ACMH launches German Retail Hedge Fund Product

("ACMH" or "the company")

Absolute Capital Management Holdings Limited, the investment management Group focused on delivering investment returns through the management of absolute return funds, is pleased to announce the launch of a German retail hedge fund product for both private and institutional investors called The Absolute Diversified Certificate through SEB (Frankfurt: 862948 - news) bank in Germany.

The Absolute Diversified Certificate was launched on 28 August and is designed to enable private investors to participate in the absolute return funds managed by ACMH with a minimum investment level of €5,000. The fund is also open to institutional investors with a minimum investment level of €250,000. The Absolute Diversified Certificate is issued by the Scandinavian Bank SEB, which is listed on the Stockholm Stock Exchange and is one of the largest Nordic banks capitalised at approximately €15bn.

The Absolute Diversified Certificate is aiming to attract €100 million from private and institutional investors. The product has been created to deliver absolute returns for risk conscious investors and has a 40 day notice period from the month end ensuring good liquidity.

ACMH manages 8 funds, two of which were launched on 1 July 2006; The Absolute India Fund and The Absolute Activist Value Fund. The table below shows the performance to 30 June 2006 of 6 of the managed funds.

Sean Ewing, Chairman and CEO of ACMH added;

"Today's announcement represents our first move into the retail space enabling investors to access our funds at a reasonable entry level. We believe there is significant scope to develop our presence in this market and we are actively considering similar retail products for other markets,"

For further information please contact:

Media Enquiries

Tim Robertson, Cardew Group + 44 207 930 0777

+ 44 7900 927 650

tim.robertson@cardewgroup.com

Investor Enquiries

Ross Thompson +41 44 286 9010

ross@abcapman.com

Notes to Editors

About Absolute Capital Management Holdings Limited

Absolute Capital Management Holdings Limited is a specialist fund management company focused on delivering investment returns through the management of absolute return funds, launched in 2001. The company has offices in Spain, Germany, Switzerland, United Kingdom and Cayman Islands. The group manages 8 funds and has over $1.2 bn under management.

§ 21 August 2006: the company announced its interim results for the period to 30 June 2006 with assets under management up 125% since 30 June 2005, and up 46% since 1 January 2006. ACMH also reported that Pre-tax profit was up 142% (compared to 6 months to 30 June 2005)

§ 1 July 2006: launched the Absolute Activist Value Fund which seeks to raise up to €1 billion and primarily invests in European companies where pro-active measures unlock significant shareholder value

§ 1 July 2006: launched the Absolute India Fund with ASK Raymond James Securities India Private Limited to deliver superior absolute returns in a geographic area of huge opportunity

§ 20 June 2006: the company acquired TCA Group Ltd as part of a strategic move to enter the Capital Introduction and Fund Distribution arena and create opportunities to add significant new funds and find other emerging and talented managers

§ June 2006: joint-winner of Best Hedge Fund Group at Hedge Funds Review's 2006 European Performance Award ceremony

§ 3 March 2006: ACMH listed on the UK AIM

§ February 2006: ACMH launched the Absolute Large Cap fund to provide investors with exposure to highly liquid larger capitalised stocks throughout the globe

ACMH Investment Achievements -

No. 1 Best Hedge Fund Group, 2006 - Hedge Funds Review

No. 1 European Event Driven Fund, 2005 - Eurohedge

No. 1 Risk Adjusted Long/Short Fund 2005 - Barclay Group

No. 1 European Long Short Fund, 2002 - HFI

No. 1 Germany Fund over 1, 2 and 3 years, 2004 - Micropal