C.A. Bancorp Inc.

C.A. Bancorp Inc.

March 03, 2008 10:49 ET

C.A. Bancorp Inc. (TSX:BKP) Announces $4 Million Investment in the Salbro Bottle Group

TORONTO, ONTARIO--(Marketwire - March 3, 2008) - C.A. Bancorp Inc. ("C.A. Bancorp")(TSX:BKP) is pleased to announce the completion of a $4 million growth capital investment in Salbro Bottle Inc. and a group of privately held related companies based in Toronto, Ontario, together known as the Salbro Bottle Group ("Salbro"). Salbro will use the proceeds to capitalize on growth opportunities in the packaging industry by expanding its in-house manufacturing and design capabilities.

Salbro is an established designer, manufacturer, and distributor of packaging components, specializing in glass and plastic bottles. Serving a broad number of industry sectors, Salbro products form part of the packaging for many household brand name products. The combination of its distribution activities with its manufacturing operations provides revenue diversification as well as substantial benefit to its customers. Salbro can offer a broad range of products to its customers, while focusing its manufacturing efforts on those products with attractive margins.

Salbro has two manufacturing and warehouse facilities, one in Toronto, Ontario and the other in St. John's, Newfoundland. Between its two facilities, Salbro utilizes seven independent production lines to manufacture plastic bottles and containers using a high-speed, stretch blow molding process. Salbro has an in-house design capability to create custom containers or it can draw from an existing library of over 170 designs for use on its production lines.

"We are very excited to be investing in Salbro; a mature cash-flow positive business with strong growth opportunities and an experienced management team," says Mark Gardhouse, President of C.A. Bancorp. "Sourcing components from around the world provides their customers access to a wide selection of products, while being able to manufacture locally gives Salbro the ability to respond to customer needs quickly. This combination of manufacturing and distribution activities gives Salbro a true competitive edge."

The $4 million investment was made by C.A. Bancorp and the Sentry Select Total Strategy Fund ("Total Strategy")(TSX:TSF.UN). C.A. Bancorp funded $3.6 million and Total Strategy funded the remaining $0.4 million of the investment. The investment has a four year maturity horizon, and pays a current coupon. Now partners with the Salbro ownership group, C.A. Bancorp's and Total Strategy's investments will fully participate in the growth of Salbro.

Salbro Bottle Group

Salbro Bottle Group is an established designer, manufacturer, and distributor of packaging components, specializing in glass and plastic bottles. Serving a broad set of sectors, Salbro products form part of the packaging for many household brand name products. Drawing from their deep relationships in the packaging field across the globe, Salbro has access to sources of glass bottles, specialized containers, lids, caps, and pumps to offer their customers a full spectrum of packaging solutions. www.salbrobottle.com

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.

Sentry Select Total Strategy Fund

Total Strategy is a publicly traded closed-end fund which provides investors with an opportunity to benefit from Sentry Select Capital Corp.'s extensive management expertise across various investment strategies as well as C.A. Bancorp's experience with private equity investments.

Certain statements included in this news release constitute forward looking statements, including those identified by the expressions "expect", "believe", "intend", "will" and similar expressions to the extent they relate to Salbro, Total Strategy or C.A. Bancorp. The forward-looking statements are not historical facts but reflect C.A. Bancorp's current expectations regarding future results or events. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations including but not limited to market conditions, competition, reliance on key personnel and customers, factors affecting the packaging industry generally, and private equity market conditions. Readers are cautioned not to place undue reliance on forward-looking information. C.A. Bancorp undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

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