Northwater Market-Neutral Trust - Final Net Asset Value - November 30, 2007

    TORONTO, Dec. 21 /CNW/ - The Northwater Market-Neutral Trust announced
today that the return of the Trust for the month of November is estimated at
-0.90% resulting in a net asset value per unit of $13.77. The rolling 12-month
return for the Trust is estimated at 5.01%.
    The Trust previously announced that it had declared a distribution to be
payable to unitholders of record on December 31, 2007. This amount will
include the Trust's regular quarterly distribution and a special distribution.
The aggregate amount of the regular quarterly distribution and the special
distribution is expected to be approximately $2.50. The amount of the
distribution will include all of the Trust's net income and realized capital
gains, which the Trust is required to distribute so that the Trust will not be
liable to pay income tax under Part I of the Income Tax Act. The Trust cannot,
therefore, finalize the amount of the distribution declared until all of its
net income and realized capital gains for 2007 have been ascertained early in
2008. The final amount and the character of the distribution for tax purposes
will be determined in accordance with the trust agreement of the Trust and the
Income Tax Act. The amount of the special distribution is based upon
transactions that have occurred to date and will enable the Trust to pay out
all of its income and realized gains. The extent of this special distribution
is largely a result of foreign currency gains realized as a result of the
Trust's currency hedging program. The Trust's currency hedging program was
established at the Trust's inception to reduce the foreign currency risk
associated with the underlying hedge fund investments, which are denominated
in U.S. dollars. Unitholders will be notified of the full amount of the
distribution on or about January 22, 2008. The distribution is expected to be
paid on January 29, 2008.
    It is anticipated that a substantial portion of this distribution will be
income for tax purposes.
    For the month of November, 16 of the Trust's 38 managers posted positive
returns, while 4 of the 12 strategies included within the Trust's portfolio
added to the bottom line. Specifically, the Trust's asset-based securities
managers in aggregate were the largest contributors 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 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 net asset value. The Trust also makes purchases of
its units pursuant to a normal course issuer bid. For the month of November,
the Trust did not purchased units under this program.

    The Northwater Market-Neutral Trust is a diversified portfolio of
market-neutral hedge funds, the return of which is expected to be
substantially independent of the major bond and equity markets.
    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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