1. The contents of this pamphlet are confidential, and the delivery of this pamphlet and its contents do not constitute an offer of securities in any existing or to-be-formed issuer or a solicitation of an offer to purchase any such securities by any person. Offers of securities will only be made by delivery of a Confidential Private Placement Memorandum. Presentation to Fresno County Employees’ Retirement Association December 7, 2005

2. INTRODUCTION TO LONE STAR FUNDS Lone Star Funds (“Lone Star”) is a global investment firm that acquires financial and real estate assets including secured and corporate unsecured debt and financially-oriented operating companies. Since the establishment of its first fund in 1995, the principals of Lone Star have organized private equity funds totaling more than $13.3 billion of capital that has been invested globally through Lone Star’s worldwide network of affiliate offices. LONE STAR GLOBAL NETWORK Affiliate offices are located in Japan, Korea, Taiwan, the US, England, Ireland, Belgium, Luxembourg, Germany and Bermuda.

3. LONE STAR ORGANIZATION CHART John P. Grayken (London) Ellis Short (Tokyo) Paul Patel Asia Pacific Origination (Taipei) Paul Yoo Korea Origination (Seoul) W. Randall Work Japan Origination (Tokyo) Bruno Scherrer Europe Origination (London) David M. West N. America Origination (Dallas) Louis Paletta Investor Relations (Dallas)

4. LONE STAR FUND IV OVERVIEW Lone Star Fund IV, comprised of Lone Star Fund IV (U.S.), L.P. and Lone Star Fund IV (Bermuda), L.P. (collectively, the “Partnerships”) were established by the Principals in December 2001 to continue their involvement in investment activities with respect to secured and unsecured non-performing loans, high leverage debt financing, and real estate-related debt and equity investments. Such activities were previously conducted through Lone Star Fund III, Lone Star Fund II and Lone Star Opportunity Fund, L.P. The Partnerships, which to date have closed or committed approximately $3.9 billion of the $4.2. billion of combined capital commitments, have invested in a broad range of direct debt and equity investments in secured and unsecured non-performing loans, high leverage debt financing and real estate-related assets, portfolios, joint ventures and operating companies using transaction structures and deal sizes similar to those previously consummated by investment funds in which the Principals had a significant participation. The objective of the Partnerships is to achieve at least a 25% investment level compounded annual rate of return on invested capital (“IRR”) over an estimated 2 – 5 year holding period for each investment. John P. Grayken, who previously formed and managed Lone Star Fund III, Lone Star Fund II and Lone Star Opportunity Fund, L.P, has the ultimate management control of the General Partner of the Partnership. Mr. Grayken, along with other key individuals, comprise the principals (“Principals”) of Lone Star Partners IV, L.P., the common general partner of the Partnerships. Day-to-day management of the assets acquired by the Partnership is provided by Hudson Advisors, L.L.C. (“Hudson”), a 1,000-person asset management company headquartered in Dallas, with affiliate offices in Japan, South Korea, Taiwan, the United Kingdom, France, Germany, and Mexico. Hudson Advisors handles substantially all the management, restructuring, and servicing of assets acquired by Lone Star, including asset management, underwriting, real estate due diligence and valuation, operating company oversight, financing, accounting and reporting, income and property tax compliance, currency and interest rate hedging, risk management, and information technology development and systems support. Hudson Advisors is a rated primary and special servicer by both Standard & Poor’s and Fitch Ratings.

5. LONE STAR FUND IV INVESTMENT SUMMARY  To date, Lone Star Fund IV (U.S.), L.P. and Lone Star Fund IV (Bermuda), L.P., have invested or committed approximately $3,878,510,000 in sixty-five portfolios/investments and working capital/Hudco financing.  Total capitalization of portfolios/investments closed or committed by the Partnerships and other partners are summarized as follows: Acquisition Debt (Third Party)$ 7,613,181,000 * Invested Equity – Lone Star Fund IV (U.S.), L.P. 2,307,633,000 ** Invested Equity – Lone Star Fund IV (Bermuda), L.P. 1,494,757,000 ** (and Special Investment Vehicles) Invested Equity – Other Partners 374,340,000 ** Working Capital/Hudco Financing 76,120,000** Purchase/Acquisition Price$11,866,031,000 *Amount is based on actual and projected leverage. **Amount is based on invested and committed equity projected as of the current date.

6. INTERNAL RATES OF RETURN - Projected Return Summary on Portfolios Purchased

7. INTERNAL RATES OF RETURN - Projected Return Summary on Portfolios Purchased (cont.)

8. LONE STAR FUND IV - FCERA INVESTMENT SUMMARY FRESNO COUNTY EMPLOYEES’ RETIREMENT ASSOCIATION as of November 30, 2005 Commitment $20,000,000 Unfunded Commitment$1,753,361 Capital Account Balance*$20,542,024 Contributions to Date$18,246,639 Distributions to Date$10,467,808 % of Commitment Called91% % of Capital Returned57% Gross Projected IRR*48.43% Net Projected IRR*34.67% * as of September 30, 2005