Report on Regulatory Field Audit of GrowthWorks Capital Ltd.

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 19, 2013) - Matrix Asset Management Inc. ("Matrix") (TSX:MTA) reports that it received correspondence from the British Columbia Securities Commission ("BCSC") regarding a compliance field audit conducted by the BCSC in respect of a Matrix subsidiary, GrowthWorks Capital Ltd. ("GWC"). Portfolio managers like GWC and other registrants subject to securities laws are required to undergo periodic field audits whereby securities regulators assess the registrant's operations, systems of compliance and internal controls against the regulatory requirements of securities legislation.

The BCSC correspondence relates to GWC's management activities in respect of GrowthWorks managed retail venture capital funds. The BCSC identified deficiencies in GWC's system of compliance procedures and internal controls. GWC strongly disagrees with the BCSC's characterization of GWC's activities. However, GWC intends to cooperate with the BCSC. As an initial step, the BCSC requested that GWC provide undertakings with respect to transactions between GrowthWorks managed funds and other matters. GWC will confer with the Boards of Directors of the affected funds with respect to the undertakings requested by the BCSC. GWC does not expect that the undertakings would have a material impact on its operations or any of its managed funds.

GWC believes that it has complied with all requirements under applicable securities legislation, however there can be no assurance that the compliance field audit will not result in the BCSC initiating regulatory proceedings. At this time, Matrix cannot determine what further regulatory action, if any, may be pursued. If further regulatory action is pursued, the outcomes of such regulatory action may have an adverse effect on the operations, financial results and prospects of Matrix and on funds managed by GWC and its related companies.

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