December 1, 2009

Dear Friends and Colleagues,

The magnitude 8 earthquake that hit southwestern China's Sichuan Province on May 12th, 2008 destroyed thousands of buildings, roads, schools and hospitals and claimed over 50,000 lives. In just 12 seconds, more than 170 towns, including those in the proximity of Chengdu City, were either destroyed or badly damaged. More than 45 million people were affected by the earthquake; the worst natural disaster to hit China in 30 years.

We at ISG Capital Management, Ltd. (“ISG”) were especially saddened by the tragedy due to our longstanding relationship with the disaster area. Many of our staff are either from that region or have close friends and relatives still living there. Some staff members have been working on development projects around Chengdu and elsewhere in Sichuan for years. Our founder, Li Li, began her career as a high school teacher in the 1980s and is from a family of educators whose hometown is Chengdu.

As you know, ISG's current principal business is real estate investment in China supported by our in-house team of highly experienced real estate professionals. Our close ties to the stricken region and our real estate expertise led us to rebuild a school for the students of the town of Dayi, Chujiang School.

We are happy to announce that the reconstruction of Chujiang School has been fully completed!

Chujiang School, which is a nine-year boarding school, is one of the schools that suffered extensive damage from the earthquake. The school, with a total area of 16,750 square meters, can hold 1200 people in 24 classes, but only 3,275 square meters of school construction needed to be rebuilt. The school rebuilding plan incorporated 7,614 square meters of new teaching buildings and dormitories to hold the current students and other students from nearby areas who can not go back to their original schools because they were destroyed in the earthquake.

Since the initial earthquake, ISG has mobilized its team and its established network in the area of the earthquake and all over China to identify this rebuilding project. Through a partnership with The Chengdu Education Foundation, we chose to rebuild Chujiang School in Dayi County. On behalf of the students of Chujiang School, we thank you for your contributions and your dedication to making this project a success.