ACE Aviation Holdings Inc. announces final results of its substantial issuer bid



    MONTREAL, June 18 /CNW Telbec/ - ACE Aviation Holdings Inc. (ACE)
(TSX: ACE.A, ACE.B) today announced the final results of its offer to purchase
Cdn$500 million of its Class A Variable Voting Shares and Class B Voting
Shares, which expired at 5:00 p.m. (Montreal time) on June 18, 2008. Based on
final reports from CIBC Mellon Trust Company, the depositary under the offer,
ACE confirmed that it has taken up and accepted for purchase and cancellation
a total of 12,537,084 Class A Variable Voting Shares and 10,190,187 Class B
Voting Shares at Cdn$22.00 per share for an aggregate purchase price of
Cdn$500 million in accordance with the terms of the offer. No Convertible
Preferred Shares of ACE were deposited on an as converted basis under the
offer.
    The final pro ration factor that has been applied to the Class A Variable
Voting Shares and Class B Voting Shares deposited under the offer is
approximately 90.3%. As a result, shareholders who deposited Class A Variable
Voting Shares or Class B Voting Shares at a purchase price at or below
Cdn $22.00 per share or pursuant to purchase price tenders will have
approximately 90.3% of their Class A Variable Voting Shares or Class B Voting
Shares purchased at the purchase price, subject to adjustment for odd lots and
to avoid the creation of fractional shares. Class A Variable Voting Shares and
Class B Voting Shares deposited at purchase prices in excess of Cdn$22.00
per share will not be taken up and purchased by ACE under the offer.
    Payment to the depositary for the Class A Variable Voting Shares and
Class B Voting Shares taken up and purchased by ACE under the offer will be
made by June 23, 2008. Class A Variable Voting Shares and Class B Voting
Shares not validly deposited under the offer will be returned to shareholders
as promptly as possible.
    For the purposes of subsection 191(4) of the Income Tax Act (Canada), the
"specified amount" in respect of each Class A Variable Voting Share purchased
under the offer is Cdn$21.71 and the "specified amount" in respect of each
Class B Voting Share purchased under the offer is Cdn$22.08.
    For Canadian tax purposes a deemed dividend of Cdn$22.00 per Class A
Variable Voting Share and Class B Voting Share arises in respect of each Class
A Variable Voting Share and Class B Voting Share purchased under the offer.
For the enhanced dividend tax credit, under subsection 89(14) of the Income
Tax Act (Canada) and for any corresponding provincial legislation, ACE
designates the entire amount of Cdn$22.00 per Class A Variable Voting Share
and Class B Voting Share as an "eligible dividend".

    ABOUT ACE AVIATION HOLDINGS INC.

    ACE is a holding company of various aviation interests including Air
Canada and ACTS.
    %SEDAR: 00020954EF




For further information:

For further information: Isabelle Arthur (Montréal), (514) 422-5788;
Angela Mah (Vancouver), (604) 270-5741; Peter Fitzpatrick (Toronto), (416)
263-5576


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