FOR IMMEDIATE RELEASE


PEREGRINE FINANCIAL GROUP ENTERS MANAGED FUNDS MARKET WITH $50 MILLION OFFERING

ALLIANCE WITH TRADER SOURCE, INC. ANNOUNCED


CHICAGO, February 25, 2003 – Peregrine Financial Group, Inc. (PFG) announced today the implementation of a strategic plan to aggressively move into the managed funds market through significant alliances, fund development and corporate commitment.

PFG and Trader Source, Inc. (TSI) have signed a strategic alliance to accomplish two major objectives:

1. Expand TSI’s existing methodologies to identify and develop quality emerging managers
2. Develop and distribute a portfolio of products that are ideal for both the institutional and retail markets. These products will range from single manager products to well-diversified fund of hedge fund portfolios.

TSI, a registered Commodity Pool Operator and Commodity Trading Advisor, has a well-established track record of identifying emerging CTAs (those with less than $10 Million under management) and providing exposure for them to increase their assets under management.

As the first venture in this joint alliance, TSI and PFG anticipate an April 1st launch of Secret Harbor Multi-Manager Fund, Ltd., a British Virgin Islands-based fund available to offshore investors. The Fund will allocate its assets to CTAs and interbank traders and targets returns of 15-20% per annum with no correlation to hedge funds or domestic equity markets.

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Russell Wasendorf, Sr., PFG Chairman and CEO said, “The Managed Fund and structured products market is an extremely important new strategic direction for PFG. We believe PFG is in a unique position to provide these services and products and will help provide the needed education and marketing for the industry.”

Neil J. Aslin, PFG President, said, “Our alliance with TraderSource will allow us to focus on our strengths while diversifying our products and services. With the PFG/TSI alliance we will nurture these products and the CTAs who will provide the trading backbone. We are very excited to become part of this extremely important and growing segment of the futures and securities markets.”

David Welch, TraderSource Inc, President and CEO, “The association with PFG gives TraderSource an increased ability to distribute quality, institutional-type alternative investments to retail investors, whose needs to date have been largely unaddressed. We believe our strengths in identifying and developing quality alternative managers, particularly in the CTA area, coupled with PFG’s distribution strengths should fill a significant void in the marketplace. The CTA world has been largely neglected by major institutions, which have focused their sights on the larger hedge fund class without recognizing that many of the premier closed hedge funds started out as CTAs. The strategic alliance with PFG should help fill this void.”

Peregrine Financial Group, Inc. is a highly respected multi-product broker and leader in global derivatives and alternative investment markets. Over the years, PFG has earned a reputation as one of the finest providers of quality educational platforms for the individual investor. PFG offers a full spectrum of investment services designed to meet the broad range of needs in today's challenging financial environment.

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