Toronto: C.A. Bancorp Inc. (“C.A. Bancorp”) is pleased to announce that it has agreed to invest in a newly formed limited partnership (“the Partnership”) that will acquire a 360-unit apartment complex in Kitchener, Ontario (the “Kingswood Property”) for an aggregate purchase price of $23 million, before closing costs (the “Acquisition”). C.A. Bancorp will hold an 80% interest in the Partnership and Centurion Apartment Properties Limited Partnership (“Centurion L.P.”) will act as both the general partner and a limited partner holding the remaining 20% interest.

Property Description

The Kingswood Property is a freehold interest in eight garden-style apartment buildings on 16 acres of land, with an average of 45 units per building, located on Kingsway Drive in Kitchener, Ontario. The Kingswood Property is strategically located in the south end of Kitchener with excellent access to Highway 401, Highway 8, and the Conestoga Parkway. The buildings are comprised of one and two bedroom units and are presently over 99% leased. Upon closing of the Acquisition, it is the intention to upgrade both the property and units. The Kingswood Property will be managed by Centurion Property Asset Management, a property management company related to Centurion L.P., which currently manages over 800 apartment units in 23 locations in southern Ontario.

The Acquisition

C.A. Bancorp has agreed to invest $6.4 million, to acquire an 80% equity interest in the Partnership, with the residual $1.6 million equity interest invested by Centurion L.P. The balance of the $23 million purchase price will be financed by the assumption of three mortgages currently on the Kingswood Property. These mortgages will be non-recourse to C.A. Bancorp and are at below existing market rates. The Acquisition is expected to close on or about January 15, 2008.

The Acquisition is representative of C.A. Bancorp’s mandate in the real estate sector, providing shareholders with exposure to investments that are not readily accessible to the retail investor.

Centurion Apartment Properties Limited Partnership: Centurion L.P presently owns 820 apartment units within southern Ontario and is focused on the acquisition of apartment properties located in smaller Ontario markets.

C.A. Bancorp Inc.: C.A. Bancorp is a publicly traded Canadian merchant bank and alternative asset manager that provides investors with access to a range of private equity and other alternative asset class investment opportunities. C.A. Bancorp is focused on investments in small- and middle-capitalization public and private companies, with emphasis on the industrials, real estate, infrastructure and financial services sectors.

Trading information: C.A. Bancorp common shares trade on the Toronto Stock Exchange under the symbol BKP.

Tel: 1-866-388-5985 Fax: 416-364-2398 info@cabancorp.com

This news release contains forward-looking statements with respect to the proposed acquisition of an interest in the Kingswood Property, and matters concerning the business, operations, and strategy of C.A. Bancorp and Centurion L.P. These statements relate to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent C.A. Bancorp’s beliefs regarding future events. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur.

Often, but not always, forward-looking statements can be identified by the use of forward-looking words such as "will", "expect", "intend", "plan", "estimate", "anticipate", "believe" or "continue", similar words or the negative thereof. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations, including, but not limited to the ability of C.A. Bancorp to finalize the agreements with Centurion L.P. respecting the acquisition that the acquisition is completed. Additional, important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, conditions affecting the real estate markets, competition, changes in government regulation, inability to obtain any required regulatory licenses, approvals or financing, ability to complete the proposed upgrades to the Kingswood Property, interest rates and tax related matters. C.A. Bancorp cautions that undue reliance should not be placed on forward-looking statements as events and results could differ materially from those expressed or implied by forward-looking statements made by C.A. Bancorp.

Unless otherwise stated, all forward looking statements speak only as of the date of this news release. C.A. Bancorp does not undertake, and specifically disclaims, any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.