Dear Shareholders, In light of the recent two months poor performance of our portfolio, we have decided to provide a mid-month performance update as per the 15th of October 2007. Our portfolio is slightly positive with 0.29 %. 13 managers had reported a plus and 3 reported a minus so far. We are at your disposal for further information. Yours sincerely, Casper Hallas CEO & Portfolio Chief SCANDIUM ASSET MANAGEMENT Toldbodgade 51C, 1st. Fl. 1253 Copenhagen K Dir: +45 35 55 55 01 Mobile: +45 22 26 11 21 Fax: +45 35 55 55 05