On April 21, 2010, U.S. Central (USC) released its audited financial results for 2009 as well as a restatement of the company’s unaudited fourth quarter 2009 results issued on March 1, 2010. Highlights include:

• An increase in Other Than Temporary Impairment (OTTI) for the fourth quarter of 2009 of $274 million
• Net loss for the year ended December 31, 2009 - $2.04 billion

On March 25, 2010, Ambac Assurance Corporation (Ambac) issued a press release announcing actions it had taken at the direction of its regulator, the Office of the Commissioner of Insurance of the State of Wisconsin, to address Ambac’s weakened financial position. Based on this new information, USC has revised its reliance on Ambac for claims payments downward, to 25 percent from 80 percent, after an expected six-month interruption of payments. The increased OTTI for the fourth quarter is the result of this change.

This announcement:

• Has no affect on Members United as the corporate had already written off 100% of its capital investment in October 2009
• Will not cause any additional losses to Members United’s capital shareholders
• Has no affect on continuing operations or product support at either USC or Members United

As previously announced, with the organizational announcement by Ambac on March 25, 2010, Members United is required to revisit its OTTI estimates on the bonds insured by Ambac. This will delay the release of the audited financial statements.

For a copy of U.S. Central’s audited financial report for 2009, click here or visit U.S. Central’s website at http://www.uscentral.org.