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Posted January 28, 2008:

Class Counsel makes the following status report to all Class Members:

All Category Awards and all Extraordinary Injury Fund (EIF) awards have now been made by the Special Masters, except for awards that may result from award decisions that are on appeal. 100% of the Category Awards made to date have been paid. The total amount paid to class members for Category awards is $62,881,500.00. The total amount of EIF awards to date is $16,200,000.00. The EIF awards have not yet been paid.

The Special Masters have considered 400 claims in this case. One claim was dismissed by the Court because it was filed too late without a valid reason. To date, the Special Masters have made 243 awards and have denied 157 claims. There have been 106 appeals of Category Award decisions to the Appeals Special Master, who has decided 100 of those appeals. The Appeals Special Master reversed 14 of the Special Masters' decisions and remanded those cases to them for awards, which were made. Those awards are included in the total 243 awards. There have been 27 appeals of the Appeals Special Master's decisions to the Boone Circuit Court. To date, the Court has decided 11 appeals. The Special Masters have considered all 178 class members who received awards in Categories 3 and 4 for EIF awards. They made EIF awards to 78 class members and denied awards to 100 class members. To date, there have been 36 appeals of EIF award decisions, which are all pending before the Appeals Special Master. It is possible that additional awards may be made if award decisions are reversed on appeal by the Appeals Special Master or by the Court.

As all claimants were advised, the settlement originally included of $25,000,000.00 in Senior Unsubordinated Notes from Catholic Mutual Insurance entities. In April 2007, Catholic Mutual made a scheduled payment of $5,000,000.00 on these Notes. A second payment of $5,000,000.00 is due in April 2008. In addition,most awards to persons who were abused during a time period covered by Catholic Mutual Insurance are subject to reinsurance policies held by Catholic Mutual. When these awards were paid, Catholic Mutual applied for reinsurance proceeds. Reinsurance proceeds began to be received in January 2008 and are being deposited into the settlement funds to reduce the amount of the Notes. It is expected that a substantial percentage of the EIF awards will be paid in February due to the receipt of additional Catholic Mutual reinsurance proceeds during January and February 2008, which will retire a portion of the Notes in the settlement fund.

The Settlement Agreement requires that 5% of the total settlement be reserved for the Counseling Fund, which has been and continues to pay for mental health treatment of abuse victims, and that 5% be reserved for the Minors Fund, which is set aside for claims by persons born after October 21, 1980.

There are sufficient assets in the Settlement Funds to pay all awards and to fully fund the Counseling and Minors Funds.

During the course of the settlement, an independent CPA auditing firm, Clark, Schaefer & Hackett Co., located in Cincinnati, Ohio, has periodically made audit tests of the procedures used in the settlement and of the numerous transactions that have taken place through US Bank. The audit firm has approved all actions to date and has submitted written reports to the Court and to the Settlement Master. The Settlement Master has submitted 15 written reports to the Court between May 5, 2006 and January 23, 2008, approximately every 45 days. These reports are filed in the public record and set forth detailed information on the status of each settlement escrow fund and of the claims and appeals process to date. When all appeals have been resolved and all awards have been paid, the independent auditor and the Settlement Master will make a final detailed report to the Court describing exactly what occured in the settlement process of this case. Pursuant to Court Order, no class members or claimants in this case has been or will be identified in the public record. Each class member will receive a copy of the final report. The timing of the final report will depend on the processing of the pending appeals and the payment of EIF awards.

To preserve your rights to participate in the Settlement or any further proceedings, victims must take immediate action. You must complete the Confidential Census Form and send it to Class Counsel no later than November 10, 2005.