Anchorage Capital Partners Ltd. (a Mercantile Investment Group Company) Announces a New Initiative for the Music Industry and the Musical Instrument Industry

Anchorage Capital Partners Ltd. (a Mercantile Investment Group Company) Announces a New Initiative for the Music Industry and the Musical Instrument Industry

LONDON, January 9/PRNewswire/ -- Anchorage Capital Partners ("ACP") announced today a new
strategy to accommodate companies in the fast changing landscape of the music
industry. "ACP is now positioned as a One-Stop-Shop for companies in the
music arena who want to take advantage of the fast paced changes shaping
their industry, such as the consolidation taking place in certain sectors
like musical instrument manufacturing and retailing," Said Tommy Byrne, ACP
Co-Founder and CIO of The Guitar Fund. ACP has structured their new
initiative to include in-house consulting and corporate finance advising,
combined with in-house cross-border legal advice. "Essentially, we are
offering expertise to the music industry on three fronts," said David Noble,
who joined The Guitar Fund's management team last year, after leaving 3i
Private Equity as the Partner in charge of Media. Mr. Noble went on to say,
"To have an in-house M&A lawyer with specific expertise in securitization of
intellectual property and corporate finance deal structuring, really brought
our strategy together, allowing us to be extremely competitive."

ACP is currently acting as Adviser to Kerchoonz.com, a
DRM-free music downloading and social networking site which legally delivers
free music through an advertising driven model. "ACP has been extremely
helpful and innovative in our first two rounds of capital raising and we look
forward to continuing to grow with their help," said Kerchoonz Co-Founder Ian
Morrow.

Mr. Byrne and Mr. Noble each have professional experience with
musical instrument manufacturing and retailing, including on-line
distribution. The Company's advisory board boasts a number of very successful
musicians and recording industry executives who lend industry insight and
help deliver new business engagements. One of which, Robbin Thompson, once
the lead singer of the Bruce Springsteen band, SteelMill and Co-Founder of In
Your Ear Music, said "Given ACP's experience in this sector combined with the
turbulence being experienced in the music industry and in the credit markets
in general, I think ACP's skills and talents will sit very well with CEOs of
music companies who are trying to manoeuvre their companies competitively."

ABOUT The Guitar Fund - ACP has structured and will manage a
$100 million non-correlated investment fund investing in Vintage Guitars.
This new asset class has delivered an average annual return of 27.7% over the
past 18 years.

Contact Tommy Byrne for more information:
Tommy Byrne,
Phone - +44-20-7355-6990,
tbyrne@anchorage-capital.com .

Source: Anchorage Capital Partners Ltd

Contact Tommy Byrne for more information: Tommy Byrne, Phone - +44-20-7355-6990, tbyrne@anchorage-capital.com .

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