Northwater Market-Neutral Trust - Final Net Asset Value - August 31, 2007



    TORONTO, SEPT. 24 /CNW/ - The Northwater Market-Neutral Trust (the
"Trust") announced today that the net asset value ("NAV") of the Trust per
unit as at August 31, 2007 is $13.88. The NAV reflects a return of -3.30% for
the month of August. The rolling 12-month return for the Trust is
approximately 6.16%. The Trust also announced today that it has declared a
regular quarterly distribution to be payable to unitholders of record on
September 30, 2007 in the amount of $0.28 per unit. This distribution is
expected to be paid on October 29, 2007.
    The decline in the net asset value of the Trust in the month of August
was consistent with the experience of many hedge fund investors and was due
largely to the dramatic market movements experienced throughout the month. The
losses experienced in August occurred in a wide variety of strategies in which
the Trust is invested. The main contributor was the Trust's exposure to
statistical arbitrage, which was confounded by the month's market movements.
    For the month of August, 12 of the Trust's 38 managers posted positive
returns, while one of the 12 market-neutral strategies included within the
Trust's portfolio added to the bottom line. The Trust's reinsurance managers,
in aggregate, had a positive contribution to the estimated return of the Trust
for the month.
    The Trust relies on estimates provided by administrators of each of the
Trust's underlying hedge funds. Occasionally, these estimates may be revised
and the Trust will be required to capture these revisions in subsequent net
asset value calculations. The reported net asset value of the Trust is also
affected by the finalization of the net asset value by the administrators of
the underlying hedge funds.
    Subject to limits set out in the Trust's prospectus, the Trust is
required to purchase its units in the market in the event that the market
price falls below 92.5% of the net asset value of the Trust. The Trust also
makes purchases of its units pursuant to a normal course issuer bid. For the
month of August, the Trust purchased 95,400 units under this program.

    The Northwater Market-Neutral Trust is a well-diversified fund of
market-neutral hedge funds. Units are listed on The Toronto Stock Exchange
under the symbol NMN.UN.





For further information:

For further information: Mohamed Khaki or Stephen Foote at Northwater
Capital Management Inc. at (416) 360-5435

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Northwater Market-Neutral Trust

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