--secures underwriting and new director

The German/Austraian are coming back in--they love this story.

Income from Mining,port facilities plus revenue from Spaceport,refugee settlement and HUGE compensation for loss of phosphate incurred.

For those that are unfamilar with Govt resumption of land,in this case the Govt has to pay the company the value of the phosphate contained .--its a bit like getting all your revenue in one year without mining.

Asset Backed Holdings Limited is pleased to announce that it has
entered into Underwriting Agreements effective today for the
underwriting of the exercise of the balance of approximately 29
million Options in the Company exercisable at 35 cents each on or
before 8 August 2002. The Underwriting has been completed pursuant to
separate Underwriting Agreements with Somerset Financial Group Inc
of 349 Wall Street, Princeton New Jersey in the United States as to a
maximum of 15 million of the Options (ie, approximately 50% of the
Options) and with KLM Equity AG Wertpapierhandelsbank Hafenstrasse 54
Frankfurt Germany as to the balance of the Options. Any shortfall in
the Options conversion will be shared equally between the two
Underwriters. In addition, Mr Ludger Kohmascher has today joined the
Board of Directors of Asset Backed Holdings Limited. Mr Kohmascher of
Osnabruck Germany, is also a director of Grange Resources NL and
ECAT Limited.

The fee payable for the Underwriting is 5% of the exercise for the
whole of the approximate 29 million unexercised Options, being
approximately $510,000.

The Underwriting Agreements while separate, are dependent on the
performance of each other and the Underwriting Agreement with KLM
Equity AG, is fully sub-underwritten, and is conditional upon full
performance by all Sub-Underwriters.

Both Underwriting Agreements contain Termination clauses normally
associated with Underwriting Agreements including:

1. fall in the Australian Indices of 10% of more;

2. fall in the Euro to below $1.40 for 1 Euro;

3. change in the ASIC Class Orders preventing the seller of shortfall
shares to sell shortfall shares without a disclosure document;

4. misinterpretation of information and warranties by the Company;

5. default by the Company under the Agreements;

6. announcement of major changes to monetary, taxation, exchange or
fiscal policy by the Australian Government;

7. fundamental change in Australian economic or political conditions;

8. adverse trading conditions of the Company; and

9. outbreak of hostilities.