DISTRIBUTION UPDATE: Checks were mailed on Thursday, December 15, 2011 for the Class 3 and Class 4 distributions authorized by the Court. Please note: Claimants with more than one type of claim will receive a check for each claim. Each check was mailed in a separate envelope.

PLAN APPROVAL UPDATE: On December 21, 2011, the Judge signed the Order Approving the Second Modified Distribution Plan of Receiver. - see link below for attached copy.

On July 27, 2011 the Receiver filed its First Modified Distribution Plan of Receiver (the"First Modified Plan"), which among other things, classifies claims and interests into six classes and provides specific terms for the distribution of funds to creditors holding Allowed Claims. - see link below for attached copy.

On August 8, 2011, support for the First Modified Plan was filed by Class 1 Creditor (Plaintiff Wells Fargo Capital Finance) - see link below for attached copy. In addition, no objections to the First Modified Plan have been filed by Class 2 (Other Secured Claims); Class 3 (General Unsecured Creditors holding Allowed Claims in the amount of $100,000 or more); Class 4 (Convenience Class - Unsecured Creditors holding Allowed Claims in amounts less than $100,000); or Class 6 (NPG Equity (ESOP) Interests).

On August 8, 2011, counsel for certain Chinese Drywall Claimants, holders of Class 5 (Chinese Drywall Claims) filed their Chinese Drywall Claimants' Objection to the First Modified Plan - see link below for attached copy. On August 15, 2011 the Receiver filed its response to the Chinese Drywall Claimants' Objections to the First Modified Plan - see link below for attached copy. In the Receiver's response, the Receiver asks the Court to overrule the Chinese Drywall Claimant Objection and approve the First Modified Plan.

As of September 6, 2011, all objections to the First Modified Plan have been resolved with the exception of the Chinese Drywall Objection. A hearing to consider the Chinese Drywall Objection and the Receiver's request for approval of the First Modified Plan is set for September 20, 2011 at 9:30 a.m. before the Honorable Garr M. King, Mark O. Hatfield United States Courthouse, 1000 SW Third Avenue, Portland, Oregon 97204.

On September 20, 2011, a hearing was held to consider the First Modified Distribution Plan of Receiver. At the conclusion of the hearing, the Court declined to approve the First Modified Plan and granted in part certain objections that had been raised by the Chinese Drywall Claimants. The Court has entered an order (the "Order") requiring the Receiver to prepare and file a Second Modified Distribution Plan providing for certain revised treatment applicable to Chinese Drywall Claimants as noted in the Order. A copy of the Order has been added to the website below (see item #10 under "Receivership Distribution Plan").

On October 21, 2011, the Receiver filed its Second Modified Distribution Plan of Receiver (the"Second Modified Plan"), which among other things, revised treatment applicable to the Chinese Drywall Claimants. - see link below for attached copy. A hearing to consider approval of the Second Modified Distribution Plan is set for November 22, 2011 at 9:30 a.m. before the Honorable Garr M. King, Mark O. Hatfield United States Courthouse, 1000 SW Third Avenue, Portland, Oregon 97204.

On November 15, 2011, counsel for Endurance American Specialty Insurance Company and Endurance American Insurance Company and counsel for Lexington Insurance Company filed their Objections to the Second Modified Plan - see links below for attached copies. On November 21, 2011, the Receiver filed its response to the Objections of Lexington Insurance Company and Endurance American Specialty Insurance Company and Endurance American Insurance Company to the Second Modified Plan - see link below for attached copy.

A hearing was held on November 22, 2011 to consider approval of the Receiver's Second Modified Plan of Distribution (the "Plan") and the objections filed thereto. The Judge directed the parties to confer on proposed language to address the concerns of the insurance companies as to the Chinese Drywall claims and submit proposed language to the Court by December 5, 2011. The Receiver requested permission to proceed with distributions to Class 3 and Class 4 claimants as outlined in the Plan. On December 7, 2011 the Judge signed the Order authorizing the distributions - see link below for attached copy. The Receiver is hopeful that the distributions will take place before the end of this year.