New Star Absolute Return Fund PCC 
04 April 2008




                   NEW STAR ABSOLUTE RETURN FUND PCC LIMITED

  (A closed-ended investment company incorporated in Guernsey with registered
 number 45060 under the provisions of The Companies (Guernsey) Law 1994 to 1996
      and the Protected Cell Companies Ordinance 1997 to 1998, as amended)



4 April 2008

                              CONVERSION FACILITY


New Star Absolute Return Fund PCC Limited (the 'Company') announces that it has
received Conversion Requests and affected Share Conversions as set out below.


Class to be converted   Class to be                   Conversion        Shares to be        Shares to be
from                      conversed                        Ratio            Redeemed            Allotted
                                                           
Income Shares         Growth Shares                   0.93478869             753,118             704,005

Growth Shares         Income Shares                          N/A                 Nil                 Nil




The new Share capital as a result of the conversions is set out below.

                                       New Share capital

Income Shares                                  8,557,940

Growth Shares                                 12,147,881




The Conversion Date was 1 April 2008.

Following admission of the newly allotted shares to trading on AIM the Company's
total issued share capital will consist of 20,705,821 ordinary shares of no par
value.

An application will be made for the new Shares allotted pursuant to the Share
Conversions to be admitted to trading on AIM at 8.00 a.m. on 11 April 2008.


Expected Timetable

Unconditional dealings commence                                                8.00 a.m. on 11 April 2008

Expected date that CREST accounts will be debited / credited                                11 April 2008
pursuant to Share Conversions

Expected date that new Share certificates and any balancing Share                           11 April 2008
certificates will be despatched


Capitalised words in this announcement bear the meanings given to them in the
Company's articles of association.


Enquiries

Alison Bilham, HSBC Securities Services (Guernsey) Limited
Tel: + 44 (0)1481 707213


Susan Walker, KPMG Corporate Finance - nominated adviser
Tel: +44 (0) 20 7311 1000


KPMG Corporate Finance, a division of KPMG LLP which is authorised and regulated
by the Financial Services Authority for investment business activities, is
acting for the Company as nominated adviser in relation to the matters set out
in this announcement and is not acting for any other person in relation to these
matters. KPMG Corporate Finance will not be responsible to anyone other than the
Company for providing the protections afforded its clients or for providing
advice in relation to the contents of this announcement.




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