Canadian General Investments, Limited

Canadian General Investments, Limited

December 12, 2008 18:01 ET

Canadian General Investments, Limited Confirms Payment of Common Share Dividend on December 15, 2008

TORONTO, CANADA--(Marketwire - Dec. 12, 2008) - Canadian General Investments, Limited ("CGI" or "the Company") (TSX:CGI)(TSX:CGI.PR.B)(TSX:CGI.PR.C)(LSE:CGI) confirmed today that the $0.06 per common share dividend declared on October 15, 2008 to shareholders of record on November 28, 2008 would be paid as scheduled on December 15, 2008.

Previously, it was not certain whether the Company would be permitted to pay the aforementioned dividend as a result of market conditions and a dividend payment restriction contained in its Class A, Series 2 and Series 3 Preference Share provisions, which preclude payment of a common share dividend unless, after giving effect thereto, the ratio of its Assets to Obligations (both as defined in the Preference Share provisions) exceeds 2.5 times. As at the close of business on December 12, 2008, such ratio was in excess of 2.6 times and therefore the dividend can be paid as scheduled.

Payment of dividends on the Company's Class A, Series 2 and Series 3 Preference Shares on December 15, 2008 will also be made as scheduled.

In addition, CGI, as an investment corporation, is able to pay capital gains dividends, which enables the Company to recover capital gains taxes previously paid. Capital gains dividends are considered, at least annually, at the discretion of the Board. One of the primary considerations for the payment of a special capital gains dividend is the current year's performance of the fund. CGI has paid year-end special capital gains dividends in twelve of the last thirteen years. However, as a result of market condition, no such dividend will be paid in 2008. The quarterly income dividends, totalling $0.24 per common share in 2008, represent an aggregate annual yield to investors of 2.7% based on the December 12, 2008 closing market price of $9.00.

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