Arrow Hedge proposes fund merger

Date: Monday, March 6, 2006

Unitholders to vote on merger of two Epic funds

Arrow Hedge Partners Inc. has called a special meeting of unitholders of the Arrow Epic North American Diversified Fund to approve its proposed merger of the fund into the Arrow Epic Capital Fund.

The combined fund will continue under the Arrow Epic Capital Fund name, and will be re-opened effective immediately for new investor purchases. The original Arrow Epic Capital Fund has been closed to investors since August 2003 and returned capital to its unitholders in January 2004.

Arrow Hedge says the merger will benefit unitholders of both funds by eliminating substantial duplication in the investment portfolios of the funds, and by enabling Epic Capital Management Inc. to focus on one investment objective and strategy. The merger will also eliminate duplicative administrative and regulatory costs of operating two separate funds.

The unitholder vote is scheduled for March 16. Arrow Hedge that the Arrow Epic North American Fund will be wound-up as soon as reasonably possible following the appoval of the merger.

Arrow Hedge is headquartered in Toronto, with sales offices in Vancouver, Calgary, Montreal and a research office in Geneva. Arrow Hedge currently manages over $600 million on behalf of Canadian retail and institutional investors.