Other IOF Holders,You are being asked to ratify the issue of the...

Other IOF Holders,

You are being asked to ratify the issue of the share placement of 187,500,000 units to institutions at $0.80.

If ratified this will refresh IOF's ability to issue up to 15% of additional units to institutions without unitholder approval. Whilst IOF is saying that they have no intention to issue additional units management and directors have very little exposure of their own money and of course an issue of further units will be dilutionary for retail holders. Furthermore, as with the last issue it had no benefit to the unit price which susbequently fell over 70% over a couple of months making it one of the worst reit's in the market.

Regardless of whether they will issue additional units if approved the risk may weigh further on the price.

Steer