Pro-Hedge launches new hedge fund note. Prinicipal is guaranteed.

Date: Tuesday, May 20, 2003

Pro-Hedge Fund Inc. announced Monday that the firm has launched Pro-Hedge Principal Protected Notes, Univest Series 1. "The Pro-Hedge Fund seeks to achieve long-term growth while reducing the broad swings the markets continue to experience," said Jim O'Donnell, chair of Pro-Hedge Fund's advisory board, and a veteran of the North American financial services industry. "In addition, the fund offers a safe haven for investors because their principal is guaranteed." O'Donnell explained that the Pro-Hedge Fund offers 100% principal guarantee at maturity, which is guaranteed by Société Générale, one of the world's top 20 banks. He said that investors are able to buy Pro-Hedge Principal Protected Notes, Univest Series 1, until July 10, 2003, the closing date for purchase. The performance of the notes is linked to the Univest Ltd. fund, which has produced a 19.45% annualized return since inception (April 1991 - January 1993). In addition, the Univest Ltd. fund has a lower volatility than the long term bond index and has never had a losing quarter. "We created the Pro-Hedge Fund to provide a sound, alternative investment for investors who are frustrated by the poor returns they've been getting in recent years," added Stuart McKinnon, president and CEO of Pro-Hedge Funds Inc. McKinnon said that the notes should appeal to retail investors because they feature a low minimum investment of $2,500 and that they're RSP eligible. In addition, he noted that alternative investments of this kind were previously available only to institutional investors or those classified as "sophisticated" investors.