Tetragon Financial Group Limited (TFG) Announcement

LONDON, February 23, 2011 - On 22 February 2011, Tetragon Financial Group Limited,
Tetragon Financial Group Master Fund Limited (together, "TFG") and TFG's six
directors were served with proceedings in the Royal Court of Guernsey (the
"Proceedings") instigated by one of TFG's former directors, Alexander
Jackson. Mr. Jackson was given notice to vacate office as a director on 24
January 2011.

By the Proceedings, Mr. Jackson seeks to impugn TFG's decision
of 29 July 2010, announced on 2 August 2010, to enter into a joint venture
with GreenOak Real Estate (the "GreenOak Transaction"). The Proceedings are
confined to claims for damages and other relief against TFG's directors, and
do not seek to reverse or interfere with the GreenOak Transaction, which was
implemented in the third quarter of 2010.

TFG and its directors believe that there is no merit
whatsoever in the Proceedings and will take all necessary steps to ensure the
Proceedings are dismissed as quickly as possible.

TFG's investment manager, Tetragon Financial Management LP,
has concluded that it is untenable for Mr. Jackson to continue in his current
role as a consultant with respect to investment and risk matters relating to
TFG and, therefore, is taking steps to ensure that he will no longer continue
in that capacity, although he remains a shareholder of TFG's investment
manager.

About Tetragon:

Tetragon Financial Group Limited (TFG) is a Guernsey
closed-ended investment company traded on Euronext Amsterdam by NYSE Euronext
under the ticker symbol "TFG" that currently invests primarily through
long-term funding vehicles such as collateralized loan obligations in
selected securitized asset classes and aims to provide stable returns to
investors across various interest rate and credit cycles.

This release does not contain or constitute an offer to sell
or a solicitation of an offer to purchase securities in the United States or
any other jurisdiction. The securities of TFG have not been and will not be
registered under the US Securities Act of 1933 (the "Securities Act"), as
amended, and may not be offered or sold in the United States or to US persons
unless they are registered under applicable law or exempt from registration.
TFG does not intend to register any portion of its securities in the United
States or to conduct a public offer of securities in the United States. In
addition, TFG has not been and will not be registered under the US Investment
Company Act of 1940, and investors will not be entitled to the benefits of
such Act. TFG is registered in the public register of the Netherlands
Authority for the Financial Markets under Section 1:107 of the Financial
Markets Supervision Act ("FMSA") as a collective investment scheme from a
designated country. This release constitutes regulated information
("gereglementeerde informatie") within the meaning of Section 1:1 of the
FMSA.

    For further information, please contact:
    TFG:

    David Wishnow/Yuko Thomas
    Investor Relations
    ir@tetragoninv.com

    Press Inquiries:
    Brunswick Group
    Jonathan Glass/Pip Green
    polygon@brunswickgroup.com
    +44-20-7404-5959

PRN NLD

David Wishnow/Yuko Thomas, Investor Relations, ir at tetragoninv.com Press Inquiries: Brunswick Group, Jonathan Glass/Pip Green, polygon at brunswickgroup.com +44-20-7404-5959