TORONTO: C.A. Bancorp Inc. (the “Company”) is pleased to announce that a preliminary short form prospectus for a common share offering (the “Offering”) has been filed with the securities regulatory authorities in each of the provinces and territories of Canada. 

Use of proceeds:The Company intends to use the net proceeds of the Offering: (i) to fund direct investments; (ii) to establish, invest in and manage private equity funds and structured products; and (iii) for general corporate and working capital purposes.

C.A. Bancorp Inc's investment objectives and strategy : C.A. Bancorp Inc. is a merchant bank established to provide investors with access to a range of private equity and other alternative investment opportunities typically available only to large institutional and high-net-worth investors. The Company is focused on investments, either directly or through entities managed and/or sponsored by it, across a broad range of industries.

The Company’s business model is based on two types of revenue-generating investment activities:

• direct investing, to generate capital gains realized from the sale of investments and interest payments, management fees, syndication fees and dividends paid by portfolio companies; and
• fund management, to generate management fees and performance bonuses paid by private equity funds and structured products managed and/or sponsored by the Company.

The Company expects to focus on investment opportunities in the industrials, real estate, infrastructure and financial services sectors.

Sentry Select Capital Corp.: C.A. Bancorp Inc. is an affiliate of Sentry Select Capital Corp., a wealth management company providing investment, administrative and marketing services to 33 exchange-listed closed-end funds and corporations (including preferred securities and debentures), 16 mutual funds, 17 principal-protected notes and four flow-through limited partnerships. As of August 31, 2006, the firm had approximately $8.5 billion in gross assets under management.

Agents: A syndicate of agents includes National Bank Financial Inc., CIBC World Markets Inc., TD Securities Inc., BMO Nesbitt Burns Inc., Scotia Capital Inc., Blackmont Capital Inc., Canaccord Capital Corporation, HSBC Securities (Canada) Inc. and Raymond James Ltd.

More information:
Mark Gardhouse, President, C.A. Bancorp Inc.
Tel: 1-866-388-5985 Fax: 416-364-2398 info@cabancorp.com

The securities offered hereby have not been registered under the U.S. Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR TO BE DISSEMINATED IN THE UNITED STATES

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