Proposed Fund Raising

FRM Credit Alpha Limited
22 October 2007


This communication is not for release, publication or distribution in or into
the United States, Canada, Japan or Australia.


This communication is an advertisement within the meaning of the prospectus
rules of the Financial Services Authority and not a prospectus. No offer to buy
or a solicitation of an offer to buy any securities in the company is being made
by this communication, in the United States or in any other jurisdiction.


FRM Credit Alpha Limited (the 'Company')


Proposed fund raising


Further to the Company's announcement on 5 October 2007, FRM Credit Alpha
Limited announces that it intends to proceed with a placing of new shares. A
prospectus in connection with the placing is expected to be released on or about
2 November 2007.


The Company seeks to generate significant returns over cash with low volatility
and low beta to global credit markets when measured over a market cycle. The
Company's portfolio comprises between 12 to 20 'specialist credit' hedge funds,
which utilise fundamental research, asset allocation, security selection and
activism to invest in credit securities, as opposed to investing according to
macro views on interest rate movements or spreads. The Company has returned 8.9%
from its launch on 1 April 2007 through to 30 September 2007, compared to an
increase of 0.86% for the ML US High Yield Master II Index (GBP) for the same
period.


The Company is listed on the Irish Stock Exchange and its shares are available
to trade on the London Stock Exchange's International Bulletin Board.


The minimum subscription amount under the placing is £50,000 (in the case of
subscriptions for new Sterling shares), €75,000 (in the case of subscriptions
for Euro shares) or US$100,000 (in the case of subscriptions for Dollar shares).


The expected timetable is as follows:

                                                       2007
Prospectus published                                   02 November
Issue Price of New Sterling Shares announced           20 November
Latest time and date for commitments under the Placing 5.00 p.m. on 21 November
Dealings in New Shares commence                        8.00 a.m. on 27 November


The investment portfolio and general deployment of assets of the Company are
managed by FRM Investment Management Limited. Investment advice is provided by
Financial Risk Management Limited. Both FRM Investment Management Limited and
Financial Risk Management Limited are part of the FRM Group which was founded in
1991 and has over US $13 billion in funds of hedge funds assets under management
and over 200 employees in offices in London, New York, Tokyo, Sydney and
Guernsey.


Additional information on the Company is available at www.frmcredit.com.


Enquiries:


Tina Hugo/Luke Burdess, Financial Risk Management 020 7968 6000

Chris Gook, Winterflood Investment Trusts 020 3100 0256

Roland Cross/Sally Moore, Broadgate 020 7776 0508



This communication is an advertisement within the meaning of the prospectus
rules of the Financial Services Authority and not a prospectus. No offer to buy
or a solicitation of an offer to buy any securities in the company is being made
by this communication, in the United States or in any other jurisdiction.


This communication has been approved and issued solely for distribution in the
UK for the purposes of section 21 of the Financial Services and Markets Act 2000
by Financial Risk Management Limited which is authorised and regulated by the
Financial Services Authority and whose office is at 15 Adam Street, London WC2N
6AH.

The issuer has not been and will not be registered under the US Investment
Company Act of 1940, as amended (the 'Investment Company Act'). In addition, the
shares have not been and will not be registered under the US Securities Act of
1933, as amended (the 'Securities Act'). Consequently, the shares may not be
offered, sold or otherwise transferred within the United States or to, or for
the account or benefit of, US persons except in accordance with the Securities
Act or an exemption there from and under circumstances which will not require
the issuer to register under the Investment Company Act. No offering of the
shares will be made in the United States.

Neither this document nor anything contained herein shall form the basis of, or
be relied upon in connection with, any offer or commitment whatsoever in any
jurisdiction. Any offer to acquire securities pursuant to the proposed offering
will be made, and any investor should make his investment, solely on the basis
of information that will be contained in a prospectus to be made generally
available in Ireland in connection with such offering. When made generally
available (which is currently expected to be in November 2007), copies of such
prospectus may be obtained at no cost from FRM, through the website of the Irish
Financial Services Authority or the website of the issuer.

This communication is directed only at (i) persons outside the United Kingdom,
or (ii) persons having professional experience in matters relating to
investments who fall within the definition of 'investment professionals' in
Article 19(5) of the Financial Services and Markets Act 2000 (Financial
Promotion) Order 2005 (the 'Order') or (iii) high net worth companies,
unincorporated associations and partnerships and trustees of high value trusts
as described in Article 49(2) (a) to (d) of the Order. Persons within the United
Kingdom who receive this communication (other than persons falling within (ii)
and (iii) above) should not rely on or act upon this communication.








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