Lindsey Morden Group Inc.

Lindsey Morden Group Inc.

August 31, 2005 10:58 ET

Lindsey Morden Completes Rights Offering

TORONTO, ONTARIO--(CCNMatthews - Aug. 31, 2005) -

(Note: All dollar amounts in this press release are expressed in Canadian dollars.)

Lindsey Morden Group Inc. (TSX:LM.SV) today announced that it has completed its previously announced rights offering, issuing a total of 7,791,712 subordinate voting shares at $4.25 per share for net proceeds, after offering expenses, of approximately $32,245,000. The full net proceeds of the offering will be used to partially repay the $105 million of borrowings by one of Lindsey Morden's subsidiaries under an unsecured non-revolving term credit facility. Maturity of the remaining amounts outstanding under the credit facility has been extended to March 31, 2006.

Completion of the rights offering has also resulted in an adjustment to the "minimum market price", a threshold specified by Lindsey Morden's articles for the purpose of determining the number of votes attached to its multiple voting shares at a particular shareholders' meeting, from $4.00 to $3.86 effective August 30, 2005.

Lindsey Morden Group Inc. is a holding company, which, through its Cunningham Lindsey subsidiaries, provides a wide range of independent insurance claims services, including claims adjusting, appraisal and claims and risk management services. It has a worldwide network of branches in Canada, the United States, the United Kingdom, continental Europe, the Far East, Latin America and the Middle East. Lindsey Morden also provides claims appraisal training courses in the United States.

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