Hilarious as it would be to stick investors with the bill, that's not the kind of hedge fund we're dealing with here.

Re: Level Global Investors, L.T.D.

Dear Investors:

Understandably, many of you have inquired into the legal costs and expenses we are incurring as a result of the U.S. Attorney’s Office investigation into the subpoena. As we have informed you in the past, we are cooperating completely with that investigation and, to that end, we have engaged experienced external legal counsel to oversee our response to, and in cooperation with, the Government’s inquiry.

As many of you know, the Investment Manager and the Level Funds have professional liability insurance which we expect will cover our legal costs and expenses. We have put our underwriters on notice and we are working with them. The Investment Manager will pay, in full, the Policy’s deductible. In the event the Investment Manager incurs other related expenses, it will absorb them in full.

Please let us know if you have any questions and thank you for your continued support.

Sincerely,

Level Global Investors, L.P.