NorCap Diversified Premium

Fund, L.P.

Fund Investment Objectives

Diversified Premium Fund is an absolute return strategy intended to generate 10 - 20% plus returns net to the investor. The principal strategy is to identify and exploit inefficiencies in securities and other instruments while minimizing downside exposure and market risk through investment in other non-correlated investment strategies and other risk mitigation techniques. Two principal non-correlated investments are used. These include volatility arbitrage and a portfolio composed primarily of short duration (5 years or less) treasury/agency paper. The highwater mark for this fund resets every fiscal year. AUM is not disclosed.