Stanford International Bank (SIB)

SIB is a private bank, domiciled in Anigua, West Indies, a tax haven. The bank was
established by the well known Stanford family. The Stanford group has interests in
banking, financial services, real estate, etc. The bank is neither rated nor listed.

The Board of Directors include Mr. R Allen Stanford (Chairman), James A Stanford
(Chairman Emeritus), James M Davis (CFO), O.Y. Goswick (Investments), ir Courtney
N Blackman (Intl. Banking) and others. Their Auditors are CAS Hewlett & Co.

The Bank pays an unusually high coupon on its Fixed CDs and Flexi CDs.

Fixed CD Flexi CD
Interest Yield Interest Yield
3 months 4.15 4.24 3.65 3.72
6 months 4.90 5.02 4.40 4.50
12 months 5.90 6.08 5.40 5.55
24 months 6.45 6.88 5.95 6.32
36 months 6.95 7.73 6.45 7.12
48 months 7.05 8.14 6.55 7.49
60 months 7.15 8.59 6.65 7.89

Interest rates paid to depositors are based on prudent investment return

expectations and are reviewed quarterly by the Board. Over the past decade, SIB
has consistently outperformed US Bank CDs by an average of 4.6% p.a.

As at the end of 2003, the portfolio comprised Equity 39%, Bonds 42%, Precious
metals 8% and Cash and Fiduciaries 11%. All listed securities of or guaranteed
by various governments mature on fixed dates up to 30 years. These investments
are generally listed on major international exchanges.

Financials of SIB are as under.

(USD mn.)
Year ending 31 Dec 2002 2003
 Interest Income 39.83 54.63
Non Interest Income 159.69 199.83
199.52 254.46

Interest Paid 109.87 134.02

Services 56.34 75.59
Operating Expenses 9.59 11.73
175.80 221.34

Operating Profit 23.72 33.12

(USD mn.)

Liabilities 2002 2003 1H2004 Assets 2002 2003 1H2004

Customer Deposits 1,606.06 2,083.40 2,411.29 Cash & Equivalents 108.26 107.90 181.68
Accounts Payable 6.99 7.08 6.19 Adv. to Customers 26.45 29.49 32.42

Outside Liabilities 1,613.05 2,090.48 2,417.48 Current Assets 134.71 137.39 214.10

Share Capital 10.00 10.00 10.00 Investments 1,573.29 2,082.49 2,346.86

Share Premium 27.00 28.20 28.20 Fixed Assets 5.76 5.62 7.39
Retained Earnings 63.71 96.83 112.67
100.71 135.03 150.87 1,579.05 2,088.11 2,354.25

Total Liabilities 1,713.76 2,225.51 2,568.35 Total Assets 1,713.76 2,225.50 2,568.35

They have approached you with an expectation of keeping deposits with them.