FCAP.L Regulatory News (FCAP)

FRM Credit Alpha Limited (the 'Company')

Company update

Following the Company's AGM on 24 November at which the continuation of the Company was not approved, the Board has consulted further with shareholders regarding options for winding up, reorganising or restructuring the Company.

As a result of these consultations the Board is removing the Company's currency hedge with effect from its maturity date on 30 December 2010, and is proposing the following:

·; that the Company proceed with a managed wind-down of its investment activities;

·; that the Company's listing be maintained for as long as is practicable during the wind-down period; and

·; that an initial return of capital be made to shareholders during the first half of 2011.

Both the change in investment policy and the return of capital will be subject to shareholder approval. A circular will be sent to shareholders setting out further information relating to the Board's proposals in early 2011.

Enquiries:

Chris Brierley/Luke Burdess

Financial Risk Management Limited

020 7968 6136/ 6208

Jane Lewis

Winterflood Investment Trusts

020 3100 0295