Department of
Finance
Madison, Connecticut

Update from State Treasurer Denise Nappier
for STIF Investors on Completion of Cheyne Finance Restructuring and STIF’s Triple A Rating

In accordance with our letter to investors of the Short-Term Investment Fund (STIF) on July 17, 2008, the Office of the State Treasurer has completed conversion of Cheyne Finance notes to the pass-through Gryphon Funding notes. The effect of this transaction leaves STIF a pro rata share, with other senior creditors, of ownership of the portfolio of securities underlying the Cheyne Finance notes. STIF is rated by Standard & Poor’s, and throughout the process of restructuring the Cheyne Finance notes, we have kept S&P informed o developments. S&P has confirmed and continues to maintain STIF’s rating at AAAm -- its highest rating for money funds and investment pools – remarking that STIF’s reserves more than offset any potential shortfall resulting from either the Cheyne Finance or the Gryphon Funding notes. This rating affirms and is consistent with our assessment of and confidence in the stability of STIF as a viable investment vehicle for state agencies and local and municipal entities.

• STIF Investors Message From CT Treasurer Denise L. Nappier