Arrow Hedge extends offering of Multi-Strategy Notes

Date: Tuesday, June 3, 2003

Arrow Hedge Partners Inc. announced Tuesday that Arrow Hedge Partners is extending the offering period for the Arrow Multi-Strategy Notes, Series I. The Notes are now available for purchase through FundSERV until June 20, 2003 with final settlement on June 25. "Investors will have the assurance of guaranteed principal repayment, the benefit of consistent return potential through a fully diversified fund of hedge funds, and comprehensive risk management from an industry leader. All with a low minimum investment of $5,000 that is tax efficient and fully RRSP eligible", said Jim McGovern, managing director and CEO. Note holders are guaranteed principal repayment at maturity plus any appreciation in the value of the fund. The notes are issued by BNP Paribas (Canada) and guaranteed by BNP Paribas SA. The notes' performance is linked to the Arrow Multi-Strategy Hedge Fund, which has an annual absolute return objective of 7-9%, after all fees. The fund is designed to deliver consistent monthly returns regardless of market conditions, with low volatility, and low correlation to traditional stock and bond markets. The fund expects to allocate to 20 hedge fund managers across 9 different investment strategies, which include, but are not limited to: long/short equity, equity market neutral, high yield hedge, risk arbitrage, convertible arbitrage, fixed income arbitrage, distressed securities, managed futures, and global macro. Each underlying hedge fund manager employs stringent risk management procedures. In addition, Arrow performs qualitative and quantitative analysis, rigorous manager due diligence and ongoing monitoring at both the individual fund, and fund of funds level.