Northwater Market-Neutral Trust termination distribution and update on status of Wind-Up

    TORONTO, June 11 /CNW/ - The Northwater Market-Neutral Trust (the
"Trust") today is providing investors with a further update on the scheduled
termination of the Trust on December 31, 2009 (the "Termination Date") and the
expected special cash distributions ("Termination Distributions") to investors
scheduled to commence prior to the Termination Date on or about June 30, 2009.

    Termination Distribution

    As announced previously, the Trust expects that it will make an initial
Termination Distribution in addition to the regular quarterly distribution to
unitholders of record on June 30, 2009. The Termination Distribution and the
regular quarterly distribution are expected in aggregate to equal $3.29 per
unit, and will be paid on July 29, 2009.
    Northwater Capital Management Inc. (the "Manager") expects to firm up the
actual amount of the initial Termination Distribution on or about June 19th,

    Potential Tax Implications of Wind-Up and Loss of Qualified Registered
    Plan Status on June 30, 2009

    As previously announced in press releases released by the Manager since
January 2009, following the Termination Distribution, it is anticipated that
the percentage of certain illiquid holdings in relation to the Trust's assets
is likely to exceed the 10% concentration limits required in order for the
Trust to continue to qualify as a unit trust for Canadian income tax purposes.
    If and when the Trust fails to qualify as a unit trust it will no longer
qualify as a mutual fund trust for Canadian income tax purposes and the Trust
will no longer be a "qualified investment" for registered accounts, including
without limitation, RRIF's, RRSP's and RESP's. The Manager anticipates that
the Trust will lose its "qualified investment" status on or about June 30th,
2009. Investors are advised to speak with their advisors as soon as possible
to obtain tax advice regarding the anticipated failure of the Trust to
maintain its "qualified investment" status, and the appropriate movement of
any investment in the Trust out of registered accounts.
    Units of the Northwater Market-Neutral Trust are listed on The Toronto
Stock Exchange under the symbol NMN.UN.

For further information:

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

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Northwater Market-Neutral Trust

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