NOTICE IS HEREBY GIVEN THAT by the State Board of Administration of Florida (“the Board”) of its estimate of the borrowing capacity of the Florida Hurricane Catastrophe Fund (“the Fund”) and the projected balance of the fund as of December 31, 2008, in compliance with the requirements of Section 215.555(4)(c)2., Florida Statutes. The projected year-end balance on December 31, 2008, is estimated to be $2.786 billion, which represents the amount of assets available to pay claims, not including any bonding proceeds, resulting from Covered Events which may occur during the June 1, 2008 through May 30, 2009 Contract Year. Given the current state of the financial markets, the Fund’s estimated borrowing capacity is estimated to range between $1.5 billion and $3.0 billion. The estimated borrowing capacity and estimated available year-end cash balance, together with other liquidity resources, provides the Fund with a total estimated loss reimbursement capacity of between $11.786 billion and $13.286 billion over the next six to twelve months. The obligation of the Board for the payment of reimbursable losses is limited in Section 215.555(4)(c)2., Florida Statutes and shall not exceed the actual claims-paying capacity of the Fund. The Board recognizes that its good faith estimate is being made while highly volatile global financial market conditions exist; therefore, changing market conditions can dramatically impact the Fund’s actual loss reimbursement capacity either positively or negatively. Current conditions may or may not be the same if and when the Board determines that it is necessary to seek the issuance of revenue bonds.