Cheyne European Event Driven Fund Wins Best Event Driven Hedge Fund Category at the Hedge Funds Review European Performance Awards

LONDON, June 9, 2011 -

Cheyne Capital Management (UK) LLP ("Cheyne Capital") is
pleased to announce that its European Event Driven Fund (the "Fund") has won
the Best Event Driven Hedge Fund category at the 11th annual Hedge Funds
Review European Performance Awards.

The Hedge Funds Review European Performance Awards recognise
the top performing funds in various categories and are based on a methodology
ranking funds on their returns, Sharpe ratio and other metrics. The Cheyne
European Event Driven Fund achieved returns of +20.5% in 2010 and had a YTD
return of +4.3% at April 30, 2011, putting it into the lead position in its
category.

The Fund's unique hard catalyst event driven tactical approach
seeks to capture opportunities in both the equity and credit markets
generating significant returns using low levels of leverage. The Fund's
mandate is hard event driven with a focus on mergers and acquisitions. 75% of
the fund's portfolio is allocated across Europe and the remaining 25%
elsewhere. The Fund seeks opportunities in the liquid European equity and
credit spaces where a lack of other European based funds and proprietary
desks has reduced the competitive environment.

The team managing the Fund is composed of nine professionals,
led by Simon Davies and co-Manager Michel Massoud. This team is supported by
the risk processes, infrastructure and specialist teams within Cheyne
Capital, in particular its credit and convertible teams.

A second Cheyne Capital fund was also recognised at this
year's Hedge Funds Review European Performance Awards. Cheyne Capital's
Convertibles Absolute Return UCITS III (the "UCITS Fund") was shortlisted for
the Best Sub-$100 million UCITS product category. The UCITS Fund achieved
returns of +10.7% in 2010 and had a YTD performance of +4.7% at April 30,
2011.

Jonathan Lourie, founder and Chief Executive of Cheyne
Capital, said: 'The European Event Driven Fund's award is Cheyne's third
industry win in 2011, which, alongside the nine other industry award
nominations received this year, reflects Cheyne's depth of expertise and
success at managing innovative alternative investment strategies.'

Stuart Fiertz, co-founder and President of Cheyne Capital,
said: 'I am delighted that the European Event Driven Fund has been given this
award, which demonstrates the skill and hard work of the Event Driven team.
The Fund has consistently performed well since its launch in October 2009
thanks to its ability to identify the most attractive opportunities in liquid
event-driven situations.'

About Cheyne Capital

Cheyne Capital is one of Europe's leading alternative asset
managers. Having launched its first fund in 2000, Cheyne Capital AUM is now
$7.2 billion, which it manages across a diversified range of products. The
Cheyne group currently employs approximately 135 people with its primary
offices in London, New York, and Bermuda.

M:Communications, Kate Ruck Keene, Tel: +44-20-7920-2322, kate at mcomgroup.com; James Wallis, Tel: +44-20-7920-2329, Wallis at mcomgroup.com