ZURICH, SWITZERLAND -- (MARKET WIRE) -- 02/23/07 -- Ferro Capital, a specialist in alternative investment management, is launching its first sector-oriented multi-manager hedge fund program for German Investors, the Ferro Healthcare Hedge Index Certificates, which are linked to Ferro Capital's Healthcare Strategy. The Ferro Healthcare Strategy is a fund-of-hedge funds with a focus on the healthcare sector. For investors, the Ferro Capital Healthcare Strategy offers an attractive alternative to traditional exposures in the healthcare sector thanks to its lower target volatility diversification among underlying managers.

The Ferro Capital Healthcare Strategy consists of a diversified portfolio of hedge funds that Ferro Capital believes are among the best in the healthcare sector. Diversification is achieved both through allocations among sub-sectors of the healthcare industry and through allocations to multiple fund managers. Sub-sectors within the portfolio include pharmaceuticals, biotechnology, medical technology, and healthcare services. The Ferro Healthcare Strategy aims for risk-adjusted returns that outperform traditional long-only stocks or indexes in the healthcare sector.

The Ferro Healthcare Hedge Index Certificates, issued through Rabobank, will launch as of April 2, 2007. The Certificates are available to German investors and the prospectus is available from Rabobank.

The Ferro Healthcare Strategy combines Ferro Capital's experience and network in the hedge fund industry with the experience and network of its principals in the healthcare sector. Ferro Capital's CEO, Kevin Ferro, was a member of the board of directors of Kos Pharmaceuticals, Inc., a fully integrated specialty pharmaceutical company engaged in developing, commercializing, manufacturing and marketing proprietary prescription products for the treatment of chronic diseases with a focus on cardiovascular, metabolic and respiratory diseases, until its acquisition by Abbott Laboratories in 2006, and is currently a member of the board of directors of a privately held, Boston-based emerging drug discovery and design biopharmaceutical company with active development programs to develop differentiated therapies for diabetes, cancer and cardiovascular disease.

"There is increasing demand for hedge fund strategies that focus on selected themes and sectors, particularly from institutional investors. In the U.S., there are more than 1,300 listed companies in the healthcare industry -- some 80% of which are not closely monitored by Wall Street analysts. This makes the sector especially attractive from a hedge fund manager's point of view," comments Kevin Ferro, CEO of Ferro Capital. "The performance of the healthcare sector is also less cyclical than that of other industries, and there is a lower correlation of returns with those of the stock market as a whole."

The Ferro Capital Healthcare Strategy is designed for investors who want exposure to the healthcare sector and are looking for diversification in a variety of sub-sectors or lower volatility than is frequently associated with traditional investments in healthcare. Furthermore, the program may be of interest to investors who wish to complement existing positions in multi-strategy funds-of-hedge funds with investments in sector-specific programs. Rainer Lang, Managing Director of Ferro Capital International, adds: "With the Ferro Capital Healthcare Strategy, investors can benefit from Ferro Capital's network in the healthcare sector and our longstanding experience in the hedge funds industry."

Ferro Capital - Alternative Investment Solutions

Ferro Capital is an independent alternative investment management firm specializing in the development and management of funds-of-hedge funds for clients around the world. The Ferro Capital team has extensive experience in the hedge fund industry and has worked together for many years designing and managing highly successful funds-of-hedge funds and structured alternative investment products. With offices in New York, Frankfurt, and Zurich, Ferro Capital designs and manages a range of funds-of-hedge funds that are tailored to the needs of professional investors. Together with its affiliates, Ferro Capital advises over US$2 billion in investment assets. Ferro Capital LLC is registered as an investment adviser under the U.S. Investment Advisers Act of 1940. Please visit www.ferrocapital.com for further information.

Contact:
Rainer Lang
Ferro Capital International GmbH
Seefeldstrasse 283a, 8008 Zurich
Switzerland
Tel.: +41 (0) 43 336 70 60
Fax: +41 (0) 43 336 70 61
Email: Email Contact