Coastal Value Fund Inc.

Coastal Value Fund Inc.

December 22, 2006 16:30 ET

Coastal Value Fund: Year End Results

HAMILTON, BERMUDA--(CCNMatthews - Dec. 22, 2006) - COASTAL VALUE FUND (TSX:CVF.PR.A) announced that the net results of investment operations for the year ended September 30, 2006 was $20.6 million as compared to $75.8 million in 2005. The decline reflects smaller unrealized portfolio gains, as compared to last year.

Year ended Year ended
September 30, September 30,
In millions (except per unit or share amounts) 2006 2005

Net assets $ 193.2 $ 228.0
Net asset value per unit $ 89.38 $ 80.61
Net asset value per Senior preferred share $ 25.00 $ 25.00


The board of directors declared a dividend of $0.375 per Senior preferred share payable on December 29, 2006 to shareholders of record on December 15, 2006.

The Fund owns a diversified portfolio of common shares.

This press release includes certain forward looking statements including management's assessment of the Company's future plans and operations based on current views and expectations. All statements other than statements of historic facts are forward looking statements. These statements contain substantial known and unknown risks and uncertainties, some of which are beyond the Company's control. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements. Readers should not place undue reliance on these forward looking statements which represent estimates and assumptions only as of the date on which such statements are made. The Company undertakes no obligation to publicly revise or update any forward looking statements, whether as a result of new information, future events or otherwise.

Contact Information

    Gordon Flatt
    441 799 2928
    914 509 1913 (FAX)