Integrated Asset Management Corp.
TSX VENTURE : IAM

Integrated Asset Management Corp.

October 27, 2006 19:54 ET

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

TORONTO, ONTARIO--(CCNMatthews - Oct. 27, 2006) - Integrated Asset Management Corp. ("IAM") (TSX VENTURE:IAM) today announced that it has taken up 3,173,603 common shares of BluMont Capital Inc. ("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. All of the conditions of the Offer were satisfied as at the expiry time.

In addition, in order to provide BluMont shareholders who have not yet accepted the Offer with the opportunity to analyze and accept the Offer, IAM has extended the expiry time of the Offer to 8:00 p.m. (Toronto time) on November 10, 2006. There were delays at certain investment dealers in sending the documentation on the Offer to clients who are shareholders of BluMont. All other terms and conditions of the Offer will remain unchanged. IAM will mail a formal notice of extension to BluMont shareholders as soon as practicable. There can be no assurance that IAM will again extend the Offer subsequent to November 10, 2006.

Under the Offer, holders of BluMont common shares are entitled to receive 1/3 of one common share of IAM for each common share of BluMont tendered to the Offer, representing a premium of 39% based on the closing price on the TSX Venture Exchange of the BluMont and IAM common shares on May 19, 2006, the last full trading day before IAM's public announcement of its intention to make the Offer.

In addition to the premium of 39%, IAM considers that BluMont shareholders should accept the Offer for, among others, the following reasons:

- IAM pays a dividend, currently of $0.07 per share per annum, which is a yield of 4.0% based on the current market price.

- IAM shares represent an interest in a diversified asset management company covering real estate, private corporate debt, private equity, managed futures and hedge funds.

- The liquidity of the IAM shares should be enhanced by the Offer whereas the liquidity of the BluMont shares may be materially reduced and the BluMont shares may no longer qualify for listing on the TSX Venture Exchange.

- BluMont shareholders will retain an important indirect ownership in BluMont. Provided IAM acquires 100% of the BluMont shares, each IAM share will represent ownership in 1.2 BluMont shares.

The BluMont Directors' Circular dated October 4, 2006 made no recommendation regarding the Offer but advised BluMont shareholders to review carefully the factors considered which are described in such circular.

The consideration under the Offer by IAM is 1/3 (or 0.33 recurring) of one IAM share for each BluMont share. Crosbie & Company Inc. ("Crosbie"), the independent financial advisor to the Independent Committee of the board of directors of BluMont, prepared a valuation and opinion which includes an estimate of the en bloc value (i.e., 100% of the shares) of BluMont of $0.74 to $0.88 per share and IAM of $2.32 to $2.69 per share. The following table compares the two ranges determining the implied ratios:



Range of En Bloc Value
-------------------------------------
Low High Midpoint
-------------------------------------

BluMont $0.74 $0.88 $0.81
IAM $2.32 $2.69 $2.50
Implied Ratio(1) 0.319 0.327 0.323

(1)Rounded to three decimal places.


As set forth above, the implied ratio closely approximates the exchange ratio of 0.33 in the Offer. The exchange ratio of the Offer is, in fact, superior to the implied ratio ranging from 0.319 to 0.327 as a BluMont shareholder would receive more IAM shares.

It is IAM's view that comparing the per share en bloc values of both companies is the best way for BluMont shareholders to evaluate the Offer.

Instead, in reaching its conclusion that the consideration offered in the Offer is inadequate, Crosbie reduced the en bloc share value of IAM by a range of 20% to 25% for a "minority discount" but no discount was applied to the en bloc share value of BluMont. It is IAM's view that this approach makes a fair comparison impossible and is not appropriate. Shareholders of BluMont are therefore advised to critically review the approach adopted by Crosbie and form their own opinions.

Further details of the Offer are contained in the Offer and take-over bid circular and other related documents available on SEDAR at www.sedar.com.

This press release is neither an offer to purchase securities nor a solicitation of an offer to sell any securities. Such an offer to purchase securities of BluMont may only be made pursuant to the Offer and take-over bid circular filed with the securities regulatory authorities in Canada.

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

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