Landmat International, in conjunction with deCODE Genetic, proposes the urgent and timely development of an integrated central database for the diamond certificates of origin verification process. The location of the proposed integrated central database is The Republic of Iceland. The Icelandic government acknowledges the beneficial aspects of this proposal for the international community.

The proposed centralized database will provide information enabling the effective certification by national regulatory bodies and international diamond community - oversight committees. To be recorded in the database, transactions must carry verifiable authorization from a national regulatory authority. Based on these authorizations, the database will process transfers and correlate discrepancies for further clarification and processing by the given national authority.

The Republic of Iceland is located in the North Atlantic Ocean, near the Artic Circle, approximately between Europe and North America. The nation is a constitutional republic with the longest operational democratic Parliament (Althing) in the world. The chief of state is President Olafur Ragnar Grimsson, and the head of government is Prime Minister David Oddsson. Political risk is virtually non-existing in Iceland, the high- tech and other infrastructure is developed and safe. According to the year 2000 Transparency International

Corruption Perception Index, Iceland is ranked sixth in the world in terms of a corruption free society.

Iceland maintains the highest Internet and wireless communication penetration in the world, along with a highly educated population with a literacy rate of 99.9%. Primary natural resources of Iceland are: fish, hydropower, and geo-thermal power. Major industrial sectors are: fish processing, technology, tourism, geo-thermal power, aluminum smelting and ferrosilicon production.

During the Cold War, both the former Soviet Union and United States of America used the nation as a gateway to improved superpower relations.

In order to Ieverage the best of technological expertise Landmat Intemational and deCODE Genetics are pleased to announce the formation of a purposeful proposal. The sole objective is to apply the security expertise of DeCODE Genetics, and unite the world-class professional experience of the two organizations towards the development of a secure integrated central database for the international diamond community and consumers of diamonds worldwide.

It is understandable that any integrated central database for the international diamond community is a sensitive issue. Yet bold imaginative measures are needed to ensure the integrity of the international diamond community and the trust of diamond consumers. This is why we believe that a neutral location for the database is urgently needed. Moreover, the operations of such a database will require a high Level of sophistication in security technology that can be provided. Iceland is a non-diamond-producing nation and non- consumer of rough diamonds; therefore it is viewed that this diamond neutral nation is the ideal Location for the international central database.

Landmat International, headquartered in Reykjavik, Iceland, is a location based information systems and geomatics database firm. Landmat International has a proven track record of working for both Icelandic and international clients both private and public, companies, agencies and governments. Landmat International is working on projects in Africa, Asia, and Europe. A hallmark of the firm is the development of pragmatic information technology solutions for complex issues.

Landmat International is currently working with several Icelandic Ministries and government agencies. Among its clients are Shell International Iceland, Icelandair, the National Bank of Iceland, and the Icelandic Insurance Organization. The firm has excellent relations with the government of Iceland and others. Investors include the largest and oldest commercial bank in Iceland, the largest insurance company in Iceland and highly respected Venture Capital funds.

deCODE Genetics is one of Europe's leading biotechnology firms. deCODE Genetics has developed database services and technology focusing on decision-support tools and privacy products that can be applied to any individually-identified sensitive data, whether or not the data are healthcare-related. These privacy countermeasures allow statistics and summaries to be derived from sensitive data without disclosing the identity of transactions.

The proposed centralized database will provide information enabling the effective certification by national regulatory bodies and international diamond community oversight committees.

The proposed Iceland-based international centralized database will be derived from information on transactions throughout the diamond pipeline infrastructure. The database will produce summary statistics useful for both detecting any aberrant behavior, and reporting patterns and discrepancies that may indicate such aberrations. In order to give accurate statistics and oversight, the database will contain limited information on transactions from all diamond pipeline sites. However, the ability to identify possible issues is left solely with national regulatory bodies.

Transfer authorization will Iink data about transactions from the diamond pipeline infrastructure with the relevant internal associates. The compound effect of such a chain of Iocal authorization at each step in the diamond pipeline will give the guarantee of accurate certificates of origin.

The guarantee of accurate certificates of origin given by the database is achieved without centralizing full information. Rather only data necessary to detect anomalies is gathered in the database, with Iocal authorities retaining the ability to recapture full information about transactions in their part of the diamond pipeline. The absence of such aberrations is sufficient for the database to accurately certify the initial origin of a chain of transactions.

An international centralized database will result in considerable infrastructure being deployed in all countries of the diamond pipeline. Apart from this, Landmat International states, for the record, that of all revenues accumulated through this endeavor it will contribute a portion towards programs that facilitate transfer of technology and capacity building in African and other diamond-producing nations.

Landmat Internationals propose a technical meeting in Reykjavik, Iceland, between October 27-28, 2000, on the international centralized database issue and to view a prototype resulting from this proposal.

[International, Ministerial Diamond Conference Index]