Lindsey Morden Group Inc.

Lindsey Morden Group Inc.

March 31, 2006 08:36 ET

Lindsey Morden Group Announces Term Facility Renewal

TORONTO, ONTARIO--(CCNMatthews - March 31, 2006) -

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

Lindsey Morden Group Inc. (TSX:LM.SV) today announced that its wholly-owned subsidiary, Cunningham Lindsey Canada Limited, has renewed its unsecured non-revolving term facility with Brookfield Bridge Lending Fund Inc. (formerly Brascan Bridge Lending Fund Inc.) until March 31, 2007, with an option to extend the facility for a further one-year term, subject to certain conditions. The principal amount of the renewed facility is $72,755,000 which bears interest at a per annum rate equal to the Canadian prime rate in effect from time to time plus 3% for the renewal term, increasing by 0.5% for the one-year extension, if any.

The renewal terms include commitment fees equal to 1% of the renewed loan balance, being $727,550, which has been paid, and 1.5% of the balance outstanding at the time of the further extension, if any. Financial covenants have been amended in certain respects to provide Lindsey Morden with additional flexibility and to reflect the capital raised by the 2005 rights offering. The facility has otherwise generally been renewed on the same terms as the maturing facility. The facility may be repaid at any time, but is permanently reduced by the amount of the repayment. It is unsecured and Lindsey Morden, its main operating companies and their respective holding companies, have guaranteed Cunningham Lindsey Canada's obligations under the facility on an unsecured basis.

In connection with the facility renewal, Fairfax Financial Holdings Limited has agreed to provide Lindsey Morden with financing as necessary in order to allow it to meet its liabilities and obligations as and when they fall due under the renewed facility (including the one-year extension), but only to the extent that money is not otherwise readily available to meet such liabilities and obligations.

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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