PRT Management Inc.

PRT Management Inc.
C.A. Bancorp Inc.

C.A. Bancorp Inc.

June 07, 2007 09:00 ET

PRT Management Inc.: PMI-Bancorp Strategic Partnership Mails Information Circular

New strategy and trustees recommended

VICTORIA, BRITISH COLUMBIA--(Marketwire - June 7, 2007) - Management of PRT Forest Regeneration Income Fund (TSX:PRT.UN) announced today that PMI-Bancorp Strategic Partnership Ltd. has mailed an information circular to unitholders recommending that they choose a new growth and diversification strategy for the fund by electing a new slate of independent trustees at the annual general meeting scheduled for June 26, 2007.

"We believe the fund will have improved opportunities for growth if it adopts the new strategic approach," said John Kitchen, who is President and Chief Executive Officer of the fund's operating business Pacific Regeneration Technologies Inc. and also of PRT Management Inc., which has administered the fund since inception in 1997. "The new approach provides greater opportunity for prosperity given the challenges facing the forest industry and the tax changes for trusts announced last year."

The new strategy calls for controlled and accretive growth by acquiring companies that have a strong cash flow and complement the fund's environmental roots. The strategy includes modest continued growth in the original forest seedlings sector complemented by expansion into three new related business areas: specialized agriculture, sustainable resource management and environmental services.

The proposed new slate of independent trustees consists of three Canadian business executives: Sam Ketcham and Brian Nixon of Vancouver and Michael Boyd of Toronto. Management recommends the three new trustees on the strength of their independence, skills and experience to capably oversee further refinement of the strategic plan and the disciplined growth of the fund for the benefit of all unitholders.

If the new slate of trustees is elected, Toronto-based C.A. Bancorp (TSX:BKP), a Canadian merchant bank and asset manager, would buy a 50% interest in PRT Management and would provide transactional experience and advice to management as part of the new strategy. Management would retain full responsibility for recommending acquisitions to the fund.

The circular, which has more information about the new strategy and the new slate of trustees, was mailed by PMI-Bancorp Strategic Partnership Ltd. of Vancouver. Copies of the circular can be obtained from the fund's filings on

PMI-Bancorp is jointly owned by Mr. Kitchen, by PRT Management's Vice President Finance and Administration and Chief Financial Officer Robert Miller, and by C.A. Bancorp. The proposed new trustees are all independent of management and C.A. Bancorp.

Mr. Kitchen, Mr. Miller and C.A. Bancorp hold a combined 5.9% interest in the fund. The two largest shareholders of the fund collectively hold 28.6% of the fund, and have indicated that they support the new strategy and the new slate of trustees.

About PRT Forest Regeneration Income Fund

The fund is an open ended, single purpose trust created to own all the common shares and subordinated notes of Pacific Regeneration Technologies Inc., which is the largest producer of container grown forest seedlings in North America, operating 15 nurseries in Canada and the USA.

Forward-Looking Statements

This news release contains forward-looking statements or information within the meaning of applicable securities laws in Canada (collectively referred to as "forward-looking statements"). Statements, other than statements of historical fact, are forward-looking statements and include, without limitation, statements regarding the fund's strategy, future operations, prospects and plans and objectives of the trustees or of management.

The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify forward-looking statements, which include underlying assumptions, although not all forward-looking statements contain these identifying words. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other things contemplated by the forward-looking statements will not occur.

Forward-looking statements in this news release include, but are not limited to, statements about the fund proposed new strategy, including possible acquisitions of other companies. Forward-looking statements in this news release are based on the opinions and estimates of management or of the other parties to which they are attributed at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the forest seedling business and in a shift in the strategic focus of the fund.

There are no assurances that acquisitions contemplated under the new strategy will be consummated or that, if completed, such acquisitions will be accretive to unitholders. Risks applicable to the fund and its operations are disclosed in the MD&A portion of the annual reports filed by the fund with the relevant securities regulators.

Although management has attempted to identify the forward-looking statements, the underlying assumptions, and the risks, uncertainties and other factors that could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements, there may be other factors that cause actual results or events to differ from those expressed or implied in the forward-looking statements. Management undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise, after the date hereof, except as may be required by law.

Contact Information