BANK INSTRUMENTS AVAILABLE FOR SALE / LEASE

THIS IS TO INFORM ALL OUR POTENTIAL CLIENTS AROUND THE WORLD THAT ARGO INTERNATIONAL INC. HAS BEEN ABLE TO SOURCE CERTAIN BANK GUARANTEES / STANDBY LETTERS OF CREDIT WORTH SEVERAL MILLIONS DOLLARS. SUCH BANK INSTRUMENTS CAN BE USED FOR COLLATERALIZATION FOR THE PURPOSES OF LONG TERM / SHORT TERM LOANS AND WORKING CAPITAL REQUIREMENTS. SIMILARLY, ARGO INTERNATIONAL INC. CAN ALSO USE THESE INSTRUMENTS FOR SECURING FINANCIAL LEASE FACILITIES FOR PURCHASE OF HIGH VALUE ASSETS SUCH AS SHIPPING VESSELS, HEAVY PLANT AND MACHINERY, POWER PLANTS, AIRCRAFT, CEMENT BAGGING UNITS ETC.

Financial Instruments

While ARGO INTERNATIONAL INC. makes use of certain types of financial instruments, such as "letters of credit", during the course of it's normal business and may sometimes seek to purchase "investment grade" financial instruments as part of a corporate financing effort, ARGO does not sell, or offer to sell, financial instruments of any kind. We urge parties seeking to acquire any form of bank debenture, certificate of deposit, letter of credit, bond, or securities from other than the issuing institution or a licensed securities dealer to proceed with caution.

We have come across a number of fraudulent proposals in which bank instruments offered for sale do not exist, are counterfeit, or are being offered for sale by other than the legal owner (Andice reports all such incidents to the FBI or US Secret Service). Be sure to carefully inspect any instrument that you may be considering purchasing before making payments, and avoid participating in any so-called "funds-first" transactions in which any commodity, be it a bank instrument or a container full of scrap metal, is to be purchased "sight unseen". Be careful to validate the current status and ownership registration of any financial instrument that you may be considering purchasing before providing the "seller" with any banking information. The simple presentation by a "seller" of a valid ISIN or CUSIP number does not indicate the current status or ownership of the instrument that may be offered for sale. Also be wary of "bait and switch" scenarios in which you may be presented with the registration information for one instrument only to have a different instrument delivered after payment has been made.

We also counsel purchasers to avoid becoming involved in any transaction that in any way involves highly-dubious instruments such as historical bonds (especially railroad or mining bonds), "US Dollar Bonds" (sometimes purported to be issued or backed by the nonexistent "US Ministry of Finance" and/or the "Washington Bank of America"), "Morganthau Bonds", "Philippine Victory Notes", "Limited Edition" US Treasury Notes, or other suspect securities. Large private FOREX ("foreign exchange") transactions involving the trading of different currencies are also to be approached with caution and skepticism.

Also, be careful when approaching transactions involving a "Bank Guarantee" ("BG"). While Bank Guarantees are routinely issued by major European banks, and are used as a form of surety or performance bond (UBS, for example, defines a Bank Guarantee as "a one-way contract between a bank as the guarantor and a beneficiary as the party to whom the guarantee is made"), and while the proceeds of a Bank Guarantee (but not the drawing rights) can usually be assigned to a third party, there is no exchange or secondary market on which such instruments are traded. Further, US banking legislation prohibits US banks from issuing "Bank Guarantees" and thus any "Bank Guarantee" issued by a US bank should be treated with strong skepticism.

We have also encountered a number of potentially fraudulent offers involving "Medium Term Notes" or "MTNs". Medium Term Notes are valid debentures, usually issued for a term of 5 to 10 years. They are offered primarily as fixed income instruments and usually carry a coupon, or interest rate, that is somewhat higher than found on shorter term notes. The use of Medium Term Notes can be a useful corporate financing tool, enabling a company to constantly tailor its debt issuance to meet its financing needs. They can also be an attractive investment for fixed-income investors. Be wary, however, when contemplating the purchase of Medium Term Notes from unknown sources. It is becoming increasingly common for "sellers" to offer a portfolio or package of Medium Term Notes on a "funds first" basis (that is, payment is expected before the instruments can be inspected). We caution any potential purchaser of Medium Term Notes to proceed with the utmost caution in such circumstances. It is our stated policy, and strong advice, to never make payment for any commodity, especially financial instruments, prior to inspection.


FOR FURTHER DETAILS, PLEASE CALL ROBERT VEKICH ON USA CELL NO: +1 612 877 2016 OR SEND EMAIL TO : argointernationalusa@googlemail.com