Ben ChengHot House Growers Income FundVEG.UN.TOWAITNov 12, 2004

In 2004 and early 2005, they had a good hothouse crop, but unfortunately regular crops were exceptionally good. They were forced to reduce their distributions materially. Just recently they partially reinstated the distributions. A very seasonal business. Would avoid this one.

Runs an agriculture commodity which periodically runs into supply imbalances and the price crashes. Would prefer to see less debt on the balance sheet.

Distributions have been cut to zero. Tomato prices have drastically decreased. Their product can be very volatile. Doubt if distributions will come back until the second half of 2005. Have some bank covenances they have to meet.

Price dropped with the price of tomatoes and they had to cut their distributions indefinitely. A very volatile priced commodity. If the price of tomatoes remain high, there will probably be a distribution re-instated in the new year.