C.A. Bancorp Inc.
TSX : BKP

C.A. Bancorp Inc.

September 23, 2010 17:16 ET

C.A. Bancorp Inc. Provides Update to Shareholders

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2010) - C.A. Bancorp Inc. ("C.A. Bancorp" or the "Company") (TSX:BKP) is pleased to provide shareholders with an update on the Company's affairs.

Return of Capital to Shareholders

As previously disclosed, the Company intends to make a distribution to shareholders prior to December 31, 2010. The Company has been exploring different methods to achieve this objective. The distribution may take the form of a substantial issuer bid by way of a "Dutch Auction". The Company is also in the process of seeking an advance income tax ruling on other tax effective means of distributing capital to shareholders.

Since August 10, 2010, the Company has been purchasing its common shares for cancellation under a normal course issuer bid. As of the date hereof, the Company has repurchased 163,400 shares at a weighted average price of $1.81 per share.

Realization Strategy

Since June 30, 2010, and in furtherance of the previously announced realization strategy, the Company has completed three asset dispositions for aggregate proceeds of approximately $18.4 million, which has substantially increased the Company's liquid net assets. As at the date hereof, the Company's has liquid net assets of approximately $38.0 million or $1.43 per share.

The Company is continuing to pursue opportunities to accelerate the realization of its assets. However, as previously disclosed, given the nature of the Company's investments, it may be that the Company's best interests are served by holding certain assets until their respective contractual maturity dates.

The Company has taken steps to minimize its operating expenses, and intends to continue to explore more cost effective operational methods and structures to further reduce expenses.

Resignation of Interim Chief Executive Officer

The Company also announces that Paul Haggis has resigned from his position as interim Chief Executive Officer, effective today. The Company expresses its sincere thanks to Mr. Haggis for his service as interim Chief Executive Officer over the past four months as the Company has repositioned itself and begun executing its realization strategy. Mr. Haggis will continue to serve as an advisor to management, a director of the Company and as interim Chief Executive Officer of C.A. Bancorp Canadian Realty Finance Corporation. C.A. Bancorp's day-to-day operations will be managed by Kurt Brands, the Company's Chief Operating Officer.

C.A. Bancorp Inc.

C.A. Bancorp is a publicly traded Canadian merchant bank and alternative asset manager that provides investors with access to a range of private equity and other alternative asset class investment opportunities. C.A. Bancorp is focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.

This release includes certain forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "should", "plans" or "continue" or the negative thereof or variations thereon or similar terminology. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will provide to be correct. These forward- looking statements are subject to a number of risks and uncertainties. Actual results could differ materially from those anticipated in these forward-looking statements. Reference should be made to the risk factors published in the Company's most recent management discussion and analysis and, with respect to the realization strategy, its directors circular, both of which are available at www.sedar.com.

C.A. Bancorp Inc.
The Exchange Tower
130 King Street West, Suite 2810
Toronto, Ontario M5X 1A4
Telephone: (416) 214-5985
Fax: (416) 861-8166

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