BluMont Capital Inc.
TSX VENTURE : BCC

BluMont Capital Inc.

May 25, 2006 16:25 ET

BluMont Capital Inc. Establishes Independent Committee of Directors

TORONTO, ONTARIO--(CCNMatthews - May 25, 2006) - BluMont Capital Inc. ("BluMont") (TSX VENTURE:BCC) announces that the board of directors of BluMont has established a committee of independent directors (the "Independent Committee") to review and consider the proposal presented to BluMont by its principal shareholder, Integrated Asset Management Corp. ("IAM"), whereby IAM proposes to acquire the common shares of BluMont not owned by IAM, and to consider alternatives. As previously disclosed by BluMont and IAM on May 23, 2006, IAM has proposed an exchange offer for all of the outstanding common shares of BluMont that IAM does not already own, with the consideration being 1/3 of one common share of IAM for each common share of BluMont held. IAM also has indicated that it would consider the possibility of effecting a going private transaction involving BluMont by way of amalgamation or similar transaction on the same terms set forth above. IAM currently owns approximately 46.1% of the outstanding common shares of BluMont.

The members of the Independent Committee are Thomas H. Simpson (Chair) and William Train. The Independent Committee has retained Fasken Martineau DuMoulin LLP as its legal counsel and is in the process of hiring independent financial advisors.

At this time, BluMont has not received a formal offer from IAM nor is it legally obligated to engage in any transaction on the terms set forth above or on any other terms, and no assurance can be given that any transaction will be completed. Any proposed transaction will be reviewed by the Independent Committee in consultation with its advisors.

Cautionary Statement

This press release contains forward-looking statements with respect to a proposal received by BluMont from IAM. There can be no assurance that such proposal will result in the completion of a transaction either on the terms set forth above or on any other terms. Any transaction would be subject to risks and uncertainties, including the requirement to obtain all applicable regulatory, shareholder and other approvals.

About BluMont

BluMont is a leading provider of alternative investment products to Canadian investors. Specializing in hedge funds, the firm offers investors innovative investment solutions that provide enhanced diversification and robust return potential. BluMont employs 40 people nationwide and has approximately C$850 million in assets under management. BluMont is 46.1% directly owned by Toronto-based Integrated Asset Management Corp. (TSXV:IAM), a leading alternative asset investment management company with approximately C$3 billion in assets and committed capital under management. Further information on BluMont can be found at www.blumontcapital.com.

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

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