Arrow Hedge Partners Inc. Announces Arrow Epic Capital Fund capital distribution to Unitholders

Date: Tuesday, January 6, 2004

Jim McGovern, Managing Director and CEO of Arrow Hedge Partners Inc. of Toronto, Canada, today announced that the Unitholders of the Arrow Epic Capital Fund (the "Fund") would be receiving a distribution in the form of a return of capital on January 31, 2004. The Arrow Epic Capital Fund was closed to further investor capital in August 2003. "The motivation for this decision was to limit the size of the pool of capital to a pre-determined maximum level, allowing the managers to maximize the risk-adjusted returns generated by the Fund," explained Jim McGovern. "Since the closing, the Fund has appreciated considerably; in fact so much that we are now compelled to return a portion of capital back to our Unitholders in the Fund." "The distribution will revert the capital under management back to its optimum level, so as to ensure that the managers are able to continue to operate in an environment that will work to maximize Unitholders' returns over the long term," stated Mark Purdy, Managing Director at Arrow Hedge Partners.