ERROR RG P4 4.10.2000 A statement in yesterday's Royal Gazette saying that Bob Richards wanted to float Gulfstream on the Bermuda Stock Exchange was incorrect. The plan was to float CellularOne.

Customers who have invested hundreds of thousands of dollars with Gulfstream Financial were on Friday assured their assets would be safe after the bulk of the business was sold to another company.

Gulfstream Financial, which is owned mainly by E.T. (Bob) Richards, announced on Friday that they had sold up and were transferring their brokerage to First Bermuda Financial Services Ltd.

Steven Fox, financial controller for Bermuda Asset Management -- another company in which Mr. Richards is the main shareholder -- said letters had gone out on Thursday to customers of Gulfstream.

He said: "Basically First Bermuda Financial Services have acquired the clients, their cash and assets, but not any assets of Gulfstream.

"We give our assurance to Gulfstream customers. We would like to tell customers that any money will be transferred.'' According to Gulfstream, the transfer of assets to First Bermuda would mean all Gulfstream customers would automatically become First Bermuda customers.

It is not known how much money under management has been transferred or how much the Gulfstream business was sold off for.

Two of the brokers will be transferred to First Bermuda, but the company declined to say if any staff would lose their jobs as a result of the deal.

And it is not known if Gulfstream will go into liquidation in due course, but a statement said: "After customer accounts and associated assets are transferred to First Bermuda, Gulfstream will cease operations.'' Mr. Fox said on Friday: "The company will cease operations as a brokerage firm.'' When asked what would happen to the company and if it would go into liquidation, he said: "I do not know if it is going to go into liquidation.'' When asked if anyone would lose their jobs in the deal, he said: "Yes, well, I don't want to say.'' But he invited any customers with any queries to call Gulfstream. The statement from Gulfstream continued: "Mr. Richards, the chairman of Gulfstream Financial, stated that exiting the brokerage business allowed him and his staff to concentrate their efforts on their core asset management business through Bermuda Asset Management Ltd.

"Jeffrey Conyers, the Chief Executive Officer of First Bermuda, commented that consolidation, by way of mergers and acquisitions, has been a prevalent theme in the financial services business worldwide and Bermuda is no exception. He added that his company was looking forward to providing Gulfstream clients the full scope of financial services available at First Bermuda.'' Gulfstream was set up in the early 1990s by Mr. Richards as a brokerage and financial planning company.

Mr. Richards took over Gulfstream from Carolyn Hall after he began legal proceedings against the firm. The dispute was settled out of court.

In August last year Mr. Richards, the former UBP Senate Leader, said that he wanted to list Gulfstream on the Bermuda Stock Exchange some time this year.

He was at the time looking for Bermudian investors with $50,000 to invest in high tech stocks in the cellular market.

In March last year Mr. Richards said that the other company in which he has a majority stake, Bermuda Asset Management, was severing its ties with money management giant Invesco/Amvescap Plc to go independent.

The asset management company became a wholly owned Bermudian company. At the time a family-owned holding company, the Richards Financial Group, was formed to own and control the principal operating companies of Bermuda Asset Management, Gulfstream Financial Ltd and Bermuda Information Technology Services Ltd.

E.T. (Bob) Richards