Reduction of Capital

Reduction of Capital

THE HERITABLE SECURITIES AND MORTGAGE INVESTMENT ASSOCIATION LIMITED

CONFIRMATION OF REDUCTION OF SHARE CAPITAL PURSUANT TO SECTIONS 135 TO 138 OF THE COMPANIES ACT 1985

Notice is hereby given that the capital of The Heritable Securities and Mortgage Investment Association Limited was by virtue of a written resolution of the Company dated 20 August 2008 and with the confirmation of an order of the Court of Session dated 5 November 2008 reduced from £700,000 divided into 100,000 Ordinary Shares of £7 each (“Ordinary Shares”), of which 50,000 were issued and fully paid up, to £350,007, divided into 50,001 Ordinary Shares, of which 1 is in issue and fully paid up. That reduction was effected by the cancellation of 49,999 Ordinary Shares which were issued and fully paid up.

Burness LLP

50 Lothian Road, Festival Square, Edinburgh EH3 9WJ.

Solicitors for the Petitioner.