Canadian General Investments, Limited
TSX : CGI.PR.A
TSX : CGI.WT
TSX : CGI
TSX : CGI.PR.B
LSE : CGI
LSE : CGIW

Canadian General Investments, Limited

July 19, 2005 13:28 ET

Canadian General Investments Reports 2005 Second Quarter Results

TORONTO, CANADA--(CCNMatthews - July 19, 2005) - Canadian General Investments, Limited's (CGI) (TSX:CGI)(TSX:CGI.PR.A)(TSX:CGI.PR.B)(TSX:CGI.WT)(LSE:CGI)(LSE:CGIW) diluted net asset value per share (NAV) return, with dividends reinvested, for the three, six and twelve month periods ended June 30, 2005 were 1.9%, 7.9% and 29.3%, respectively. By comparison, the returns of the benchmark S&P/TSX Composite Total Return Index (S&P/TSX) for the same periods were 3.6%, 8.1% and 18.0%. CGI's market returns to common shareholders were 9.2% for the second quarter, 20.7% year-to-date and nearly 50% over the twelve months to June 30, 2005.

At June 30, 2005, net assets were $513,215,000, up 7.8% from the 2004 year-end value of $475,976,000. For the first six months of 2005, CGI had an increase in net assets resulting from operations of $47,610,000, or $2.09 per common share on a diluted basis. For the corresponding period in 2004, the increase was $27,933,000 or $1.24 per share.

The net gain on investments for the first six months of 2005 was $47,116,000, comprised of a net realized gain of $38,845,000 and a change in unrealized gain on investments of $8,271,000. There was a net gain on investments of $25,325,000 during the comparable period in 2004.

Net investment income for the first half of 2005 was $494,000, down from the $2,608,000 recorded in the six-month period in 2004. This decrease was due to a special dividend of $3.3 million that was received from BPO Properties Limited in March 2004.

In order to increase NAV, CGI purchased 85,800 of its warrants for cancellation during the first half of 2005 pursuant to its normal course issuer bid which was renewed in April 2005. Also, on June 30, 2005, warrant holders exercised 74,302 warrants at $5.22 per share. Outstanding warrants continue to be exercisable on June 30 of each year until their expiration in 2007.

During each of the first two quarters of both 2005 and 2004, CGI paid regular income dividends of $0.06 per share to its common shareholders.



FINANCIAL HIGHLIGHTS

(in thousands of dollars, except per share amounts)

Three Months Ended Six Months Ended
------------------ ----------------
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
------------------------------------
Net investment income for
the period 315 202 494 2,608
Net realized gain on investments 18,629 13,145 38,845 22,014
Change in unrealized gain on
investments (6,096) (23,337) 8,271 3,311
------ ------- ------ ------
Increase (decrease) in net
assets resulting from operations 12,848 (9,990) 47,610 27,933
Increase (decrease) in net
assets resulting from operations
per common share - basic 0.63 (0.49) 2.32 1.36
Increase (decrease) in net
assets resulting from operations
per common share - diluted 0.56 (0.45) 2.09 1.24


As at
-----
June 30, December 31, June 30,
2005 2004 2004
---------------------------------

Net assets 513,215 475,976 409,589
Net asset value per share - basic 24.94 23.22 19.98
Net asset value per share - diluted 22.22 20.71 17.91


In the United Kingdom, copies of the Corporation's quarterly report will be made available at the U.K. branch transfer agent, Computershare Investor Services PLC, P.O. Box 82, The Pavilions, Bridgwater Road, Bristol, BS99 7NH. Phone 0117-941-7781.

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