BluMont Capital Inc.
TSX VENTURE : BCC

BluMont Capital Inc.

October 31, 2006 08:49 ET

Integrated Asset Management Corp. Acquires 3,173,603 BluMont Shares and Extends its Offer to November 10, 2006

TORONTO, ONTARIO--(CCNMatthews - Oct. 31, 2006) - Toronto, Ontario - BluMont Capital Inc. ("BluMont" or the "Company") (TSX VENTURE:BCC) announces that Integrated Asset Management Corp. ("IAM") issued a press release on Friday, October 27, 2006 disclosing the following:

- IAM has taken up 3,173,603 common shares of BluMont pursuant to its formal exchange offer (the "Offer") as at the expiry time of the Offer, representing approximately 9.5% of BluMont's outstanding shares. As a result, IAM now owns approximately 55.7% of the outstanding shares of BluMont.

- In addition, IAM has extended the expiry time of the Offer to 8:00p.m. (Toronto time) on November 10, 2006.

As previously disclosed by the Company, both the Independent Committee of directors previously established by the board of directors and the voting members of the board of directors have determined to make no recommendation to BluMont shareholders in respect of the Offer. The three members of the board of directors of the Company who also are directors of IAM abstained from voting on the determination in respect of the IAM Offer.

In making their decision whether to accept or reject the Offer, BluMont shareholders should review carefully the factors considered by the Independent Committee and board of directors which are described in the directors' circular that was mailed to BluMont shareholders on October 6, 2006 and which is available on SEDAR at www.sedar.com.

Crosbie & Company Inc., the independent financial advisor to the Independent Committee, as required by and in accordance with applicable securities laws, has prepared a formal valuation of the BluMont common shares and the common shares of IAM offered as consideration therefor under the Offer. As disclosed in the offer and take-over bid circular prepared by IAM in respect of the Offer and as disclosed in the directors' circular, Crosbie & Company Inc. has concluded that the consideration offered pursuant to the Offer is inadequate, from a financial point of view, to BluMont shareholders excluding IAM and its affiliates.

About BluMont

BluMont is a leading provider of alternative investment products to Canadian investors. The Company offers investors innovative investment solutions that provide enhanced diversification and robust return potential. BluMont employs over 41 people nationwide and has approximately C$790 million in assets under management. BluMont is 55.7% owned by Toronto-based IAM, a leading alternative asset investment management company with approximately C$3 billion in assets and committed capital under management. Further information on BluMont can be found at www.blumontcapital.com.

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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