Northwater Market-Neutral Trust

Date: Friday, May 3, 2002

The Northwater Market-Neutral Trust announced today that the projected net asset value of the Trust per unit, as at April 30, 2002, is $19.08. The return of the Trust for the month of April is estimated at 0.70%. The rolling 12-month return for the Trust is approximately 5.62%. The Trust will firm up its net asset value as reports from its managers and their administrators are finalized. The final net asset value will be provided to investors once it is available. For the month of April, 39 of the Trust's 45 managers posted positive returns. As a result, six of the seven market neutral strategies included within the Trust's portfolio added to the bottom line. Specifically, the Trust's convertible bond arbitrage, loan origination and mortgage-backed securities managers posted strong returns. New issuance in both the convertible bond and mortgage markets continues to benefit Northwater's managers. By contrast, the Trust's market-neutral equity managers posted below average returns as equity volatility declined to levels unseen in several years. Subject to limits set out in the Trust's prospectus, the Trust is required to purchase its units in the market in the event that the market price falls below 92.5% of net asset value. The Trust also makes purchases of its units pursuant to a normal course issuer bid. For the month, the Trust's purchase of its Units under these programs added approximately 10 basis points to returns. The Northwater Market-Neutral Trust is a well-diversified fund of market-neutral hedge funds. Units are listed on The Toronto Stock Exchange under the symbol NMN.UN.