American Insured Mortgage Investors

American Insured Mortgage Investors manages its portfolio of mortgage investments. Its investment in insured mortgages comprise participation certificates evidencing a 100% undivided beneficial interest in government insured multifamily mortgages issued or sold pursuant to Federal Housing Administration (FHA) programs and FHA-insured mortgage loans. The mortgages underlying the FHA-insured certificates and FHA-insured loans are primarily non-recourse first liens on multifamily residential developments or retirement homes. American Insured, which is in the process of liquidating its investments, would terminate and dissolve after disposition of all investments held in its portfolio on December 31, 2008, unless terminated earlier under the provisions thereof.