Dexion prepares for London listing of new fund of hedge funds

The new fund of hedge funds will provide investors with direct access to the
investment skills of Stamford, Connecticut-based K2 Advisors, L.L.C., an
institutionally focused fund of hedge funds manager with offices in New York and
Tokyo and USD 1.6 billion in assets under management.

Launched in October 1994, K2 Advisors has a proven 9 year track record of
delivering risk-adjusted returns with a consistent investment strategy and
management team. K2 Investment Partners, L.P. has delivered net USD
annualised returns of 15.8%. Dexion Capital expects that negotiated capacity
should ensure Dexion Equity Alternative can closely replicate K2 Investment
Partners, L.P.

Dexion Equity Alternative will target absolute returns of at least 10-15% per
annum over any five year period with low correlation to traditional equity
benchmarks and an annualised volatility target of less than 8% whilst preserving
capital in all market conditions,

It will invest in an actively managed portfolio of hedge funds diversified by
manager, style and strategy. Generally 60-70% of the portfolio will be invested in
equity long/short strategies with 30-40% invested in low volatility strategies such
as relative value arbitrage, distressed securities and merger arbitrage.

The new fund of hedge funds will be a closed-ended investment company
registered in Guernsey. It will be regulated by the UKLA (a division of the FSA)
and the Guernsey Financial Services Commission.

There is a single class of ordinary share, priced in Sterling. These shares are
expected to be ISA/PEP/SIPP/SSAS qualifying. The fund’s USD currency
exposure will be fully hedged to sterling through monthly rolling forward contracts

Management fee is 1.50% (inclusive of 0.50% trail commission available to
“qualifying” places) and the performance fee is 10% of gains subject to trigger of
3% per annum and high watermark.

The placing price per share is 100p. The placing is being handled by the London
branch of ABN AMRO (Hoare Govett) and closes at 5.00 p.m. on 25 March 2004.
Placing monies due and dealings will commence on 1 April 2004.