DECEMBER 3, 2008 CIRCULAR NO. 26/08 TO MEMBERS OF THE ASSOCIATION Dear Member: PREVENTION OF ACTS OF PIRACY AND ARMED ROBBERY AGAINST SHIPS: MARITIME SECURITY CENTER (HORN OF AFRICA) AND EU NAVAL FORCE (EU NAVFOR) It is believed that the following information will be of interest to Members in amplification of Circular 21/08, Prevention of Acts of Piracy and Armed Robbery Against Ships: Industry Information, of November 29, 2008. Your Managers have been informed that an EU Naval Force (EU NAVFOR) is to be deployed later this month with the aim of achieving stability within the region around the Horn of Africa and the Gulf of Aden. The operation will be entitled ATALANTA. EU NAVFOR has been assigned to improve maritime security off the Somali coast as part of the European Union's policy of stabilizing Somalia in general. This will entail escort duty for shipments under the World Food Program's humanitarian efforts. The initiative will work in close cooperation with other important regional actors such as the United Nations, the African Union, the World Food Program, the International Maritime Organization and various shipowners' organizations. In accordance with the humanitarian purpose intrinsic to the operation, the task force will also be available to protect vessels in transit off the Somali coast and will also offer deterrence, prevention and intervention with a view to curtailing acts of piracy and armed robbery in that region. This will be in fulfillment of United Nations Security Council Resolution 1816, as recently affirmed by Resolution 1846 adopted yesterday, December 2, 2008, which sanctioned military forces to use “all necessary means to repress acts of piracy and armed robbery at sea”. The Maritime Security Centre (Horn of Africa), or MSC(HOA), is a commercial maritime link to the EU NAVFOR and other naval forces operating in the area. Its remit is to assist – and provide reassurance to – the commercial shipping community through the sharing of information 24 hours a day, 7 days a week. As a result, the MSC(HOA) has established a website for the purpose of providing information and guidance at www.mschoa.org . Members are encouraged to refer to this site if they are contemplating, or actually performing, transits in the region of which the Horn of Africa and Gulf of Aden form part. The site includes updated information on subjects such as: • maritime intelligence; • registration of vessel movements; • report incidents; • alerts on acts of piracy; and • advice to masters. For further information, please refer to the American Club website at www.americanclub.com or contact George Tsimis, Senior Vice President and Head of Claims at Tel: +1 212 847 4501, Fax: +1 212 847 4599 or Email: george.tsimis@american-club.com or Dr. William Moore, Senior Vice President of Risk Control for the Shipowners Claims Bureau, Inc. at Tel: +1 212 847 4542, Fax: +1 212 847 4596 or Email: william.moore@american-club.com . Yours faithfully, Joseph E.M. Hughes, Chairman & CEO Shipowners Claims Bureau, Inc., Managers for THE AMERICAN CLUB