AUSTIN CAPITAL MANAGEMENT LTD.

Summary of Case: A securities class action has been filed against Austin Capital Management Ltd. ("Austin Capital") on behalf of investors in Austin Capital Hedge Funds from January 2, 2005 through December 11, 2008 ("Class Period").  Also Included in this class action are a sub-class of Class Members, which includes all employee benefit plans, through their named fiduciaries, which named Austin Capital as an investment manager and/or allowed Austin Capital to manage some or all of their plan assets, and whose assets were invested in whole or in part by Austin Capital in any Madoff-related investment during the Class Period.

The complaint alleges that Austin Capital placed significant amounts of investor money into funds managed by Bernard L. Madoff ("Madoff") and his firm. Madoff has now been charged with running what may be the largest Ponzi scheme ever. Unbeknownst to investors in its funds, Austin Capital had invested approximately 7.5% of its funds in Madoff-managed investments. This was contrary to the duties Austin Capital had to its investors of good faith and fair dealing and contrary to the representations Austin Capital had made regarding its processes for selecting fund managers. As a result of defendants' breaches and false statements, Austin Capital investors made additional investments in Austin Capital and/or held interests they would have redeemed.

This action charges Austin Capital, its investment managers and its outside auditors with violations of the federal securities laws and ERISA, breach of contract, breach of fiduciary duty, unjust enrichment and negligence.