FCAP.L Regulatory News (FCAP)

FRM Credit Alpha Limited

(the "Company")

3rd compulsory partial redemption of shares

Further to the Company's announcement dated 20 December, 2011, the Company wishes to provide further details of its third cash distribution to shareholders. Approximately £4.5 million is being returned to shareholders by way of a further compulsory partial redemption of shares (the "Redemption") at a price based on the Company's final NAV per share as at 31 December, 2011. The Company's NAV per share as at 31 December, 2011 was 82 pence. Payments of Redemption monies will be effected either through CREST (in the case of shares held in uncertificated form) or by cheque (in the case of shares held in certificated form) by 31 January, 2012.

The Redemption is being effected pro rata to holdings of shares on the register at the close of business on 23 January, 2012 (the "Redemption Date"). Based on the Company's NAV per share as at 30 December, 2011 (being 82 pence), approximately 24.8 per cent. of the Company's issued share capital (that is 24.8 shares for every 100 held (the "Redemption Ratio")) will be redeemed on the Redemption Date. Fractions of shares produced by the Redemption Ratio will not be redeemed and so the number of shares to be redeemed for each shareholder will be rounded down to the nearest whole number of shares. The Redemption is equivalent to approximately 20.33 pence per share.

The Redemption amount comprises monies from the realisation of the Company's investments pursuant to the managed wind-down of the Company, less the costs and expenses of this Redemption and cash being retained for the Company's working capital requirements. The costs and expenses of this Redemption are estimated not to exceed £5,000.

Prior to the Redemption the Company had 22,132,580 shares in issue. All of the shares redeemed on the Redemption Date will be cancelled.

The shares will be disabled in CREST on the Redemption Date and the existing ISIN number GG00B4K46K11 (the "Old ISIN") will expire. The new ISIN number GG00B7869679 (the "New ISIN") in respect of the remaining shares which have not been redeemed will be enabled and available for transactions from and including 24 January, 2012. CREST will automatically transfer any open transactions as at the Redemption Date to the New ISIN.

Enquiries:

Chris Brierley 020 7968 6136

(Financial Risk Management Limited)

Jane Lewis 020 3100 0295

(Winterflood Investment Trusts)