Coventree Comments on Results of Pan-Canadian Investors Committee RFP for an Administrator



    Toronto Stock Exchange Symbol: COF

    TORONTO, Feb. 1 /CNW/ - Coventree Inc. (TSX: COF) ("Coventree" or the
"Company") today announced that its Administration business unit will not be
the administrator and asset manager of the asset-backed commercial paper
("ABCP") conduits administered by Coventree and others following completion of
the restructuring of such conduits proposed by the Pan-Canadian Investors
Committee (the "Investors Committee").
    In conjunction with its December 23, 2007 announcement of a plan for
restructuring the ABCP issued by the conduits affected by the Montreal Accord,
the Investors Committee advised Coventree that it intended to: (a) ask all
existing sponsors of affected ABCP conduits, including Coventree, to
facilitate their replacement as administration and securitization agent; and
(b) appoint one entity to serve as the administrator and asset manager of all
such conduits. In early January 2008, the Investors Committee asked several
groups, including Coventree, among others, to submit a written proposal (the
"RFP") for the role of post-restructuring administrator and asset manager. In
response to the RFP, Coventree actively participated in and supported a
proposal to the Investors Committee that involved Coventree's Administration
business unit being acquired by a Coventree-supported bidder who would provide
the required services. Earlier today, Coventree's-supported bidder was advised
that, after giving careful consideration to all proposals received, the
Investors Committee selected another proposal. Although both Coventree and the
bidder it supported are disappointed with the decision, Coventree plans to
work with the winning bidder to effect an orderly transition of its current
role as administration agent for the Coventree-sponsored conduits. Although it
is expected to proceed, the restructuring is not a certainty.
    The termination of Coventree's role as administration agent of the ABCP
conduits sponsored by Coventree will result in the cessation of substantially
all of the business activity currently carried on by Coventree's
Administration business unit. The only business that will remain is the
administration of conduits sponsored by parties other than Coventree. However,
Coventree believes that it is likely that, as a result of the Investors
Committee decision described above, such third parties will seek to transfer
the administration of their conduits from Coventree Administration to other
administrators. Accordingly, it is likely that, on or shortly after the
completion of the restructuring plan proposed by the Investors Committee (the
"Restructuring Plan"), the Administration business unit will have no further
business to carry on.
    Previously, the Company announced that the Special Committee of the
Company's board of directors formed to explore and consider strategic options
to maximize value for shareholders had reviewed and considered the future
viability of each of the Company's three existing business units and had
concluded that, regardless of whether the Investors Committee restructuring
proposal is implemented, the Capital Markets business unit was no longer
viable, and that no further investments would be made under the Investments
business unit. The Special Committee has now concluded that, in view of the
decision made by the Investors Committee described above and the likely
implications of that decision, the Administration business unit is also no
longer viable. Pending the implementation of the Restructuring Plan, the
Company will work with the Investors Committee and its agents to ensure that
the Coventree-sponsored ABCP conduits continue to be administered effectively
on behalf of noteholders and other stakeholders. Although the Special
Committee is continuing to review strategic options for the Company, the range
of options that remain under consideration are limited and will likely
involve, among other things, the orderly windup of the Company's operations
pending implementation of the Restructuring Plan.
    As previously announced, the Company's revenue has been, and is expected
to continue to be, significantly reduced as a result of the disruption in the
Canadian ABCP market that occurred on August 13, 2007 and still continues
today (the "Market Disruption"). The Company's revenues are no longer expected
to cover expenses in light of decreasing interest rates. In addition,
Coventree is currently reviewing its expense levels as a result of the Special
Committee's decision that the Administration business unit is no longer
viable, including the implementation of further cost reductions in order to
further realign the Company's cost structure with its revenues. Accordingly,
there can be no assurance that Coventree's revenue will continue to be
sufficient to cover the costs of continuing to support the restructuring
efforts of the Investors Committee and to perform its responsibilities as
administrator of the conduits sponsored by Coventree and others.

    Forward-Looking Statements
    --------------------------
    This press release includes certain forward-looking statements, including
those identified by the expressions "may", "would", "could", "will",
"anticipate", "believe", "plan", "forecast", "estimate", "expect", "intend",
"aim", "vision", "mission", "endeavour" and similar expressions to the extent
they relate to Coventree or management. The forward-looking statements are not
historical facts but reflect Coventree's current expectations regarding future
results or events based on information currently available to Coventree.
    These forward-looking statements are subject to a number of known and
unknown risks, uncertainties and assumptions. Many factors could cause actual
results, performance or events to differ materially from current expectations
that may be expressed or implied by such forward-looking statements,
including, without limitation, the matters discussed under "Risks and
Uncertainties" contained on pages 21 to 24 of the Company's Management
Discussion and Analysis for the year ended September 30, 2007 which is
available under the Company's profile on SEDAR at www.sedar.com. Should one or
more of these risks or uncertainties materialize, or should assumptions
underlying the forward-looking statements prove incorrect, actual results,
performance or achievements could vary materially from those expressed or
implied by the forward-looking statements contained in this report. These
factors should be considered carefully and prospective investors should not
place undue reliance on the forward-looking statements. Although the
forward-looking statements contained in this press release are based upon what
Coventree currently believes to be reasonable assumptions, Coventree cannot
assure prospective investors that actual results, performance or achievements
will be consistent with these forward-looking statements. These
forward-looking statements are made as of the date of this press release and
Coventree does not intend, and does not assume any obligation, to update or
revise these forward-looking statements.

    About Coventree
    ---------------
    Prior to the Market Disruption, Coventree was a financial services
company focused on specialized niches. Coventree's principal business
operations are currently in two business segments - Coventree Capital & Admin
and Coventree Investments. Coventree Capital & Admin is comprised of two
businesses, the Capital Markets business and the Administration business.
Prior to the Market Disruption, the Capital Markets business specialized in
structured finance using securitization-based funding technology. The
Administration business provides services to ABCP trusts sponsored by the
Company and by third parties. Prior to the Market Disruption, Coventree
Investments made strategic investments in synergistic businesses.

    %SEDAR: 00024386E




For further information:

For further information: Craig Armitage, The Equicom Group Inc., