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Dear Fairfield Sentry Investor

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How are you, loves? All splendid on this end, except...oh, it's so minor it's barely even worth mentioning...and you know, to be plainly honest, we wouldn't, were it not for the press, the bloody, meddlesome press, sticking their chippie asses where they know full well they don't belong. Right then, what were we saying? Oh, right, while we have you...

Romasco Place, Wickhams Cay 1
Road Town, Tortola
British Virgin Islands, VG 1110
December 22, 2008
Dear Shareholder,
Suspension of the Calculation of Net Asset Value
Reference is made to the extraordinary events of last week regarding Bernard L. Madoff
Investments Securities LLC ("Madoff"). As you are most likely aware, on December 11,
2008 Bernard Madoff was arrested and charged with securities fraud for operating in
essence a giant Ponzi scheme. It has been alleged that Madoff's fraud involved a loss in
both cash and securities of possibly US$50 billion.
As you will have read in the press, Fairfield Sentry Limited (the "Company") was significantly exposed to Madoff. At this point in time the value of the Company's
investment in Madoff is not certain. There may be residual assets in Madoff to be
distributed or, alternatively, there may be no assets.
With the view to acting in the best interests of the Company and all of its shareholders
and creditors, the Board of Directors of the Company (the "Board") has suspended the
calculation of net asset value with a corresponding suspension of redemptions and
subscriptions pursuant to Article 11(4) of the Articles of the Association of the Company,
due to the fact that the Board determined (i) that circumstances exist as a result of which
in their opinion it is not reasonably practicable for the Company to dispose of
investments or that any such disposal would be materially prejudicial to shareholders, (ii)
that a breakdown has occurred in the means normally employed in ascertaining the value
of investments of the Company, (iii) that the value of the investments of the Company
cannot reasonably or fairly be ascertained and (iv) that the Company is unable to
repatriate funds required for the purpose of making payments due on redemption of
shares. As such, pursuant to the powers contained in the Articles of Association of the
Company, the Board has suspended the determination of the net asset value. As a result
of such suspension, all subscriptions into and redemptions from the Company have been
suspended. With respect to redemption requests received for the November 30, 2008
dealing date, the payment of these proceeds of redemption have been similarly suspended pursuant to the powers contained in the Articles of Association of the Company.
The Company has retained counsel in the British Virgin Islands and the United States to
represent its interests. These counsel will advise as to what action should be taken to
ensure the Company's interests in the remaining assets of Madoff are represented, to
ensure an orderly running of the affairs of the Company and to ensure that all
shareholders and creditors are treated equitably and fairly. In this regard and as advised
by counsel, we are not able to respond to requests for information by individual
shareholders at this time. Rather, information will be provided to all shareholders to
ensure that no one shareholder is at an advantage. We note that the manager to the
Company, Fairfield Greenwich (Bermuda) Limited, has waived all fees until further
notice. We will endeavour to keep you advised of developments with respect to the
Yours faithfully,
The Board of Directors