Headstart Settles 2003 Dispute with the SEC

Headstart Fund Ltd, Headstart Advisers Ltd, an FSA-regulated hedge fund adviser and Mr Najy Nasser, its Chief Investment Officer, today announces they have settled their dispute with the United States Securities and Exchange Commission relating to Headstart's historic involvement in market-timing from which it disengaged in September 2003 prior to re-focusing on its other trading strategies. This will allow Headstart to concentrate on its core business as an investment adviser to offshore hedge funds and expand the business with the launch of new funds. Without admitting or denying the allegations, the civil settlement includes payments of $17 million by the defunct Headstart Fund Ltd (domiciled in the Bahamas), $200,000 by Headstart Advisers Ltd and $600,000 by Mr Najy Nasser, the Chief Investment Officer. This settlement will conclude the case brought by the SEC against Headstart Fund Ltd, Headstart Advisers Ltd and Mr Najy Nasser arising from Headstart's historic market-timing strategy.

Headstart has since September 2003 focused its business on other successful strategies. The Headstart Fund of Funds has returned 65% (or 5.4% average annual net return) since its inception in 1999, whereas most European and US equity markets are down over the same period. Najy Nasser, Chief Investment Officer of Headstart Advisers Ltd said: "Headstart is very pleased to have reached a settlement. We responded to US concerns about market timing and immediately ceased this element of Headstart's business in September 2003. We have since worked hard to build up Headstart's funds using different strategies. As we equalled or bettered our overall returns against our benchmark, we are especially pleased with what we have achieved. "We have superb long-term performance against both the market and our peer group and have some interesting plans to grow Headstart's investment business"

For further information: M:Communications Adrian Flook +44 (0)20 7153 1588 / (0)7768 608396 / flook@mcomgroup.com Caroline Villiers +44 (0)20 7153 1521 / (0)7808 585184 / villiers@mcomgroup.com.

Headstart Advisers Ltd is a financial services company incorporated in 1990, authorised and regulated by the FSA as an investment adviser to the Headstart family of hedge funds. It advises three hedge funds and a fund of hedge funds with the common mandate of superior returns with lower volatility (risk). Its two multi-strategy hedge funds, Headstart Global Fund and Headstart Global Aggressive Fund, have respectively made an average annualised return of 7.8% and 12% over the last 10 years.

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Headstart Advisers Ltd is a financial services company incorporated in 1990, authorised and regulated by the FSA as an investment adviser to the Headstart family of hedge funds. It advises three hedge funds and a fund of hedge funds with the common mandate of superior returns with lower volatility (risk). Its two multi-strategy hedge funds, Headstart Global Fund and Headstart Global Aggressive Fund, have respectively made an average annualised return of 7.8% and 12% over the last 10 years.