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September 3, 2008

TO OUR VALUED PARTNERS

Dear Partner,

I send this deliberate and forthright message to update and level with you, our partners, about the current situation. Our huge investments in upgrading our accounting system, call centre, and state-of-the-art Online Portal for greater client partner convenience - were designed to achieve more timely responses to our large body of partners, the numbers of which had grown and outstripped the response capabilities of the manual systems we previously had in place. To our regret however, it seems every time we take one step forward, something happens - which has nothing to do with World Wise - but which impacts World Wise in a way that negates our best efforts. No sooner had we put the above service upgrades in place, than news broke about another well-known high-yield investment entity, which was raided and investigated in another territory - causing investors to get jittery - and causing a run on World Wise.

Our new Online Portal which was supposed to have resulted in the fast-tracking of normal partner requests, consequently became clogged and tremendously slowed by the abnormally numerous (though thankfully not total) requests for withdrawals. But the suddenness and scope of this run prompted us to re-focus our time and efforts more on managing the run, than on communicating with you. We had to hurriedly, without notice, evolve a special payout plan and put in place huge administrative resources to deal with this run - while handling it in the best interest of our partners.

In the face of the current run, which has resulted NOT from World Wise's own actions (which have always been above board), but unfortunately from the questionable actions of other investment entities which have no connection to World Wise, we have taken a conscientious decision to execute payouts in two stages. Stage 1 - Principal Balance, and Stage 2 - Profits. This way we make sure that

  1. everybody gets his/her principal back first, while we temporarily retain funds to allow for continued trading - as a way of funding the immense administrative costs of paying out a run.


  2. profits will be paid next - these funds will incidentally continue to accumulate more profits while with us. Let us be honest with ourselves. Which financial institution - even the big banks of the nineties - were able to survive a run without an unusual action plan?
Truth is ... a run (justified or not - in our case unjustified) hurts an institution because it rapidly depletes the institution of it's income-generating tool of trade (cash) - while massively increasing the institution's administrative overheads costs. In the event of a run, enormous admin resources have to be brought to bear, simply to execute the large numbers of payouts that have to be executed within a highly compressed time frame.

Notwithstanding, we understand you must be anxious, and are making every effort to put together a practical payment schedule which will take us to no further than February 2009. With this in mind we will commence the first set of payouts on Friday, September 5, 2008 and will keep you apprised of subsequent payouts as soon as we have put a schedule in place, subject to the completion of the audit process which has been slowed because of the overwhelming number of requests in the Online Portal. As a result, we will be closing the Online Portal effective Friday, September 5, 2008. The Portal will reopen on October 6, 2008 for partners to continue making their requests. Please bear with us while we work in your best interest.

Again, to be forthright, and instead of sweeping it under the carpet, we have to level with you, and bring it to your attention that a certain business man has just sued World Wise - technically for profits. We want all our partners to know that it is a fact that by an unintended process of default, this business man has already received more than his principal. While we do not know if he can win his case, it is important for client partners to be alerted, that such a move is obviously designed to gain one partner an unfair advantage over all other partners. Such a selfish law suit clearly jeopardizes our 2-stage payout plan.

As we are partners together, this being a time of frankness, we would also like you to know that the officers of World Wise are being subjected to various threats. This is truly disheartening, since of all the high-yield entities that came before, we at World Wise are the ones who are actually paying out money. While the authorities compile information on the identities of the perpetrators, we do question the perpetrators' logic as clearly, if any harm should come to any officer of World Wise, it would for obvious reasons have a negative rather than positive effect on the payout process.

In light of all this, we appeal to you our partners, to please think of others, to not follow selfish examples, and please be patient while we execute our well thought out 2-stage payout plan. It is the fairest, most honest and conscientious way to safeguard all partners' investments - and to demonstrate World Wise's integrity - while we continue to pursue FSC approval.

It must be highlighted that In Stage 1 partners who are already at a 0% risk exposure, i.e. their principal amounts have already been collected by them, will not be paid until we are at Stage 2. Please note also that when a partner has taken his full principal back, his or her risk exposure is zero.

As you are aware, WWP has already survived the onslaught of two major runs - again caused by shock-waves from other investment entities UNCONNECTED to World Wise. In this respect, World Wise has weathered the storm even better than those big banks which succumbed to runs during the nineties. A testament to World Wise's good business practices, sound management decisions, and last but not least - World Wise's tested and proven INTEGRITY.

We are PARTNERS. We urge you to please work with us. Let's work in each others best interest - and exercise patience for the good and success of all.

Sincerely,
Noel Strachan