Primus Financial Products, LLC

Primus Financial, our principal subsidiary, has the highest counterparty credit ratings offered by S&P (AAA), and Moody's (Aaa) and is managed by an experienced team of professionals who have expertise in credit analysis, trading, risk management and market analysis.

Primus Financial's principal business is selling credit swaps under which we assume the risk of default generally on investment grade credit obligations. The protection we sell takes the form of a credit swap. Credit swaps are an efficient and standardized mechanism to reduce credit risk exposure arising from the ownership of financial obligations such as bonds, loans and receivables. The primary purchasers of credit swaps are commercial and investment banks as well as credit portfolio managers, insurance companies and other financial institutions.

Primus Financial Products' services offer counterparties the following:

• The highest quality, AAA/Aaa counterparty
• A breadth of capacity across the investment grade and BB/Ba universe
• Single name protection that is flexible with respect to tenors and notional amounts
• Transactions that use market standard ISDA documentation
• High levels of capital and portfolio diversification sufficient to maintain its ratings
• Straight through process technology to control its business and provide efficient, reliable trade administration
• Portfolio transparency to designated counterparty credit managers
• An experienced management team

Primus Financial is successfully implementing its business plan and is widely accepted as a professional counterparty. The company manages a broadly diversified portfolio.

Primus Financial's credit standing is based on its own capital and asset diversification, and obligations of Primus Financial do not represent obligations of Primus Guaranty, Ltd. or any other Primus Financial affiliate.

Primus Financial is uniquely positioned in the market as a credit derivative operating company. As a principal in its transactions and an end risk taker, Primus Financial's investment decisions are based on the risk adjusted returns at the time of the transaction. Primus Financial's objective is to manage a broadly diversified portfolio with exposure across a wide spectrum of investment-grade Reference Entities.