Naz News, Gappers and FLE's

[mcmike]

[e-mail]

Dear Sirs,

I am interested in increasing my investment in SUNH.
Your release today indicated an earnings upside due to discontinued operations. You also stated:

"Sun has been experiencing favorable interest rates related to the variable portion of its bank term loans throughout 2008. Sun expects that its total interest costs for 2008 will be approximately $3.6 million less than originally projected, and has increased its pre-tax earnings guidance to reflect the favorable interest expense. Currently, approximately $200 million of the bank term loans are subject to LIBOR resets. Of that amount, approximately $150 million will be reset at the end of November 2008."

But the current credit crisis and loss of liquidity in financial networks is paralzying the system: "The London interbank offered rate, or Libor, that banks charge each other for such loans climbed 6 basis points to 4.21 percent today, the highest since Jan. 11, the British Bankers' Association said. The corresponding rate for euros advanced 3 basis points to a record 5.32 percent. The Libor-OIS spread, a gauge of cash scarcity among banks, widened to a record."

http://www.bloomberg.com/apps/news?pid=20601085&refer=europe&sid=aM2CD9k.CgyM

Can you still claim a $3.6 million dollar saving from interest rate expense if you are resetting $150 million in 2 months? Or should I presume that your Q4 earnings will be favorably impacted, but the reset will lead to increased interest expenses reported in Q1'09 and subsequently negative consequences?

Thank you for your attention to my question, and Congratulations on being one of the very few companies to shine today in an incredibly difficult market.