Montrose Capricorn Finance Fund Suspension Update

The following is from Montrose Asset Management, the manager of the CFF:

Please find attached the first report on the Capricorn Finance Fund, produced for those investors requiring additional information on the current status of the Fund. This report will normally be produced after each calendar quarter end and released after the respective monthly results. This report is being released early and contains results and information up to and including May 2009.

The next quarterly report will be released in October, covering material to the end of the September 2009 quarter. The usual monthly newsletters will continue to be distributed.

Please note that the information contained in the liquidity projections is estimated and does not imply or guarantee future performance or warrant that the return of capital will match the estimates. The figures are based on current information, where available, regarding each fund’s ability to meet redemptions. Estimates may therefore be subject to material change without notice as fund circumstances, market conditions and or foreign exchange rates change.

The global economic crisis has impacted on all of the underlying funds in the Finance Fund and loan reserves and write offs continue to be made. This is causing the NAV to fall. We will be shortly sending out a quarterly update which will cover this in as much detail as possible as well as providing comment on a fund by fund basis. An estimated liquidity /redemption analysis will also be included.

Management fees continue to be charged. These are necessary to ensure, inter alia, that the necessary resources can be allocated to recouping capital and maximising value for all investors as soon as possible.”