1st July 2008

CANCELLATION OF TREASURY SHARES

KGR ABSOLUTE RETURN PCC LIMITED

KGR Absolute Return PCC Limited announces that it has today cancelled 50,000
redeemable participating preference shares of no par value in relation to the
cell KGR ASIA DYNAMIC 1 (GBP) that it previously held in Treasury, with
immediate effect..

Following the cancellation the issued share capital of the Company is
46,819,999 Redeemable Participating Preference Shares of no par value,

The Company now has 250,000 redeemable participating preference shares of no
par value in relation to the cell KGR ASIA DYNAMIC 1 (GBP) held in Treasury.
Accordingly the current issued share capital consists of 46,569,999 with voting
rights. Shareholders may use this figure as the denominator for the
calculations by which they determine whether they are required to notify their
interest in, or a change to their interest in the Company under the FSA's
Disclosure and Transparency Rules.

The board of KGR Absolute Return PCC Limited may reissue shares held in
Treasury at its discretion but intends to do so only at a price greater than
the estimated Net Asset Value. It also intends to continue its policy of
cancelling any shares held in Treasury for more than a year.

Kleinwort Benson (Channel Islands) Fund Services Limited

Company Secretary

01481 727111



END



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