NIG Prospectus - London Stock Exchange

Level: 8 – From: 8 – Thursday, August 9, 2007 – 2:18 pm – mac5 – 3776 Section 01 : 3776 Section 01It is not possible to predict the occurrence of events or circumstances such as or similar to thoseoutlined above or the impact of such occurrences and no assurance can be given that NIG wouldbe able to sustain its current profit levels if such events or circumstances were to occur.Political, Economic and Related ConsiderationsKuwait has enjoyed significant economic growth and relative political stability. There can be noassurance that such growth or stability will continue. Moreover, while the Kuwaiti government’spolicies have generally resulted in improved economic performance, there can be no assurancethat such level of performance can be sustained. NIG may also be adversely affected generally bypolitical and economic developments in or affecting Kuwait.No assurance can be given that the Kuwaiti government will not implement regulations or fiscal ormonetary policies, including policies, regulations, or new legal interpretations of existingregulations, relating to or affecting taxation, interest rates or exchange controls, or otherwise takeactions which could have a material adverse effect on NIG’s business, financial conditions, resultsof operations or prospects or which could adversely affect the market price and liquidity of theTrust Certificates.NIG’s business may be affected if there are geo-political events that prevent NIG from deliveringits services. It is not possible to predict the occurrence of events or circumstances such as orsimilar to a war or the impact of such occurrences and no assurance can be given that NIG wouldbe able to sustain its current profit levels if such events or circumstances were to occur. A generaldownturn or instability in certain sectors of the Kuwaiti or regional economy could have an adverseeffect on NIG’s business, financial condition, results of operations or prospects.Building materials businesses are cyclical in natureOne of NIG’s core businesses comprises the manufacture and sale of building material productsfor the construction industry. The regional construction industry has been cyclical and subject toseasonal fluctuations, experiencing volatility in revenues, profitability and asset values resultingfrom changes in the supply of and demand for construction products and related services. Thedemand for construction products and related services is influenced by regional economicconditions, developments in international trade and exchange fluctuations, embargoes and strikes,among other factors. There can be no assurance that any economic downturn will not adverselyaffect NIG’s existing operations and thereby have a material adverse effect on its business,financial condition, operating results and future prospects and/or its ability to comply with theobligations under the Transaction Documents.Certain risks in relation to BI Group plcBI Group experiences a range of levels of competition in relation to its different businesses andproducts. The level of competition that BI Group faces may increase or decrease over time, whichcould have an effect on BI Group's business, results of operations and financial condition. Inaddition, historically, BI Group’s wholly owned subsidiary, George Wilson Industries wassignificantly reliant on one of its customers, Transco, although the extent of this reliance has beenreduced as a result of the deregulation of the UK market in recent years. BI Group facilities maybe exposed to effects of natural disasters or other potentially catastrophic events. There can be noassurance that any such occurrences will not adversely affect BI Group’s existing operations andthereby have a material adverse effect on its business, financial condition, operating results andfuture prospects. BI Group believes that it has an appropriate level of insurance against majorinsurable categories of risk, including the most likely causes of material damage and businessinterruption.10