Northwater Five-Year Market-Neutral Trust - Final net asset value - October 31,

The Trust, through a forward purchase and sale agreement, has exposure toapproximately 150% of a portfolio of market-neutral hedge funds held byNorthwater Five-Year Market-Neutral Fund Limited (the "Fund"). For the monthof October, 33 of the Fund's 38 managers posted positive returns. All 12market-neutral strategies included within the Fund's portfolio contributedpositively to the bottom line. Specifically, the Fund's statistical arbitragemanagers, in aggregate, were the largest contributors to the estimated returnof the Trust for the month.

The Fund's exposure to a fixed interest rate swap increased the Trust'sreturn as the interest rate environment was favourable to the Trust over theperiod.

Subject to limits set out in the Trust's prospectus, the Trust isrequired to purchase its units in the market in the event that the marketprice of a unit of the Trust falls below 95% of the net asset value of theTrust per unit. For the month of October, the Trust purchased 65,800 unitsunder this program.

The Northwater Five-Year Market-Neutral Trust is a well-diversified fundof market-neutral hedge funds. Units are listed on The Toronto Stock Exchangeunder the symbol NYF.UN.

For further information

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