Carol Lavengood Copyright Business Wire 2009BOSTONBusiness WireOrthofix International NEST on February 5 through midnight onFebruary 12The trash talking has started and is in full forceBut there is no way Medvedev is powerful enough25 2010 at the Embassy Suites in Concord NCLadies and gentlemen I proudly present youWriting by Melissa Akin editing by John Stonestreet RussiaRealistically this is more fiction than truthNormal cells arenot affected by JX594 resulting in safety and tolerability"Despite weak market conditions, December cash flows fromConversus portfolio were again positive reflecting the strength, diversity andmaturity of our portfolio. We believe these portfolio attributes not only helpmitigate the adverse effects of the current market downturn, but they alsoprovide the building blocks for future NAV growth." Realized gains were $6.8 million in December while unrealized losses inConversus private holdings totaled $156.5 million. The unrealized lossesincluded the discretionary write-downs of $121.2 million and reversals ofpreviously recorded unrealized gains of $10.3 million. The public equity securities in Conversus portfolio experienced unrealizedgains of $8.1 million. 
In addition, Conversus recorded an unrealized loss of$0.5 million relating to the $75.0 million notional swap which hedges a portionof the public equity exposure in its portfolio. Unrealized currency gains totaled $7.8 million in Conversus private holdingsand $2.6 million in its public equity securities. A further 13of the investment NAV was comprised of public equity securities which weremarked to market as of December 31 as further described below in Valuation andReporting Policies. The remaining 4 of the investment NAV represented cash andother net assets held by the funds in which Conversus is invested. Investment ActivityIn December, Conversus closed one primary commitment of $10.0 million to NewEnterprise Associates 13, L.P. As previously disclosed, Conversus closed on thepurchase of a portion of a secondary portfolio of funds at a transfer price of$1.2 million in October 2008. The remaining portion of this secondary purchaseis expected to close in the first quarter of 2009.
Conversus has also committedto purchase one additional secondary portfolio of funds. Details for thesesecondary purchases will be disclosed when they are concluded, to the extentpermitted by the general partners. There can be no assurance as to whether thesecommitments will close or the actual amounts of the commitments that will beaccepted, if any. For a detailed breakdown of Conversus Private Equity Portfolio as of December31, 2008, please visit the Investor Relations section of Conversus website at and view the following headings: "Reports and FinancialStatements" and "Investment Information." Liquidity Enhancement ActivityDuring the month of December, a total of 137,960 Conversus units wererepurchased pursuant to a Liquidity Enhancement Agreement (the "Agreement") withRoyal Bank of Scotland ("RBS") at a total purchase price of $1.5 million, or anaverage price per unit of $10.76. Over the life of the Agreement, a total of845,424 units have been repurchased at a total purchase price of approximately$16.7 million, or an average price per unit of $19.74. Under the Agreement, RBShas authority to repurchase a total of 3.7 million units. The repurchased unitsare held on Conversus balance sheet as Treasury Units.
As it deems appropriate,Conversus expects to continue to repurchase its units pursuant to the Agreementat attractive prices relative to NAV. Valuation and Reporting PoliciesConversus carries investments on its books at fair value in accordance withaccounting principles generally accepted in the United States ("U.S. GAAP").Conversus uses the best information it has available to estimate fair value.Fair value for private equity interests begins with the most recent financialinformation provided by the general partners, adjusted for subsequenttransactions, such as calls or distributions, as well as other informationjudged to be reliable that indicates valuation changes, including realizationsand other portfolio company events. The value of any public equity securityknown to be owned by the funds based on the most recent information reported tous by the general partners has been marked to market as of December 31, 2008 anda discount has been applied to such securities based on an estimate of thediscount applied by the general partners in calculating NAV. Conversus will issue quarterly financial reports as of March 31, June 30 andSeptember 30 as well as an annual financial report as of December 31 of eachyear. These reports will include financial statements prepared in accordancewith U.S GAAP.
