COLUMBUS, Ohio (July 1, 2003) - The first half of 2003 was an extremely strong performance period for Prospero Capital and the Funds! Through June 30, all three funds are exceeding their targets for the year, with our core equity strategy gaining a net 23.4% versus only 11.8% for the S&P 500. Prospero's long/short Beaumont Fund also outperformed the market handily, producing net gains of 14.1%, while hedging approximately 50% of its exposure to the underlying equity markets. Finally, our market-neutral Curan Fund, which targets 1% per month in both bull and bear markets with no net market exposure, gained a net 6.5% for the six months, easily topping other equity market-neutral asset classes such as bonds and cash. For the month of June, all three funds had positive returns and our core equity strategy produced a net 3.4% gain versus only 1.3% for the S&P 500. Given Prospero's consistently strong performance during the last several years, please consider the following highlights when next evaluating your portfolio allocation: There is not a single quarterly entry point to any of Prospero's three funds since inception from which point an investor would have had a negative return through June 30, 2003. Our core equity product has experienced only one down year (2002) but has more than recovered those losses during the first half of 2003. While Prospero successfully achieved new highs in all three funds in June, the S&P 500 remains more than 36% below its peak levels achieved more than 3 years ago, while the NASDAQ is 68% below its peak in March, 2000. Prospero has produced positive net gains for its investors during the year-to-date/1/3/5-year and since inception time periods. Every $1 million invested in Prospero's core equity fund 5 years ago placed an investor $657,000 ahead of the S&P's return, itself a level exceeding the performance of many fund managers. Every $1 million invested in Prospero's core equity fund 3 years ago netted a $196,000 profit, while the S&P 500 declined 30%, representing a ($300,000) loss for every $1 million invested. That's a net difference of 49% between Prospero's cumulative return and the market during the last 36 months! Curan Fund has outperformed the S&P 500 by a net 26.5% since its inception (1/1/02) and produced positive absolute returns in both 2002 and 2003. While very few shorts have made money in 2003, they play an invaluable role in Prospero's risk management systems. Just as homeowners are happy to have house insurance during years when the insurance proves unnecessary, Prospero's short selling provides our investors with protection against market declines. While our research is focused on discovering shorts that will make money in any environment, it is universally accepted that shorting stocks is more likely to produce profits when markets are falling. Given that Prospero's expectations for the remainder of 2003 continue to be muted and our outlook cautious, we have been slowly deploying inflows of capital from new investors this quarter, deliberately keeping some powder dry for pullbacks after the recent, unsustainable market surges of the last few months. Prospero's long-term track record continues to substantially outperform the overall market. Our Antenor strategy has outperformed the S&P 500 during the last year-to-date/1/3/5-year periods and since inception, while the S&P has lost (11.2)% PER YEAR and the NASDAQ (25.5)% per annum for the three-year period ending June 30. In contrast, since its inception in 1997, Prospero's core equity strategy has produced double-digit net returns of 14.0% per annum through 6/30/03 in the face of challenging conditions for much of that time period. Capital preservation remains a constant focus of our portfolio management style. If you would like more information about Prospero's investment strategies or to inquire about becoming an investor, please call us toll-free at 866.377.7677. In the interim, we will be working hard on your behalf to produce consistent gains during the remainder of 2003 and beyond. Prospero Capital Management is an investment advisory company delivering superior financial results and service to clients through detailed fundamental research and investment insight. Contact Prospero at 866.377.7677 or invest@prosperofunds.com for more information.