1. Commentary

February was a profitable month with accounts posting gains of around 1.5% after fees. We were pleased with the performance on two fronts. Firstly it was one of the first months where we had 3 systems firing simultaneously. Secondly the result was sound as we had underperformed for the first 3 weeks of the month, with intra-month losses of 1.5%. Given our risk levels automatically are paired back after losses, it was encouraging to have several systems post gains, giving us the firepower required to put clients comfortably in the black.

Foreign Exchange markets, along with the financial markets in general, are experiencing interesting times and showing behaviour that is quite unique over our data testing period. So it is encouraging the systems continue to perform, even if the magnitude of the performance is less than what we would hope. We continue to monitor a number of new systems in real time that aim to capitalise more fully on the current market behaviour.

For more information please visit our website: www.zonecapital.com.au

Results presented are after fees

2. Fund Performance

	Feb 08	Jan 08
% Return	1.3%	1.2%

3. Track Record* Update

Cumulative Performance

Summary Performance Statistics

	Since Jan 04
Cumulative % return	729%
Annualised % return	66%
Maximum Drawdown	18.7%
Sharpe Ratio	1.6
Sortino Ratio	6.0

*Track Record, as presented, is based on the trading account of FuturesTech Pty Ltd (an entity wholly owned by Malcolm Morley, a director of Zone Capital) for the period January 2004 – December 2006 and for the Zone Trading Trust 1 thereafter. The returns above are after deducting pro-forma fees, consisting of a 2% pa management fee plus a 25% high water marked performance fee. Zone Capital does not represent in any way that the past performance of the Track Record is any indication of likely future performance.

www.zonecapital.com.au