BluMont Capital Launches BluMont Man Multi-Strategy Series 3 Notes

Date: Friday, May 14, 2004

BluMont Capital Inc. (“BluMont”) (TSXV: BCC) is pleased to announce that its wholly-owned subsidiary, BluMont Capital Corporation, has launched the third series of the BluMont Man Multi-Strategy Notes (“Multi-Strategy Series 3 Notes”) – a multi-manager/multi-strategy investment product from Man Investments with a principal repayment guarantee from Citibank Canada.

With the aim of delivering double-digit annual returns with lower than equity market volatility, the Multi-Strategy Series 3 Notes are modeled upon the original Man Multi-Strategy Guaranteed Limited fund, which has an impressive three-year track record of positive returns each year since its July 2000 inception and a compound annual rate of return (net of fees) of 13.0% as of March 31, 2004.  To date, Man Investments, a global leader in alternative investment solutions, has raised over US$3 billion worldwide in the Man Multi-Strategy Guaranteed Limited series through six global and nine private launches (as of December 31, 2003). In Canada, BluMont has raised over C$120 million through its previous offerings of the BluMont Man Multi-Strategy Notes and over C$260 million in all BluMont Man offerings since March 2003.

Capital invested in the Multi-Strategy Series 3 Notes will be initially allocated to a wide range of alternative investment strategies that can be categorized into five broad styles – managed futures, arbitrage, fund of hedge funds, equity hedge, and long/short equities. These strategies have low correlation to each other and to traditional equity and fixed income investments, meaning the Multi-Strategy Series 3 Notes have the potential to enhance portfolio returns, reduce overall risk and provide valuable diversification benefits irrespective of how equity and fixed income markets perform.

In addition to providing a principal repayment guarantee by Citibank Canada that guarantees the return of an investor’s initial investment at maturity, the Multi-Strategy Series 3 Notes provide C$150 of investment exposure for every C$100 of initial capital invested, are 100% RSP eligible as Canadian content and are available to investors until June 25, 2004 for a minimum investment of only C$5,000.

“Strong demand for our Note products reinforces investors’ growing appetites for products with principal protection and attractive return potential” said Toreigh Stuart, President and CEO of BluMont Capital. “We are pleased to offer investors another opportunity to access this proven and highly diversified investment product structure from one of the world’s leading alternative investment firms — Man Investments”.