Lehman & AIG exposure

Boussard & Gavaudan Holding Limited
a closed-ended investment company incorporated with limited liability
      under the laws of Guernsey with registration number 45582


                        Lehman & AIG exposure

16 September 2008


Dear Shareholder,

Approximately 99% of BGHL's investments are in Sark Fund Ltd.

Sark Master Fund Ltd is not using Lehman Brothers as a prime broker.

From the trades we did at the end of last week, Sark has a settlement
risk which notional is equivalent to 0.37% of its AUM that should be
cleared by Wednesday. Lehman Brothers has indicated that they intend
to settle all the trades executed last week. In case they do not
settle, we would be exposed to a fraction of this amount since it is
mostly "delivery versus payment" risk.

Additionally, Sark has an exposure left to Lehman Brothers
International Europe due to its OTC Equity Derivatives positions
traded under ISDA. This exposure is 0.40% of the AUM of the fund. We
intend to serve notice on LBIE in order to accelerate the trades.
Most likely, this claim will join the pool of LBIE unsecured senior
creditors.

Finally, Sark owns a loan in sub participation through Lehman
Commercial Paper Inc. The asset value of this loan is 0.7% of Sark's
AUM and could potentially constitute an exposure to LCPI. We are
exploring with Lehman the possibility of becoming lender of record on
this loan as soon as they can resume trading.
We are confident that after Wednesday's settlement - and if all
settles properly - our exposure to Lehman will not exceed 1.1% of
Sark's AUM.

Sark Master Fund Ltd has no exposure to AIG.

Best regards,

Emmanuel Gavaudan & Emmanuel Boussard.


B&G Asset Management                       [phone]
Emmanuel Gavaudan


The Company is established as a closed-ended investment company
domiciled in Guernsey. The Company has received the necessary
approval of the Guernsey Financial Services Commission and the States
of Guernsey Policy Council. The Company is registered with the Dutch
Authority for the Financial Markets as a collective investment scheme
pursuant to article 2:73 in conjunction with 2:66 of the Dutch
Financial Supervision Act (Wet op het financieel toezicht).

This announcement is for information purposes only and is not an
offer to invest. All investments are subject to risk. Past
performance is no guarantee of future returns. Prospective investors
are advised to seek expert legal, financial, tax and other
professional advice before making any investment decision. The value
of investments may fluctuate. Results achieved in the past are no
guarantee of future results.

This announcement does not constitute a prospectus. The envisaged
application for listing of the Sterling Shares will be made solely on
the basis of information that will be contained in the prospectus to
be made generally available in The Netherlands in connection with
such listing. When made generally available, copies of the prospectus
may be obtained at no cost through the website of the Company
www.bgholdingltd.com.

This is not an offer to sell or a solicitation of any offer to buy
any securities in the United States or in any other jurisdiction.
This announcement is not intended to and does not constitute, or form
part of, any offer or invitation to purchase any securities or the
solicitation of any vote or approval in any jurisdiction, nor shall
there be any sale, issuance or transfer of the securities referred to
in this announcement in any jurisdiction in contravention of
applicable law.

Neither the Company nor the Sark Fund have been, and neither will be,
registered under the US Investment Company Act of 1940, as amended
(the "Investment Company Act").  In addition the securities
referenced in this announcement have not been and will not be
registered under the US Securities Act of 1933, as amended (the
"Securities Act"). Consequently any such securities may not be
offered, sold or otherwise transferred within the United States or
to, or for the account or benefit of, US persons except in accordance
with the Securities Act or an exemption therefrom and under
circumstances which ill not require the issuer of such securities to
register under the Investment Company Act. No public offering of any
securities will be made in the United States.

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