IN OFFICIAL LIQUIDATION

Freerider's Joint Official Liquidators have since their appointment on May 13th 2010 been in the process of securing the optimal return for its constituency with the sale of Freerider's assets, which include but are not limited to the following:

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1. A 61.9% equity interest in e-Traction Worldwide S.C.A. ("EWW"), the parent company of the wholly owned subsidiaries e-Traction Europe B.V. ("EEU") and e-Traction North America, LLC ("ENA").

2. Freerider entered into a sale/lease-back arrangement regarding all disclosed and undisclosed intellectual property rights ever generated by EWW and its subsidiaries EEU and ENA with the following three agreements: 

a. Freerider has acquired the unrestricted, perpetual, global commercial rights to all then existing intellectual property generated by EEU with the Asset Purchase Agreement (“APA”) as of July 3rd 2003.

b. Freerider has also acquired the unrestricted, perpetual, global commercial rights to all disclosed and undisclosed intellectual property rights generated by commercial and technical developments, subsequent to the aforementioned APA, by EWW and/or its subsidiaries EEU and ENA by means of the Technology Advisory Services Agreement (“TASA”) dated July 17th 2003.

c. Freerider (its successors and assigns) shall be the recipient of the anticipated string of royalties resulting from the Intellectual Property License Agreement (“IPLA”) dated July 17th 2003 by which all rights obtained by Freerider with the afore referenced APA and TASA are being licensed to EWW and its subsidiaries EEU and ENA.

3. The Intellectual Property rights registered in the name of the Company.

4. Anticipated licensing agreements with third parties for some or all of the Intellectual Property rights acquired by Freerider (its successors and assigns) for specific product classes, countries, regions or territories, etc. are said to be very valuable. For example: at the time of filing of the winding-up petition, Freerider limited had nearly reached an agreement to license all its IP rights to a South Korean entity for a lump sum of US$ 7.5 million and minimum annual (sales unit based) royalties of US$300,000. South Korea represents 1.5% of global GDP, while Freerider hold rights in countries jointly representing 85% of global GDP. Extrapolating the South Korean opportunity to a global environment could conceivably yield revenues 58 times greater (i.e. US$ 435 million upfront plus a minimum of US$17 million per annum).

5. The anticipated proceeds from the litigation initiated by Freerider in Zutphen (NL) on October 17^th 2007. Status: 1) trial has been completed, 2) interim verdict has been published, and 3) awaiting final verdict upon pending input of the litigants on a narrow aspect of New York law. Potential value as of September 2011: €9+ million.

6. The anticipated proceeds from the litigation initiated by Freerider on July 23rd 2008 in New York for breach of contract, breach of fiduciary duty, tortious interference and aiding & abetting, etc. Status: in the disclosure/deposition  phase. Potential value: reaffirmation of APA, TASA and IPLA and an award of US$85 million in damages being claimed. Contingency fee arrangements available. 

To obtain additional information, please contact the Joint Official Liquidators, Roy Bailey and Rob McMahon and/or Pieter le Comte (the single largest stakeholder in Freerider):

Roy Bailey: Roy.Bailey@ky.ey.com or +1 (345) 814-8920 

Rob McMahon: Rob.McMahon@ky.ey.com or +1 (345) 814-9008

 or write to: Ernst & Young Ltd. 62 Forum Lane, Camana Bay, Box 510 Grand Cayman KY1 - 1106, Cayman Islands

  AND/OR

Pieter le Comte: plecomte@freeriderltd.com or +1 (914) 764-0295

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