K2 Names Citigroup Japan’s James A. Rice Managing Director And Head Of Firm’S International Group

Stamford, CT, and Tokyo, Japan, October 30, 2006 – K2 Advisors, L.L.C. (“K2”), a $5 billion Connecticut-based fund-of-hedge-funds announced today that James (“Jim”) A. Rice has joined the firm as Managing Director and Head of the International Group. He is also a member of the firm’s Management Committee.

Prior to joining K2, Jim Rice served as Managing Director and Chief Auditor, Audit and Risk Review for Citigroup Japan from April 2005 to October 2006. In 2004 Mr. Rice founded the Asia/Pacific office of the Promontory Financial Group, a regulatory consulting group advising financial institutions on sound corporate governance practices. Prior to Promontory he served as Director of the Asia/Pacific and European Divisions of the New York State Banking Department from 1998 to 2004.

In addition, Mr. Rice was formerly President and Director of Aubrey G. Lanston and Tokai Securities, Inc., both New York based securities companies. Aubrey G. Lanston became the first non-U.S. primary dealer in U.S. Government securities. He began his career at Trust Company of Georgia and later worked at Donaldson Lufkin and Jenrette in New York. He was an executive member of the Primary Dealers Committee of the Public Securities Association. He holds a BA in Business Administration from Southwest Missouri State University.

K2’s co-founder, David C. Saunders, said, “Jim brings a wealth of experience and will be a valuable addition to the team. The hiring of Jim highlights our ongoing commitment to being a leader among institutional quality fund-of-hedge-funds.”

Jim Rice will work primarily out of K2’s Tokyo office. While his responsibilities will be global, Jim sees particular demand in advising clients as they expand their alternative asset allocations globally “With the rapid and sustained growth of almost 6 percent annually in the region there is an almost urgent need for appropriate investment vehicles to manage this wealth”, said Mr. Rice.

K2’s co-founder, William (“Doug”) A. Douglass III said, “Jim has extensive experience in corporate governance and best practices in the financial services industry. We believe these areas are going to be critically important to investors as the alternative asset industry matures. In addition, Jim’s background in the securities business, his international prominence and, particularly, his Asian experience, will be invaluable to our clients and guide our global expansion.”

About K2 Advisors, L.L.C.:

K2 is a fund-of-hedge-fund with over $ 5 billion under management serving both institutional and private investors globally. The firm’s diversified portfolios are designed to meet institutional investors’ alternative asset class requirements for capital preservation, absolute returns and low correlation to traditional asset classes. K2’s 58 professionals are comprised of former analysts, traders and risk managers from hedge funds, investment banks and asset managers. The firm was co-founded by William A. Douglass III and David C. Saunders in 1994 and maintains offices in New York, Connecticut, London and Tokyo. K2 is a Registered Investment Adviser with the Securities and Exchange Commission in the U.S.