FCAP.L Regulatory News (FCAP)

FRM Credit Alpha Limited

(the "Company")

Update re. 2nd compulsory partial redemption of shares

Further to the Company's announcement dated 14 July 2011, the Company wishes to provide further details of its second cash distribution to shareholders. Approximately £8,003,806 will be 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 30 June 2011. The Company's NAV per share as at 30 June 2011 was 88.9 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 29 July 2011. Certificated shareholders are reminded that they must send all of their share certificates to the Company's Registrar in order to receive their Redemption monies.

The Redemption will be effected pro rata to holdings of shares on the register at the close of business on 22 July 2011 (the "Redemption Date"). Based on the Company's NAV per share as at 30 June2011 (being 88.9 pence), 28.916 per cent. of the Company's issued share capital (that is 28.916 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 25.69 pence per share.

The Redemption amount comprises the monies from the realisation of the Company's investments received up to and including 13 July 2011 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.

The Company currently has 31,135,738 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 GG00B3ZPG020 (the "Old ISIN") will expire. The new ISIN number GG00B4K46K11 (the "New ISIN") in respect of the remaining shares which have not been redeemed will be enabled and available for transactions from and including 25 July 2011. Up to and including the Redemption Date, shares will be traded under the Old ISIN and as such, a purchaser of such shares may have a market claim for a proportion of the Redemption proceeds following the activation of the New ISIN. 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)