GalleonFX - 9/8/06 C450 Changes. Transitioning to C150 Systems

C450 has had a slight come back in August up .58%. The problem is that the combined results over the last 5 monthshave been somewhat disappointing with C450 being down almost 5% at the lose of August and then more recently down a bit more more in the firstweek of September.
As a result of several emails and phone calls from concerned clients as ell as well as analyzing sluggish results on our side, we've decided thebest way to proceed from here is to transition client accounts being raded with C450 strategies to C150 strategies but at half the leverage of our current C150 Euro accounts. C150 is a much simpler ystem that has continued to perform fairly well over a longer period oftime. This transition from C450 to C150 will take place without the eed for any client action and should be completed by Monday the Sept 11th.

Though early on, all indication were pointing to C450 being the uccessor to C150 with it's broader diversity, it's actual sluggish performancehas caused many of us to see value in the simplicity of the C150 system ith just 2 currency pairs that oppose each other in relation to the USD.

In addition, there are some more points worth noting on C150 as we

transition C450 client accounts over to C150

* C150's recent draw down is unlikely to be repeated. So this is likely an excellent time to transition to C150

* C150 has had only 2 down months in the last 9

* Though C150 recently experienced a draw down of 14.9% in August, it is still up over 77% in the last 9 months

* August also seems to be a historically unusual month for trading; with many money managers on vacation an hence not as much currency is being traded nor trends continuing as a result. August saw many choppy 200 pip range swings that would unfortunately stop us out just before a reversal. The point here is that August was a uniquely choppy month that C150 should recover quickly from
as soon as some new trends emerge. We have full confideince that C150 will recover in a reasonable time again like it always has after a draw down.

As we transistion form C450 to C150 some of you may be asking...

What about the Long and Short accounts? Will these still be needed?

Not really, but in the future we may designate one account to be traded at a higher leverage for more aggressive investors so current clients should hold on to both of them for now. When this happens you will have the choice to move funds between either account depending on your investment goals.

If you have additional questions please contact us.