Northern Rivers temporarily restricts redemption provisions in Innovation mandate

    TORONTO, Jan. 23 /CNW/ - Northern Rivers Capital Management Inc.
("Northern Rivers") announces the temporary suspension of redemptions from the
Northern Rivers Innovation Fund LP (the "Fund") for a period of up to two
years, effective immediately. The Fund will satisfy all redemption requests
received prior to 4:00 p.m. eastern standard time on January 23, 2009.
Northern Rivers takes this important step in order to protect the capital of
all limited partners in the Fund and to enable the realization of value that
we believe exists in the portfolio.
    Northern Rivers has not suspended redemptions in the Northern Rivers
Innovation RSP Fund ("RSP Fund"), but may exercise the option under the RSP
Fund's Trust Indenture to settle any redemption requests in kind.
    The Innovation mandate invests in small cap and private securities which
are, by nature, illiquid. Market forces over the last year have put these
holdings under pressure and raised the percentage of illiquid assets in the
portfolios beyond normal levels. In Northern Rivers' judgment, permitting
continued cash redemptions at this time could necessitate forced selling of
securities by the manager at levels far below their expected longer term value
which would be to the detriment of the funds generally. In the case of private
securities, the impact of forced selling on existing unitholders is
particularly acute.
    Importantly, redemptions have not been a significant factor in the funds'
operations to date. Northern Rivers wishes to thank all unitholders for their
patience and continued confidence in the funds. Likrilyn Capital Corporation,
the majority shareholder of Northern Rivers and the largest unitholder in the
Northern Rivers Innovation Fund LP, also remains committed to the success of
the funds and to Northern Rivers Capital Management Inc.
    Northern Rivers is confident that the solid fundamentals of the funds'
holdings will be realized, the balance between public and private securities
will be normalized, and liquidity restored. Northern Rivers believes that a
time horizon of two years is sufficient for this to occur, at which time, or
before, normal redemption procedures will be reinstated.
    For more information on the funds' core holdings and the portfolio
manager's outlook and strategy please see the monthly letters written by the
funds' manager, Hugh Cleland, all of which are available on our website,
    The redemption process for all Northern Rivers' other open ended pooled
and mutual funds is not affected by this announcement due to the liquid nature
of their portfolios.

For further information:

For further information: Robyn Graham, Vice President, Sales &
Marketing, Northern Rivers Capital Management Inc., Phone: (416) 597-1226 ext.
1, or 1-866-902-7060 ext. 1

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