PRESS RELEASE. Dalton Strategic Partnership LLP celebrate third anniversary with record AUM and performance

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1 PRESS RELEASE 2 nd December 2005 Dalton Strategic Partnership LLP celebrate third anniversary with record AUM and performance Dalton Strategic Partnership (DSP) has seen exponential growth of funds under management in 2005 and maintained excellent performance. Total assets under management grew from under $1billion to over $3billion an increase of more than 200%. The growth has been achieved through increased recognition of DSP s distinctive approach to global investing and some spectacular fund performance. In 2005; Two new funds and offices were established to take advantage of potential investment opportunities - the Melchior Greater China Opportunities Fund was launched in April 2005 and is managed by Henrietta Luk from Hong Kong who joined and runs Dalton Capital (Hong Kong) Limited. The Melchior Indian Opportunities Fund is managed by U.R. Bhat who joined and runs Dalton Capital Advisors (India) Pvt Ltd in Mumbai. The Melchior Japan Fund was awarded the prestigious AsiaHedge award for best Japan long/short equity fund. The fund has returned 82.2% since inception and a compound annualised return of 20.8% in US dollar terms to the end of November. Performance year to date is 40.0% in US dollar terms.

2 The Melchior Greater China Opportunities Fund has returned 33.0% in sterling terms to the end of November 2005 compared with the benchmark return of 18.8%. Against its competitor universe of UK registered investment funds, the fund is ranked 1 st out of 228 funds in The Melchior North American Opportunities Fund was launched in November 2004 and has returned 24.5% in sterling terms for the year to November 2005 compared with a benchmark return of 16.0% placing the fund in the top decile against its competitor universe. The Melchior Japan Opportunities Fund was soft-closed on 1 St October 2005 and is ranked 3 rd out of 319 funds in its competitor universe for performance in 2005 and 3 rd out of 296 funds since inception. Performance in the year to November 2005 is 59.0% in sterling terms against a benchmark of 28.9%. The assets under management in the Melchior long only specialist fund range have increased sixfold and maintained strong investment performance in 2005 building on the industry-leading returns achieved in The Melchior European Opportunities Fund has grown from $50m to $200 million. The Melchior Japan Opportunities Fund has grown from $100 to $700 million. The Melchior North American Opportunities Fund has grown from $20m to $41 million The Melchior Greater China Opportunities Fund, launched in April 2005, now has $107 million The Craton Capital Melchior Precious Metal Fund has grown from $20m to $113 million

3 (*All fund assets as at 30 th November 2005) The Melchior range of long-only, specialist equity funds now totals $1.2 billion and invests mostly in mid and small cap companies, most of which are under-researched and under-valued by the market. It remains DSP s objective to cap the size of their funds when they reach a certain level, in order to protect the interests of existing investors. Andrew Dalton, Managing Partner DSP, commented: Our team of fund managers has shown their flair in identifying under-valued and under-researched stocks primarily in the mid to small cap sectors which have the ability of generating strong earnings growth. Despite the recent strength of large cap stocks our funds have continued to perform well. Our range offers an attractive choice of regions and sectors where we believe the greatest opportunities lie. We are particularly delighted with the growth of our specialist funds as well as a number of significant institutional mandate wins. However we are always mindful of our fund managers capacity so, if we feel it is appropriate to take action to slow inflows, we will not be afraid to do so in the interests of our existing investors and to maintain the continuation of long term performance. For further information, please contact: Ends Andrew Dalton, Managing Partner, Dalton Strategic Partnership LLP +44(0) Magnus Spence, Partner, Dalton Strategic Partnership LLP +44 (0)

