AFG cash, script and long term debt. He said that AFG has NO exposure to the short term capital markets that are causing headaches for Centro.

He said the debt funding for infrastructure assets is typically 10-12 years, which is also the terms of the lease for the assets.

He said that looking ahead 12 months AFG has no need to go back to the debt or capital markets to fund its planned business activities. So, provided that the inter-bank credit crisis does not last more than another 12 months (highly unlikely), AFG's business activities (and its earnings) will not be impacted.

He said AFG would only consider going back to the capital/debt markets over the next 12 months if a really compelling business proposition presented itself.

But, to repeat my main point, all of AFG's ships, planes, trains etc that are presented on order are already fully funded on attractive terms for AFG.

There is much misinformation around on AFG at present (including by some analysts), so punters should be cautious of rampers (up or down).