Matrix and GrowthWorks Update Status of Regulatory Working Capital

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 22, 2013) - Matrix Asset Management Inc. (TSX:MTA) ("Matrix" or the "Company") and its subsidiaries, GrowthWorks Capital Ltd. ("GWC") and SEAMARK Asset Management Ltd. ("SEAMARK"), announced today that they continue to pursue measures for re-establishing compliance with regulatory working capital requirements.

On May 15, 2013, Matrix announced its operating results for the quarter ended March 31, 2013, including a consolidated working capital deficit of $7.0 million. Matrix announced that the working capital deficit has caused levels of working capital in Matrix's two registered subsidiaries to fall below regulatory working capital requirements. Each of GWC and SEAMARK is registered as an investment fund manager and portfolio manager under Canadian securities laws. It is a condition of registration that these subsidiaries comply with regulatory working capital requirements.

Matrix has arranged for loan financing from Marquest Asset Management Inc. ("Marquest") in connection with the proposed business combination of Marquest and Matrix (the "Transaction"). To date, $1 million has been advanced to Matrix and Matrix anticipates that a further $2 million would be advanced in the near term. The parties are reviewing the structure of the business combination and the operations of the businesses going forward, including how to consolidate portfolio management and fund management activities into two of the three registered entities that exist now within the parties' respective corporate groups. To that end, Matrix is examining the steps required to consolidate the operations of GWC into SEAMARK for greater efficiency and to enhance Matrix's ability to maintain compliance with regulatory working capital requirements. Consolidating GWC's operations into SEAMARK would be subject to approval by the boards of directors or other governing bodies of managed venture capital funds and mutual funds and may be subject to regulatory approval. The Transaction remains subject to shareholder, stock exchange and regulatory approvals. There can be no assurance that the consolidation of operations will occur, that the Transaction will be completed on the terms proposed or at all or that anticipated loan advances will be made.

GWC and SEAMARK undertake portfolio and investment fund management activities for the venture capital funds, mutual funds and managed accounts that are managed by Matrix and its related companies, including Working Opportunity Fund (EVCC) Ltd., GrowthWorks Canadian Fund Ltd., GrowthWorks Commercialization Fund Ltd., GrowthWorks Atlantic Venture Fund Ltd. and the Matrix Group of Investment Funds.

There can be no assurance that either or both of GWC and SEAMARK will re-establish and maintain compliance with working capital requirements to the satisfaction of regulatory authorities. Failing to do so may result in these subsidiaries ceasing to hold the registrations necessary to provide fund and portfolio management services, which would have a material adverse effect on the Company's ability to operate and its financial position and future operating results.

Forward-looking statements: Certain statements in this press release are forward-looking statements, including statements about the ability of Matrix to re-establish and maintain compliance with regulatory working capital requirements and statements about the Transaction with Marquest and related financing arrangements. Forward-looking statements are based on beliefs and assumptions at the time the statements are made, including beliefs and assumptions about the ability of Matrix to successfully implement measures aimed at re-establishing compliance with regulatory working capital requirements, the outcomes of ongoing discussions with regulatory authorities regarding such requirements, the status of negotiations with Marquest surrounding the Transaction and related financing arrangements and the likelihood that conditions associated with the Transaction will be satisfied and that the Transaction will complete. While management considers these beliefs and assumptions to be reasonable based on information currently available to it, they are subject to numerous risks and uncertainties and no assurance can be given that such beliefs and assumptions will prove to be correct. Accordingly, actual results may differ significantly from those expressed or implied by forward-looking statements due to many factors including, but not limited to, risks associated with Matrix's working capital deficiency and its ability to restore and maintain compliance with working capital and other regulatory requirements and to continue to operate as a going concern and regulatory, market and other risks associated with completing the Transaction and associated financing arrangements. Many of these risks are beyond the control of Matrix. Other than as specifically required by law, Matrix undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results or otherwise.