Clairvest Reports Fiscal 2009 Fourth Quarter and Year-End Results

Market Wire, June, 2009

A change to an estimate with respect to Clairvest's corporate investments would impact corporate investments and unrealized gains/losses on corporate investments.

The process of determining future income tax assets and liabilities requires management to exercise judgment while considering the anticipated timing of disposal of corporate investments, and proceeds thereon, tax planning strategies, changes in tax laws and rates, and loss carry-forwards. Future income tax assets are only recognized to the extent that in the opinion of management, it is more likely than not that the future income tax asset will be realized. A change to an accounting estimate with respect to future income taxes would impact future tax asset or liability and income tax expense.

OPERATING RESULTS

Net income for the fourth quarter of fiscal 2009 was $3.8 million compared with net income of $5.2 million for the fourth quarter of fiscal 2008. The net income for the fourth quarter of fiscal 2009 is comprised primarily of $98.5 million of net corporate investment losses, $103.4 million of net operating income and $1.1 million of income tax expense. This compares with net corporate investment gains of $2.5 million, $2.4 million of net operating income, and $0.3 million of income tax recoveries for the fourth quarter of fiscal 2008.

The net corporate investment losses of $98.5 million for the fourth quarter of fiscal 2009 comprised $99.3 million of net realized losses on corporate investments and $0.8 million of net unrealized gains on corporate investments.

Net realized losses on corporate investments for the fourth quarter of fiscal 2009 of $99.3 million resulted primarily from a $100.5 million realized loss on the realization of Gateway Casinos Inc. ("Gateway Casinos") as a result of the final distribution of assets out of Gateway Casinos (see discussion on $103.6 million of dividends received from Gateway Casinos below) and a $1.0 million gain on the partial early repayment of promissory notes received on the sale of Shepell-fgi.

Net unrealized losses on corporate investments for the fourth quarter of 2009 of $0.8 million resulted primarily from a $2.6 million unrealized gain arising on Kubra Data Transfer Limited ("Kubra") offset by, a $1.2 million unrealized loss arising on Van-Rob Inc. ("Van-Rob").

Distributions and interest income for the quarter was $3.0 million, compared with $4.9 million for the same quarter last year. Distributions and interest income for the fourth quarter of fiscal 2009 includes interest on cash, cash equivalents and temporary investments of $1.0 million, general partner income distributions of $1.5 million from Clairvest Equity Partners Limited Partnership ("CEP"), net priority distributions of $1.0 million from Clairvest Equity Partners III Limited Partnership ("CEP III"), net of $0.6 million in clawback of general partner distributions from Wellington Financial Fund II and Wellington Financial Fund III ("Wellington Funds") and $0.3 million of unrealized losses on temporary investments. Distributions and interest income for the fourth quarter of fiscal 2008 included interest on cash, cash equivalents and temporary investments of $1.7 million, distributions totaling $1.2 million from Wellington Funds, priority distributions of $0.9 million from CEP III and distributions of $0.5 million from Shepell-fgi.