HedgeCo.net ( New York ) – – Key Asset Management is delighted to announce that Key Recovery Fund has won ‘best performing single strategy specialist fund of funds under €200m’ in the MARHedge Annual European Performance Awards 2006. The fund invests in Event Driven hedge funds, including Distressed.

This is the second year in which the fund has been formally recognised for its performance. The fund was awarded ‘best performing specialist fund of funds over 3 years on a risk adjusted basis’ in Hedge Fund Review’s 4th Annual European Fund of Hedge Fund Awards 2005.

Key’s Event Driven specialist, Emily Porter, says: “In the short term, corporate activity looks like it will continue to show strength and hence drive equity-related Event Driven performance. Furthermore, opportunities and therefore returns for Distressed Debt strategies are expected to grow in the medium term as a result of an increasing default rate, driven by higher issuance and leverage of the last few years.”

Chris Jones, Chief Investment Officer, says: “The fund continues to achieve its target high return across a range of market conditions with low correlation to traditional equity and bond markets and we are very pleased that this is being recognised by the marketplace.”

Key Asset Management, a pioneer in the European hedge fund industry, was founded in 1989 by Morten H. Kielland to evaluate and invest with hedge funds. Its first hedge fund, Key Hedge Fund, was launched in April 1990. Key has invested in hedge funds over the past 17 years with the objective of achieving high risk-adjusted rates of return and preservation of capital; an objective which has been achieved across a variety of market cycles.

With offices in London, Oslo, Geneva, Stockholm and New York, Key currently has approximately $1.5 billion in assets under management and advises a range of institutions, including pension plans and private investors.

For further information, please contact:

Zenobia-Ann Bajina, Marketing Manager, 020 7016 6220, zbajina@keyhedge.com

Simon Ewart, Chief Executive, KAM Group, 020 7016 6200, sewart@keyhedge.