27 November 2008

Update on Structured Notes issued by Lehman Brothers Holdings Inc. (LBHI)

We would like to update you with the following additional information which may be useful in helping you decide on the best course of action for your investment.

Keeping or selling your notes

1. Keeping your notes

By holding on to your notes, you will keep all your rights in respect of them. This will include your right to repayment, although you may know that there is a risk that the notes may not be repaid in full or that you may not receive any repayment at all. Given the complex nature of the bankruptcy of the Issuer based on information we have received from Lehman related parties, we do not expect any claims filing deadline to be set before early 2009. Accordingly, no action needs to be taken by you at this stage in this regard.

Therefore, you will need to await resolution of LBHI's bankruptcy case before you will know the proposed repayment plan for your notes.

LBHI's Chapter 11 case is pending before the United States Bankruptcy Court in the Southern District of New York. Further information about Lehman Brothers Holdings Inc. and the Chapter 11 proceedings can be found at the following website: http://chapter11.epiqsystems.com/lehman.

2. Selling your notes

If you wish to sell your notes, it may be possible to do so in the secondary market. By selling the notes through the secondary market, you may possibly make a partial recovery before any dividends will be paid by the Liquidator. However, you should note that the value of the notes is extremely uncertain and may vary significantly from any indicative bid you may have received in the past. By selling the notes, you will also dispose of your right to claim any payment under the notes from the Liquidator or Issuer. We recommend you to speak to your financial advisers if you wish to explore this option more fully.

If you are interested in getting an indicative secondary market quote, please contact your Relationship Manager on or before 28 November 2008 for more information.

Further information

We will continue to keep you updated as and when we have more information that may be helpful to you. In the meantime, we recommend that you monitor developments by regularly checking the websites referred to above.

Please note that you should not make decisions regarding your investment based on the information in this letter. The courses of action described here are not intended to be exhaustive, and we recommend that you obtain independent professional advice regarding your rights under the notes, and the investment solutions available to you.

Should you have any general queries regarding a bond you purchased from us, please contact your Relationship Manager.