4 Sophie Hull Charlotte Kettle Vanbrugh Financial Communications Ltd +44 (0) /7 Notes to Editors Dalton Strategic Partnership (DSP) is a global investment management firm founded in 2002 by Andrew Dalton and a number of former colleagues from Mercury Asset Management/Merrill Lynch Investment Managers. Assets under management are US$3 billion (as at 30 th November 2005). The firm s investment approach is underpinned by 3 core investment philosophies. Investments should be managed in a global, multi-asset context. Active asset allocation between international equity, bond and currency markets are at the core of the firm s investment capabilities. Macro-economic research and global investment horizons drive DSP s asset allocation approach. DSP has a highly experienced team of macro managers who provide top-down views. These views are supported by market-specific research from specialist regional equity teams. DSP aims to achieve absolute returns. The managers use short selling strategies in their hedge funds and construct specialist, long-only equity portfolios. These portfolios are unconstrained by benchmark considerations and can hold significant cash levels. DSP believes investors will achieve better returns from investments based on conviction and fundamental analysis by skilled fund managers in concentrated portfolios. A disciplined approach to risk management is vital for successful investment management and in particular for active asset allocation. Risk is controlled by using sophisticated risk modeling techniques and fundamental analysis of stocks, recognising any dangers within them, rather than measuring risk with reference to benchmark indices. DSP views the global investment environment as being unlikely to give outstanding returns over the next five years. Investing in funds that hug benchmark indices will not produce the best returns. However, average returns of 5-8% per annum from equities will hide a huge disparity of returns from individual companies. DSP believes the under-performance of growth stocks, over the last five years, provides opportunities for stock pickers and potential return will be found in companies that are undervalued, under-researched and yet have sustainable growth earnings and clear, dominant franchises. As a result DSP s fund managers tend to focus on mid to small-cap stocks in the developed markets. DSP has identified several investment mega trends. Greater China, commodities, precious metals and oil have the potential to be great mega trends over the next 20 years. DSP has three core businesses - a hedge fund business; a unit trust business, which manages a range of specialist long-only regional equity funds and sector funds; and a segregated portfolio management business offering global flexible asset allocation.

5 DSP is authorized and regulated by the Financial Services Authority. Dalton Capital (Hong Kong) Limited is authorized and regulated by the Securities and Futures Commission in Hong Kong. These are both owned by Dalton Capital (Guernsey) Limited which is regulated by the Guernsey Financial Services Commission. Product Range - Melchior is the brand name of DSP s hedge and unit trust funds. Long-Only Specialist Funds Hedge Funds Segregated Portfolios Melchior Japan Opportunities Fund Melchior European Opportunities Fund Melchior North American Opportunities Fund Melchior Greater China Opportunities Fund Melchior Indian Opportunities Fund Melchior Global Macro Fund Melchior Japan Fund Minimum investment $1million. Global Flexible Asset Allocation Portfolio Minimum investment $10million Balanced Investment Programme Minimum investment $1million These funds are all sub-funds of the Melchior Investment Funds Open-Ended Investment Company, which is an OEIC with variable capital authorised by the FSA. Minimum investment 10,000 Craton Capital Melchior Precious Metal Fund an openended Liechenstein UCIT Disclaimer Dalton Strategic Partnership LLP is authorised and regulated by the Financial Services Authority. None of the statements in this document should be considered as investment advice. The services and investment funds referenced in this document should not be regarded as an offer of solicitation for such services or investment funds in any jurisdiction where such activity is unlawful. This document is not directed at you if we are prohibited by any law of any jurisdiction from making the information in this document available to you and is not intended for any use which would be contrary to local law or regulation. This document and its contents are not intended to sell services or products, rather for reader viewer convenience and informational purposes. Subscriptions will only be received and units or shares issued on the basis of the current prospectus or Scheme Particulars for a fund. Every effort has been made to ensure the accuracy of the financial information herein but it is based on unaudited figures. Past performance is not a guarantee of future performance. The price of units or shares can go down as well as up and may be affected by changes in rates of exchange. An investor may not get back the amount invested. Please refer to the respective

6 funds prospectus for further details. Shares in the funds described in this document are not available for sale in any jurisdiction in which sale would be prohibited. Please note that authorisation does not imply official approval or recommendation.