LONDON & CAPITAL APPOINTS AMERICAN STOCK EXCHANGE AS CALCULATION AGENT FOR THE MARKETGRADER ENHANCED INDICES

London - 25 October 2006

‘London & Capital Index Services’ Launched to Support Extended Product Suite

London & Capital, a boutique, UK-based asset manager, today announced its appointment of the American Stock Exchange (Amex) as exclusive calculation agent for the MarketGrader Indices, beginning with MarketGrader 40 Index, one of the first merit-based equity indices available in the UK. Amex’s appointment, which came into effect on 18 October 2006, comes as the asset manager launches its ‘London & Capital Index Services’ in preparation for an extended suite of MarketGrader investment products.

The partnership with Amex, a leading publisher of customised index benchmarks and structured products and specialists in the trading of Exchange Traded Funds (ETFs), makes available real-time pricing to MarketGrader 40 Index investors for ongoing portfolio valuation. MarketGrader 40 Index investors will be able to value their portfolio every 15 seconds via leading data vendors, including Reuters and Bloomberg (Ticker: MGFTY), and online financial portals. The access to real-time market data will keep investors better informed of market movements so they may swiftly identify opportunities.

Daniel Freedman, Joint Managing Director, London & Capital, comments: “This alliance broadens the appeal of MarketGrader as we prepare to launch an extended family of investment products based upon the index. The real-time publication of MarketGrader data will give investors greater insight into their portfolios and will facilitate the expansion of the MarketGrader product offering.”

MarketGrader is one of the first merit-based North American equity indices available in the UK. Unlike standard indices, which evaluate stocks based on fixed parameters such as market capitalisation, MarketGrader uses algorithms to apply four quantitative filters (growth, value, profitability and cash flow) to analyse more than 5,700 North American stocks and adjust its holdings accordingly. The index, rebalanced quarterly in line with the submission of company results, is entirely computer driven and free from human intervention. London & Capital currently offers the MarketGrader 40 Index and will launch the MarketGrader 100 and 200, as indices and ETFs, during Q1 2007. MarketGrader 40 will also be launched as an ETF.

London & Capital, which has over USD2 billion under management, has offered institutional clients access to the MarketGrader Index via a European medium-term Note since February 2005. The company launched a Fund in November 2005, opening up the index to high net worth investors.

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