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

For the month of October, 34 of the Trust's 38 managers posted positivereturns, while all 12 market-neutral strategies included within the Trust'sportfolio added to the bottom line. Specifically, the Trust's distressedsecurities managers, in aggregate, were the largest positive contributors tothe return of the Trust for the month.

Subject to limits set out in the Trust's prospectus, the Trust isrequired to purchase its units, up to a maximum of 2% each quarter, in themarket in the event that the market price falls below 92.5% of the net assetvalue of the Trust. The Trust also makes purchases of its units pursuant to anormal course issuer bid. The Trust purchased 93,500 units under theseprograms during the month.

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

For further information

Mohamed Khaki or Stephen Foote at NorthwaterCapital Management Inc. at (416) 360-5435