MARCH 1, 2007 – GRAND CAYMAN AND GENEVA – Balaton Group Inc. today announced the launch of The Watershed Fund, a special-situation and turnaround fund focused on the underserved small and micro cap segment of the marketplace. Balaton has initiated capital raising efforts for the $50 million fund in both Canada and Europe with a first round closing target in Q3 2007.

The Fund will focus on a strategy of investing in small and undervalued companies with either established or emerging business models that have potential to be industry leaders and agents of change. The Fund’s leaders are experts widely recognized in financial circles for identifying and remedying problem areas and capitalizing on the existing strengths of ailing companies.

Robert Kubbernus, CEO of Balaton Group, explains, “We know that investing in undervalued companies at the lowest possible cost base and aligning ourselves with gifted business leaders who share our values, leads to thriving and successful investment returns. Our aim is to provide stakeholders with the opportunity to invest in a variety of high potential companies, in sectors ranging from Energy, Natural Resources and Technology, to Media and Biomedical.”

Mr. Kubbernus, a leader in special-situations and turnarounds for the past 20 years with a proven track record in Europe, the United States and Canada, added, “The Fund seeks to provide its shareholders with superior and sustainable returns combined with effective risk management.  The asset allocation of the fund will be primarily centered on publicly traded companie; the Portfolio Advisor intends to follow a flexible approach in order to place the Fund in the best position to capitalize on opportunities in the financial markets. The Fund’s Portfolio Advisor may also take advantage of opportunities in other asset classes if they meet the Portfolio Advisor’s standards of investment criteria.”

The Fund’s Advisory Board is comprised of Bill Hutchison, former global chairman of Telecom & Technology for Ernst & Young, who has more than 30 years of knowledge and experience and delivers tremendous depth in restructuring practices; Robert Mendel, a specialist in derivatives trading with over 16 years of investment industry experience; Brogan Taylor, a valuation and investment analyst with expertise in analyzing mergers and acquisitions; and Olivier Couriol, former manager of Credit Suisse's Middle East clientele, and financial advisor to the private office of a member of the royal family of the United Arab Emirates. TheWatershedFund.com