H.Thomas Moran II, Receiver

Receiver of Lifetime Capital, Inc.

April 14 2006


Investors: The Court held two hearings on Thursday, April 13.

The first hearing was a fairness hearing regarding the proposed settlement of the Jordan issue. This involves the two matured Prudential policies. As a result of mediation it was proposed that the Receiver would pay the Jordan investors an amount equal to 62.5% of their investment related to the Jordan policies. In return, the Jordan investors would give a full and final release to the Receiver as concerns any claims related to their investment. The release does not cover your claims unrelated to Jordan nor does it include claims relative to payment of premiums.

The Court found the proposal fair and equitable. It was approved.

Distribution should begin within sixty days after funding of the sale of the balance of the portfolio provided claim forms have been submitted and approved. Unsubmitted claims will not hold up distribution to those that have completed the process.

The second hearing was a consideration of the highest and best bid for the balance of the portfolio.

At the hearing two bidders were present. SPCG (Silverpoint) has submitted a bid of $19,375,000.00 for the policies. This is a one time payment.

The Lorenzo Tonti fund submitted a phased bid. It consists of $12,000,000.00 upfront, 100% of all net cash flow exceeding $2,000,000.00 generated by maturities for the next seven years and a payment of $6,500,000.00 at the end of seven years.

Both bids are attractive. One is certain and give finality. The other is certain for $18,500,000.00 and provides an opportunity to share in maturities. The downside is that it lasts for seven years.

There was much evidence taken and the Court will probably decide next week. A fairness hearing on that decision is set for May 9 at 9:30 a.m.

If you have questions or thoughts let me know.

Andrew Storar, Examiner