LifeStar Holding plc - Interim Directors’ Statement

On 15 November 2011 GlobalCapital plc published its Interim Directors’ Statement covering the period between 30 June 2011 and the date of the announcement. During this period the Group continued to focus on revenue generation, expense reduction and strengthening of internal processes and procedures.

GlobalCapital reported that revenue generation across its different business segments continued to be mixed. On the one hand, GlobalCapital Life Insurance Limited experienced sustained growth in its regular premium revenue during 2011 and GlobalCapital Health Insurance Agency Ltd also registered positive growth when compared to the same period last year. Meanwhile, revenues from the Financial Management and Insurance Brokerage businesses declined when compared to 2010.

The political and economic turmoil currently present in the Eurozone had an adverse effect on the fair valuations of the Group’s portfolio of financial investments and on the demand for the Group’s financial products. GlobalCapital explained that it has a diversified investment portfolio predominantly based on the local market but with significant property holdings mainly in the EU. GlobalCapital plc announced that it has no direct exposure to Greek or Italian sovereign debt and it stated that it is likely to benefit from upwards movements on financial and real estate property but market volatility and uncertainties are likely to persist for the near future.

GlobalCapital also stated that the competitive business operating environment within which the Group operates presented various challenges and hampered its ability to return to positive operating results during the current financial year. During the first 6 months of this financial year GlobalCapital plc incurred a net loss after tax of €1.6 million compared to a loss of €1.4 million for the equivalent period in 2010. GlobalCapital announced that it expects that its consolidated financial results for the financial year ending 31 December 2011 will remain in negative territory which will adversely impact equity at both Company and subsidiary levels.

In the present circumstances the Board is actively monitoring the balance sheet position and GlobalCapital announced that it is taking the necessary steps to meet the appropriate capital and liquidity levels required by Solvency II. More specific actions are likely to be announced before the end of 2011.