ST GEORGE'S, Grenada - Grenada announced yesterday that it has revised certain terms of its offer to exchange new U.S.$ and E.C.$ bonds for a substantial portion of its external and domestic bonds, commercial loans and guaranteed debt. The exchange offer is described in an Offering Memorandum dated September 9, 2005. These revisions will affect the new U.S.$ and E.C.$ bonds that Grenada expects to issue upon closing of the exchange. Pursuant to the revised terms of the exchange offer, the new U.S.$ and E.C.$ bonds will accrue interest at the new interest rates per year set forth below: From(and including) To(but excluding) Previous New Sept. 15, 2005 Sept. 15, 2008 0.85% 1.00% Sept. 15, 2008 Sept. 15, 2011 2.00% 2.50% Sept. 15, 2011 Sept. 15, 2013 4.00% 4.50% Sept. 15, 2013 Sept. 15, 2015 5.50% 6.00% Sept. 15, 2015 Sept. 15, 2017 8.00% 8.00% Sept. 15, 2017 Sept. 15, 2018 8.00% 8.50% Sept. 15, 2018 Sept. 15, 2025 8.00% 9.00% To allow holders additional time to tender their eligible claims, Grenada has extended the expiration date of the exchange offer to 3:00 p.m. (New York City time) on October 12, 2005 from the previous date of October 7, 2005. The announcement date will also be moved to on or about October 17, 2005. The closing date will remain on or about October 28, 2005. Grenada also announced that the creditors holding approximately U.S.$175 million of eligible claims (equal to approximately 75% of the eligible claims in aggregate) have indicated that they intend to tender their eligible claims in the exchange offer. Grenada does not intend to pay any non-tendered eligible claims unless resources become available to do so. The Government may decide, however, to continue normal debt servicing of domestic commercial loans and certain domestic bonds to the extent that the Government concludes that failure to do so could destabilize the financial sector. Grenada may not close the exchange offer or issue any new bonds unless eligible claims in an aggregate principal amount equal to at least 85% of the total principal amount of eligible claims (other than guaranteed claims) shall be tendered. This condition may be waived or amended by Grenada in its sole discretion. Grenada has engaged Bear, Stearns & Co. Inc. to act as dealer manager in connection with the exchange offer. Questions regarding the exchange offer may be directed to Bear, Stearns & Co. Inc., Global Liability Management Group, at 1-212-272-5112 (call collect). Copies of the supplement will be distributed to holders of Eligible Claims. Copies of the Offering Memorandum, the supplement, the Letter of Transmittal and the Letter of Acceptance may be obtained from the information agent, D. F. King & Co., Inc., at 1-212-269-5550. Reprinted from Caribseek.com