TORONTO: C.A. Bancorp Canadian Realty Finance Corporation (the “Corporation”) is pleased to provide an investment update to its shareholders.  The class A shares of the Corporation are 100% owned by C.A. Bancorp Inc. (TSX: BKP).

The Corporation was created to obtain exposure to an investment portfolio of mortgages and loans in the Canadian commercial real estate sector held by C.A.B. Realty Finance L.P. (the “Partnership”).  The Corporation, through the Partnership, had approximately $43 million of capital to invest in commercial real estate mortgages and loans.

To date, the Partnership has funded approximately $23 million, with another approximately $9 million committed but not yet funded for a total of approximately $32 million or 74% of the capital available to invest.  The average effective rate of interest including fees is 11.2% on the funded loans and 11.4% on the funded and committed loans.

The Corporation is pleased to report that it is fulfilling its investment mandate ahead of schedule and expects to be fully invested by July or August of 2008.  Management is satisfied with the credit quality of the loans funded and committed to date.  All loans, with the exception of one, contain personal guarantees of the principal shareholders and/or supporting corporate guarantees.  As of today’s date, all mortgages and loans are in good standing and all payments are current.

The following table provides a breakdown by loan type and geography of the Partnership’s portfolio of funded and committed loans:

The Corporation’s Preferred Shares, Series I: The Corporation’s investment objectives with respect to the preferred shares, series I (the “Preferred Shares”) are to:

(i) provide fixed, cumulative preferential quarterly cash distributions in the amount of $0.4219 per Preferred Share, representing a yield of 6.75% per annum on the issue price of $25.00; and
(ii) return the original issue price of the Preferred Shares after 10 years.
Distributions on the Preferred Shares are expected to comprise primarily returns of capital or capital gains dividends. 

The Corporation believes the Preferred Shares are a good investment alternative for fixed income investors seeking a higher after-tax yield relative to traditional Government of Canada bonds and guaranteed investment certificates (“GICs”).

Trading information: The Corporation’s Preferred Shares trade on the Toronto Stock Exchange under the symbol RF.PR.A.

C.A. Bancorp Canadian Realty Finance Corporation: The Corporation is a mutual fund corporation incorporated under the laws of the Province of Ontario. The Corporation was created to obtain exposure to the investment performance of an actively managed portfolio of secured loans and investments in the Canadian commercial real estate sector on a tax efficient basis. The Corporation was funded through the issuance of $38.5 million of Preferred Shares and $7.85 million of subordinate Class A shares.

C.A. Bancorp Inc.: C.A. Bancorp Inc. (TSX: BKP) 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 Inc. 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.

C.A Bancorp Inc. is the sole shareholder of Class A shares of the Corporation and manages the Corporation through its wholly-owned subsidiary C.A. Bancorp Ltd.

More information: For more information about the Corporation, please contact:
Michael Lovett, Managing Director, Real Estate Capital at (416) 214-5985 ext. 619 or   mlovett@cabancorp.com

For more information about C.A. Bancorp Inc., please contact: Paolo De Luca, Chief Financial Officer  pdeluca@cabancorp.com at (416) 214-5985 ext. 510 or pdeluca@cabancorp.com

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This news release contains forward-looking statements with respect to matters concerning the business, operations, commitments and strategy of the Corporation. These statements relate to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent the Corporation’s beliefs regarding future events. 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, or variations of such words and phrases that certain actions, events or anticipated outcomes "may", "would" or "might" be taken, occur or be achieved. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur.

The Corporation cautions that risk factors discussed in applicable continuous disclosure filings required by law that the Corporation has made and filed on SEDAR should also be considered carefully and that undue reliance 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 the Corporation due to factors including, but not limited to, the timing and completion of funding of committed loans and the time required for the Corporation to become fully invested. The cautionary statements qualify all forward-looking statements attributable to the Corporation and persons acting on its behalf. Readers are cautioned to assess both risk and return before making their investment decisions.

Unless otherwise stated, all forward-looking statements speak only as of the date of this news release. The Corporation 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.