The directors of the BPI American Opportunities Fund Inc.

Date: Thursday, October 31, 2002

We are writing to inform you that the directors of the BPI American Opportunities Fund Inc. have decided to wind up the Fund for the end of December, 2002. The past few years have been a very challenging period for investors and our industry. According to one hedge fund observer, a large number of hedge funds are expected to wind up this year for a variety of reasons - not simply negative returns. While the Fund has experienced a drawdown this year, more importantly, other investors have redeemed their capital over the course of the year. This has resulted in a critically low asset base on which to operate the Fund viably. The BPI American Opportunities Fund Inc. has declined in size from $15.3 million to $4.6 million over the course of 2002. The operating costs are now prohibitively expensive necessitating the closure of the Fund. In terms of alternatives to receiving your investment in cash, you may elect to switch to several other funds that we manage that are both performing well and growing.