Redwood Asset Management Inc.

Redwood Asset Management Inc.

October 25, 2006 10:30 ET

Securities Authorities Grant Redwood Prospectus Funds Authorization to Short up to 20% of Net Asset Value

TORONTO, ONTARIO--(CCNMatthews - Oct. 25, 2006) - Redwood Asset Management is pleased to announce that the Canadian securities regulatory authorities have granted both of Redwood's prospectus funds with an additional 10% shorting capability. Each of Redwood Diversified Equity Fund (RAM 201) and Redwood Diversified Income Fund (RAM 202) now has the ability to take on short positions up to a maximum of 20% of its total net assets.

"It is a fantastic privilege for Redwood Asset Management to receive this additional risk management tool" said Jonathan Clapham, President and CEO of Redwood Asset Management.

The Redwood Diversified Equity and Redwood Diversified Income Funds are available by way of prospectus and offer clients a strong alternative to long only exposed equity and income mutual funds.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing.

About Redwood Asset Management

Redwood Asset Management Inc. is a Toronto based manager of investment funds that use unique Absolute Return investment strategies. Redwood funds that are offered privately target high net worth investors (ie. investors in the high income/high net worth individual and institutional investor categories). Our funds' primary goal is to preserve capital and provide consistent positive annual returns while avoiding large fluctuations. Redwood's third party portfolio managers strive to achieve positive returns for our funds' investors every month - even after deduction of fees. The key to the outstanding performance of Redwood funds is our selection of experienced and superior portfolio managers with demonstrated track records.

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