Canadian General Investments, Limited

Canadian General Investments, Limited

July 17, 2007 17:20 ET

Canadian General Investments Reports June 30, 2007 Interim Results

TORONTO, CANADA--(Marketwire - July 17, 2007) - Canadian General Investments, Limited's (CGI's) (TSX:CGI)(TSX:CGI.PR.A)(TSX:CGI.PR.B)(TSX:CGI.PR.C)(LSE:CGI) net asset value per share (NAV), with dividends reinvested, increased by 9.3% for the six months ended June 30, 2007. By comparison, the return of the benchmark S&P/TSX Composite Total Return Index (S&P/TSX), for the corresponding period was 9.1%. CGI's market return to common shareholders for the six months to June 30, 2007 was 3.9%.

Good performance was achieved across a broad range of stocks in CGI's investment portfolio. In particular, the Manager's bottom-up investment strategy resulted in overweightings in the Materials and Industrials sectors and an underweighting in Financials vis-a-vis the benchmark. The Materials, Industrials and Financials sub-indexes of the S&P/TSX posted six-month returns of 12.0%, 19.4% and 3.4%, respectively.

At June 30, 2007, net assets were $711,815,000, up 9.0% from the 2006 year-end value of $653,128,000. The corresponding diluted NAVs at June 30, 2007 and December 31, 2006 were $34.12 and $31.33.

During each of the first two quarters of both 2007 and 2006, CGI paid regular income dividends of $0.06 per share to its common shareholders.

CGI had 292,156 warrants outstanding that were exercisable for common shares of the Company on June 30, 2007, the final exercise date, at an exercise price of $2.62 per share. However, since June 30, 2007 fell on a weekend, the exercise date was delayed until the next business day, and on July 3, 2007, 269,982 warrants were exercised for total proceeds of $707,000. The remaining 22,174 warrants expired without value.

CGI is a closed-end equity fund, focused on medium- to long-term investments in primarily Canadian corporations. Its objective is to provide better than average returns to investors through prudent security selection, timely recognition of capital gains and appropriate income generating instruments.


(in thousands of dollars, except per share amounts)

Six Months Ended
June 30, June 30,
2007 2006

Net investment loss (3,843) (2,814)
Net gain on investments 73,958 50,465
-------- --------
Increase in net assets resulting from operations 70,115 47,651
Increase in net assets resulting from operations
per common share - basic 3.41 2.32
Increase in net assets resulting from operations
per common share - diluted 3.36 2.29

As at
June 30, December 31,
2007 2006

Selected data
Net assets 711,815 653,128
NAV - basic 34.57 31.72
NAV - diluted 34.12 31.33

Selected data according to GAAP(1)
GAAP net assets 709,100 653,128
GAAP NAV - basic 34.44 31.72
GAAP NAV - diluted 33.99 31.33

(1) Calculated in accordance with Canadian generally accepted accounting
principles (GAAP). Whereas fair value for Canadian GAAP was previously
based on the last traded price of the day, when available, Section 3855 of
the CICA Handbook, which applies to the Company's fiscal year ending
December 31, 2007 requires that the fair value of financial instruments
which are traded in active markets be measured based on the last bid price
for the securities. However, currently this method is only applicable to
the reported value of the Company's investments as reported in the interim
and annual financial statements.

In the United Kingdom, copies of the Company's financial reports 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 0117-305-1075.

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