BluMont Man Multi-Strategy Series 2 Notes close at C$52.1 million

Date: Friday, March 19, 2004

BluMont Capital Inc. (TSXV: BCC) is pleased to announce that its wholly-owned subsidiary, BluMont Capital Corporation ("BluMont Capital"), has raised C$52.1 million on the closing of the BluMont Man Multi-Strategy Series 2 Notes ("Series 2 Notes") - a multi manager, multi-strategy product structure with a principal repayment guarantee by Citibank Canada. The successful offering, which closed March 18, 2004, was supported by a syndicate of agents led by CIBC World Markets Inc. which includes BMO Nesbitt Burns Inc., National Bank Financial Inc., RBC Capital Markets, TD Securities Inc., Dundee Securities Corporation, HSBC Securities (Canada) Inc., Canaccord Capital Corporation, Desjardins Securities Inc., First Associates Investments Inc. and Raymond James Ltd.
With the aim of delivering double-digit annual returns with lower than equity market volatility, the Series 2 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 an annualized net return of 13.1% as of January 31, 2004. Initial capital invested in the Series 2 Notes will be 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 investments, meaning the Series 2 Notes have the potential to enhance portfolio returns, reduce overall risk and provide valuable diversification benefits irrespective of how the markets perform.

The BluMont Man Multi-Strategy Notes program is part of BluMont Capital's strategic alliance with Man Investments ("Man"), one of the world's largest independent alternative investment managers. The closing of the Series 2 Notes brings the total assets raised in the BluMont Man structured products program to approximately C$266 million in just twelve months.

"We are extremely pleased with the success of the Series 2 Notes offering and the continued demand for BluMont Man structured products," said Toreigh Stuart, Chief Executive Officer of BluMont Capital. "It is our intention to deliver similar types of products to the retail market on a regular basis".