C.A. Bancorp Inc. (TSX: BKP) Reports Q1-2008 Financial Results

Market Wire, May, 2008

C.A. Bancorp Inc. ("C.A. Bancorp" or the "Company") (TSX: BKP) reports its first quarter 2008 financial results.

During the first quarter of 2008, the Company:

- Formed C.A. Bancorp Canadian Realty Finance Corporation (CRFC), a mutual fund corporation that provides tax-efficient exposure to Canadian commercial real estate loans. CRFC's preferred shares trade on the TSX under the symbol RF.PR.A;

- Grew assets invested and under management to approximately $322 million from $292 million at year-end;

- Closed three private equity investments totaling approximately $10 million of invested capital;

- Reviewed over 40 private investment opportunities in both public and private companies pertaining to buy-out, re-financing and growth capital situations;

- Delivered another quarter of strong revenues, building upon the four consecutive quarters of revenue growth in 2007.

The Company is pleased to report that each of its private investments is performing at or above expectations. However, management is disappointed with the performance of the public portfolio in the first quarter and continues to take measures to address this by reducing the overall size of the portfolio, limiting its maximum exposure to any one position, and by remaining broadly diversified.

2008 first quarter financial highlights

The Company's consolidated financial results for the quarter ended March 31, 2008 are as follows:

- As of March 31, 2008, the Company's net book value per share was $2.82 (December 31, 2007 - $2.88) and the closing price on the TSX on March 31, 2008 (the last day of trading for the quarter) was $1.30 (December 31, 2007 - $1.92). This represented a trading discount to net book value of 54% compared to 33% at year-end;

- Total on-balance sheet assets of $206 million and additional assets under management of $116 million for a total of $322 million in assets invested and under management;

- Total revenue comprised of interest and investment income, asset management fees, other fees and commissions of $3.9 million (Q1, 2007 - $0.9 million);

- Net results of investments of -$3.2 million (Q1, 2007 - net gain of $0.4 million) which includes $2.8 million in unrealized losses on publicly traded investments (Q1, 2007 - unrealized gain on publicly traded investments of $0.4 million);

- Positive cash flow from operations (from the statement of cash flows before consideration of changes in non-cash working capital) of $0.6 million (Q1, 2007 - negative $0.2 million);

- Net loss in the quarter of $2.1 million (Q1, 2007 - net income of $0.8 million) or loss per share of $0.07 (Q1, 2007 - earnings per share of $0.06) on a basic and fully diluted basis;

- The Company has approximately $23 million of working capital and publicly traded investments at the parent level that can be used to fund future private equity investments and to sponsor new funds under management.

Outlook

The Company intends to continue to make private investments in both private and public companies as 2008 unfolds. Private investments will be funded with existing cash and the liquidation of the public portfolio. The Company believes that the continued transition of the Company's invested capital from publicly traded investments to private investments will increase the stability and predictability of the Company's financial performance.

Share price support

On April 25, 2008, the Company's shareholders approved a motion to institute a mandatory market purchase plan (the "Mandatory"). Management believes the addition of the Mandatory should enhance the liquidity of its shares and help reduce the spread between the Company's net book value per share and the market price of the shares. The Mandatory requires the Company to purchase its shares for cancellation subject to specified conditions and thresholds.

On August 10, 2007 the Company instituted a normal course issuer bid ("NCIB") and has begun purchasing its shares in the open market for cancellation. Any such purchases are made by the Company at the prevailing market price at the time of such purchases in accordance with the requirements of the TSX. As of May 2, 2008, the Company had purchased 815,800 shares for cancellation under the NCIB at an average price of $1.91 per share.

Under both programs, purchasing the Company's shares in the marketplace for cancellation at prices below net book value is accretive for all remaining shareholders.

Q1 conference call

A conference call has been scheduled for Thursday, May 8, 2008 at 10:00 a.m. EST to discuss the Company's 2008 first quarter financial results and provide an update on current business activities. C.A. Bancorp's 2008 first quarter Management's Discussion and Analysis and Consolidated Financial Statements will be available on its website at www.cabancorp.com and on SEDAR at www.sedar.com prior to the call.

To participate in the call, please dial 416-620-3447 or 1-800-396-7098. A recording of the conference call will be available for replay until Thursday, June 5, 2008, by dialing 416-695-5800 or 1-800-408-3053, passcode: 3260598#.