C.A. Bancorp Responds to Maxam’s Announcement and Strongly Advises Shareholders NOT to Tender to the Maxam Offer

TORONTO, ONTARIO -- C.A. Bancorp Inc. (TSX: BKP) (“C.A. Bancorp” or the “Company”) wishes to provide an update to shareholders in response to the public announcement by Maxam Acquisition Corporation (“Maxam”) of the variation and extension of Maxam’s hostile take-over bid.

As previously disclosed, C.A. Bancorp’s Board of Directors (the “Board”) and Special Committee, together with the Company’s management and financial and legal advisors, are undertaking a strategic process following Maxam’s initial offer.

As part of that process the Company is actively engaged in discussions with a number of interested third parties to maximise value for shareholders. The Company’s strategic review process may require some time to conclude, and there can be no assurance that any alternative transaction will result from the Company’s strategic process.

Maxam was invited to participate in the process on the same terms as other participants but Maxam declined to do so. Maxam’s varied offer remains subject to the same extensive and highly discretionary conditions as its initial offer.

C.A. Bancorp shareholders are strongly advised to not tender to the Maxam offer before the Board and its advisors have had an opportunity to fully explore all available alternatives. Maxam’s revised offer does not expire until February 2nd, and there is no advantage to tendering prior to the deadline under the revised offer. Prior to the expiry of the extended Maxam offer the Board will be providing a formal response with a recommendation to shareholders.

Availability of the Directors’ Circular
Shareholders are reminded to read the Board’s Directors’ Circular in its entirety. The document is available free of charge on SEDAR at www.sedar.com and on C.A. Bancorp’s website at www.cabancorp.com. Copies of the Directors’ Circular have been mailed to all C.A. Bancorp shareholders.

For Investor Questions
Shareholders who have questions may do so by contacting the Company’s information agent, Kingsdale Shareholder Services Inc., toll free at 1-888-518-1556, or by e-mail at contactus@kingsdaleshareholder.com.

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.

More information: Paolo De Luca, Chief Financial Officer
Tel: 1-866-388-5985
Fax: 416-861-8166

This news release contains forward-looking statements. 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. Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are based on a number of assumptions which may prove to be incorrect. These cautionary statements qualify all forward-looking statements attributable to C.A. Bancorp and persons acting on its behalf relating to the subject matter of this press release. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release. C.A. Bancorp does not undertake, and specifically disclaims, any intention or obligation to update or revise any of such forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.