October 8, 2004

Dear Sir,

Re: story headlined "LOM accused of fraud" that was published in the October 8, 2004 edition of

I would like to comment on the part of the above article that stated: "The spokesman said that a few months ago Mr. Marchant reported on another similar legal action in Alabama in which LOM was also named and had a default judgment entered against it without LOM's knowledge. The LOM spokesman said yesterday: "LOM's motion to have that judgment set aside was subsequently granted by the court and we expect the case to be dismissed within two weeks. We note that while Mr. Marchant reported the initial story with great relish (as with the more recent one) he has not reported the fact that LOM was successful in having the judgment set aside."

The implication by the unidentified spokesman for Lines Overseas Management that OffshoreAlert newsletter is in some way biased against LOM is without foundation and unsupported by any evidence.

On July 10, 2004, OffshoreAlert reported that a default judgment had been entered against LOM at the US District Court for the Southern District of Alabama ? which is a matter of fact.

OffshoreAlert then began its own investigation of the circumstances surrounding the default judgment and found that the complaint upon which the judgment was based had never been properly served on LOM. Our findings were published on July 17, 2004 in an article headlined "Judgment against LOM and RBC appears defective". I cannot imagine anyone of reasonable intelligence and impartiality reading this article and interpreting it as anything but favourable to LOM.

Immediately after reading the article on October 8, I viewed the latest docket sheet for the Alabama case and found that the court granted LOM's motion to vacate the default judgment on October 4, 2004 ? just four days ago as I write this. Given the delay between orders being entered and showing up in the public domain, it is probable that this docket entry was only made publicly available online yesterday or today and, given that LOM never contacted me to notify me of this development, I cannot report that of which I have no knowledge. Now that I am aware that LOM's motion to vacate the judgment has just been granted, I will be reporting about it in the next edition of OffshoreAlert.

Finally, as is the case with any serious news publication, OffshoreAlert strives to be fair and accurate when reporting about individuals and entities who are subject to our investigations. It is not OffshoreAlert's fault that LOM is facing regulatory action in Bermuda, Canada, and the United States and is involved in other litigation alleging securities fraud.

I am comfortable that we have reported about these matters fairly, thoroughly and without emotion.

Wake up, Bermuda

October 8, 2004

Dear Sir,

I hope all of Bermuda was watching the Presidential debate held this evening.

It seems that John Kerry has a personal vendetta against the Island pertaining to supposed tax evasions offered to the exempted companies that are the very foundation of our Island.

If any of you were watching he (John Kerry) made the very statement that one of the very first things he will carry through is to bring the US tax dollars back to our country, from such places as Bermuda.

I know that one of his colleagues, the so-called Rev. Al Sharpton came to Bermuda to visit, but it was to gather information for the Kerry campaign, pertaining to the lifestyles of the people on the Island and the impact that the exempt companies make pertaining to our economy.

When Jean Shaheen, a Democrat that resides here in New Hampshire was running for Governor four years ago, she too had her platform on removing all exempted companies from Bermuda. She did not get into office, but is now working with the Kerry campaign to destroy a country that has worked long and hard to obtain their economic growth.

John Kerry has not reminded the voters that he is married to a woman who is worth $558 billion, (Theresa Heinz Kerry) and that she has factories (ie Heinz ketchup, pickles, etc.) in many foreign countries, and these are poverty countries, and they are paid a pittance for wages. She gets a huge exemption for having these factories overseas, but with John Kerry, what's sauce for the goose, is not sauce for the gander.

I hope that all of you Americans on the Island will register to vote and then see that you do, or you may not be living as well as you have been accustomed.

Bermuda, your Government needs to wake up and smell the coffee, In his debate speech I never heard John Kerry mention Cayman, Bahamas or any other islands that also have many American based exempted companies.