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)

21st May 2008

TRANSACTION IN OWN SHARES

New Star Absolute Return Fund PCC Limited (the 'Company') announces that on 21st May 2008 it purchased the number of shares at the prices set out below; the resulting share capital per class is also set out in the table below 

All Growth Shares and Income Shares repurchased as at 21st May 2008 will be cancelled. This brings the total number of Growth and Income Shares held in treasury to 704,000 and 800,000 respectively.

All shareholders have equal voting rights based on the number of shares held. Accordingly, the total number of voting rights in the Company is 17,768,821 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if 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.

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 Company for providing the protections afforded to its clients or for providing advice in relation to the contents of this announcement. 

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