TLI Alt. AO. Prfnpv

    Alternative Asset Opportunities PCC Limited

16 June 2008

Trading update

As part of a recent scheduled review by Surrenda-link Limited, the Company's
investment manager, an error was identified in the actuarial model used to
produce the illustrative return projections for the Company. The error was a
database referencing error and caused predicted future mortalities in the model
to be overstated. This error was confined to an isolated module used only in
the production of the illustrated return projections and has no effect on the
stated net asset value of the Company.

The revised table of illustrative annualised returns over the remaining life of
the Company, with reference to the 31 March 2008 NAV of 112.2 pence, is as
follows:

  Mortality   Proportion    Exit                                             
 Assumption    Surviving   Price                                             
                                                                             
   Note 1       Note 2     Note 3   -10c    -5c       0c      +5c      +10c  
                                                                             
 - 18 months     48.2%     46.38c   8.8%   10.4%    11.9%    13.3%    14.7%  
                                                                             
 - 6 months      52.1%     46.65c   6.5%    8.3%    10.0%    11.6%    13.2%  
                                                                             
      0          55.0%     46.84c   4.7%    6.7%     8.6%    10.3%    12.0%  
                                                                             
 + 6 months      58.2%     47.04c   2.6%    4.9%     7.0%     8.9%    10.8%  
                                                                             
 + 18 months     63.7%     47.37c  -1.3%    1.5%     4.0%     6.3%     8.5%  

Notes

1. The central case assumes that claims experience precisely matches the
valuation basis. The changes as shown illustrate the effect of actual life
expectancies varying from the medically assessed life expectancies by the
stated number of months.

2. This shows the percentage of policy lives insured assumed to survive
throughout the life of the Company.

3. This shows the assumed average realisation values per US$1 of TLI policy
face value in respect of the policies of the surviving lives insured at the end
of life of the Company, by reference to the different mortality assumptions as
stated. The central case corresponds to the valuation assumptions used in
arriving at the end-March NAV.

As previously announced, Surrenda-link is separately conducting a review of
life expectancy assessments on behalf of the Company and, given the low rate of
portfolio maturities compared to expectations, the Board will be considering
whether this has implications for its current valuation methodology.

Enquiries:

Roger Sendall Tel: 01481 752 409

Kleinwort Benson (Channel Islands) Fund Services Limited



END

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