Coastal Value Fund Inc.

Coastal Value Fund Inc.

January 19, 2007 17:07 ET

Coastal Value Fund: Redemption of Senior Preferred Shares

HAMILTON, BERMUDA--(CCNMatthews - Jan. 19, 2007) - COASTAL VALUE FUND (TSX:CVF.PR.A) re-announces that it will redeem all of its issued Senior Preferred shares (TSX:CVF.PR.A) on February 21, 2007. The redemption will be made in accordance with the Fund's articles and results from a retraction of the Capital shares. Shareholders need not take any action relating to the redemption; the Fund's transfer agent CIBC Mellon will automatically redeem the shares on February 21, 2007 and deposit cash proceeds directly into shareholder's accounts equal to $25.4125, representing $25.20 per share plus $0.2125 per share representing accrued and unpaid dividends. Post the redemption, the Senior Preferred shares will no long be listed on the TSX.

Contact Information

    Gordon Flatt
    (441) 799-2928
    (914) 509-1913 (FAX)