Company Profile

Elite Insurance Company ("Elite")

On 21 November 2005, LitComp completed the acquisition of Fairmont, which owns the entire issued share capital of Elite. Elite had at the same time received approval from the regulator to underwrite After the Event Insurance (AEI) from its location in Gibraltar.

Elite Business Development Ltd (trading as Elite Litigation Services) received written confirmation of FSA authorisation of its entitlement to act as an intermediary and market specialist insurance products in the UK, including AEI to potential clients on 27 March 2006. Elite Business Development Ltd (trading as Elite Litigation Services) received written confirmation of FSA authorisation of its entitlement to act as an insurance intermediary on 27 March 2006.

The principal objective of Elite is the provision of AEI. Gibraltar has been chosen as the location for the Company's underwriting operations because LitComp considers this location to be adequately regulated, offering a similar standard of regulation to that of the UK. This location allows Elite to underwrite AEI products anywhere within the EU and also offers a comparatively low operational cost base.

Historic claims ratios for AEI are comparatively low; partly because success fee based cases tend to be carefully vetted by litigation lawyers. Elite expects to maintain this low claims ratio by individually vetting all cases to which it offers AEI itself.

Elite has also received approval from the regulator to underwrite legal and other financial insurances from its location in Gibraltar. Although the main activities will be within the AEI sector, Elite may underwrite other insurance specialist products in the future.

Elite Litigation Services intends to market AEI products partly through the existing client base of Perfect Consulting Ltd and Cox Associates Ltd. Elite Litigation Funding Ltd also intends to introduce litigation funding to selected clients from the existing client base of Perfect Consulting and Cox Associates.

http://www.elite-insurance.co.uk

Medico-Legal and Psychological Companies

Perfect Consulting Ltd, Legal Reports & Services Ltd and Cox Associates Ltd ("the Medico-Legal and Psychological Companies") are engaged in the provision of medico-legal and psychological reports, principally to solicitors. This market has increased because more firms specialising in personal injury litigation are accepting instructions under a conditional fee agreement and these firms benefit from deferred payment terms offered to them by companies such as the Medico-Legal and Psychological Companies.

The Medico-Legal and Psychological Companies are contacted directly by solicitors or insurance companies to source an expert's report for a claimant. The Medico-Legal and Psychological Companies can call on a panel of vetted experts comprising approximately 2,000 professionals spread throughout the UK. Once an acceptable expert is identified, the solicitor or insurance company issues instructions to the relevant Medico-Legal and Psychological Companies, which similarly instruct the nominated expert.

The medical reports are purchased by the Medico-Legal and Psychological Companies and subsequently sold to solicitors and insurance companies for an amount, dependent upon the writer's expertise together with commission if a referral from a claims management company has been made.

Cox Associates engages purely in the provision of psychological reports in personal injury, family and criminal cases; its clients are mainly solicitors and local authorities. Cox Associates makes use of a panel of around 60 experts located throughout the United Kingdom who provide reports in care proceedings, criminal proceedings, personal injury and other areas of psychology for Cox Associates, which subsequently provides these reports to solicitors and other clients.

Currently, the Medico-Legal and Psychological Companies have over 400 clients in aggregate.