FAI INSURANCES LIMITED (ASX.FAI)

Antony (Tony) Boulden, a former Financial Controller of the Corporate and Professional Insurance Division of FAI General Insurance Company Limited (FAIG), is today sentenced to imprisonment for a term of 12 months to be served by way of periodic detention - Boulden was sentenced after earlier pleading guilty to one count of being privy to the fraudulent altering of a book affecting or relating to the affairs of FAIG - the charges related to entries recorded in the general ledger of FAIG, which had the effect of reducing claims estimates by approximately $5.5 million

Tony Boulden, a former Financial Controller of FAI General Insurance Company (FAIG), has pleaded guilty to breaching section 590(1) of the Corporations Law - he appeared in the Sydney Supreme Court today before Justice Barr - Justice Barr adjourned the matter for sentencing until 12 October 2006 for a two-day hearing

criminal charges are laid against Messrs Daniel Wilkie, Ashraf Kamha and Antony Boulden, former officers of FAI General Insurance Company Limited - the charges arise from the investigation by ASIC into the affairs of the HIH group of companies

Timothy Maxwell Mainprize and Daniel Wilkie are acquitted on two counts of failing to act honestly in the exercise of their powers and discharge of their duties as officers of FAI General and one count of providing false and misleading information - Stephen Burroughs has been acquitted on one count of failing to act honestly in the exercise of his powers and discharge of his duties as an officer of FAI General

we understand the trial of Timothy Maxwell Mainprize, Daniel Wilkie and Stephen Burroughs is currently scheduled to commence on 5 September 2005

Timothy Maxwell Mainprize, Daniel Wilkie and Stephen Burroughs were today committed to stand trial in the Supreme Court of New South Wales on charges laid by the Australian Securities and Investments Commission (ASIC) - Messrs Mainprize and Wilkie will each stand trial on two counts of failing to act honestly in the exercise of their powers and discharge of their duties as officers of FAI General Insurance Company Limited (FAI General) and one count of providing false and misleading information - Mr Burroughs will stand trial on one count of failing to act honestly in the exercise of his powers and discharge of his duties as an officer of FAI General

General Re Australia Ltd pays $27.2 million to the liquidator of FAI General Insurance Company Limited as part of an enforceable undertaking provided to ASIC

criminal charges laid against Timothy Maxwell Mainprize, Daniel Wilkie and Stephen Burroughs. The charges are connected with reinsurance arrangements entered into by FAI General Insurance Company Limited with General Cologne Re Australia Limited in 1998. It is alleged that the true substance of those arrangements was concealed from FAI's auditors.

delisted pursuant to Listing Rule 17.14 following the successful takeover offer by HIH Investment Holdings Limited

we understand HIH was successful with an offer for FAI of either one HIH share for three FAI shares, or one HIH share plus $2.25 cash for six FAI shares

some shareholders have asked about the cost they were deemed to have paid for shares in HIH when they opted to accept the full scrip offer by HIH for their shares in FAI Insurances Limited - we understand shareholder acceptances became legally binding contracts on 17 December 1998 and the closing price on that day was $2.18 per share - it may however be the case, that if the shareholder submitted their acceptance at a later date, the market value of an HIH share on that day should apply - shareholders should seek their own independent advice on this issue

name changed from Australian and International Insurance Limited