Integrated Asset Management Corp.

Integrated Asset Management Corp.

May 23, 2006 09:05 ET

Integrated Asset Management Corp. Announces Dividend Increase and Results for Second Quarter of Fiscal 2006

TORONTO, ONTARIO--(CCNMatthews - May 23, 2006) - Integrated Asset Management Corp. ("IAM") (TSX VENTURE:IAM) today announced its second quarter results and the Board of Directors' approval to increase IAM's regular dividend. The amount of the regular annual cash dividend has been increased to $0.07 per common share from $0.05 per common share, to be payable on a semi-annual basis ($0.035 per share).

Victor Koloshuk, Chairman and Chief Executive Officer of IAM, said "On this first anniversary of the commencement of the regular dividend, we are pleased to announce an increase of 40% in the cash dividend from $0.05 per common share to $0.07 per common share. IAM continues to grow and the quality and stability of our earnings are sufficient to support the increase in the regular dividend."

The Board declared a dividend today in the amount of $0.035 per common share which will be payable on June 29th, 2006 to shareholders of record on June 22nd, 2006.

Unaudited financial results for the quarter ended March 31, 2006:

Review of the 3-Month Period Ended

March 31, 2006 March 31, 2005
(thousands except per (thousands except per
HIGHLIGHTS share amounts) share amounts)
Assets and Committed
Capital Under
Management ("AUM") $2,932,300 $2,818,900
Total Revenues $8,952 $4,945
Total Performance Fees
Included in Total
Revenues $3,550 $100
Operating Income (Loss) (i) $416 $(445)
Net Income (Loss) $245 $(260)
Earnings (Loss) Per Share $0.01 $(0.01)

(i) Operating Income (Loss) is a non-GAAP (generally accepted
accounting principle) earnings measure. This measure is income
before income taxes and the deduction of stock-based compensation

IAM experienced AUM growth of 2% adding approximately $60 million of new assets since September 30, 2005. AUM were comprised of $2.1 billion at the Asset Management operations and $0.8 billion at the Hedge Funds operations at March 31, 2006.

Total revenues increased 81% to $9.0 million in the three months ended March 31, 2006 from $4.9 million in the three months ended March 31, 2005. This is predominantly a result of increased performance fees realized during the current quarter. Growth occurred in all areas of revenue; 8% in the predictable revenues of management fees, administration and redemption fees and over $3 million of growth in IAM's less predictable revenues (performance fees).

Operating income increased to $0.4 million from the prior year's quarter operating loss of $0.4 million. Net income increased to $0.2 million in the current quarter from a net loss of $0.3 million in the prior year's quarter.

IAM earns performance fees when investment returns outperform a designated benchmark. These benchmarks are contract specific and only apply to certain investment products. Performance fees of the Asset Management operations are realized sporadically as they tend to be recognized generally towards the end of the life of the pool of assets being managed, which at times can be up to twelve years. Performance fees at the Hedge Funds operations are generally recognized on an annual basis or semi-annual basis.

For detailed financial statements for the quarter, including Management's Discussion and Analysis, please refer to IAM's website at or SEDAR at

IAM was founded 8 years ago with 4 employees. Today we have 280 employees with approximately $3 billion in assets and committed capital under management.

Our strategy is to seek out the very best alternative asset managers. We both acquire and build teams of experienced, highly successful investment professionals. Our product line is broad, today encompassing private equity, private debt, real estate, managed futures and hedge funds. It will expand. Additional strategies and managers that might be added to the group are continually being evaluated.

This press release may contain forward-looking statements with respect to IAM and its products and services, including its business operations and strategy and financial performance and condition. Although management believes that the expectations reflected in any such forward-looking statements are reasonable, such statements involve risks and uncertainties. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, including interest rates, business competition, changes in government regulations or in tax laws, and other factors discussed in materials filed with applicable securities regulatory authorities from time to time.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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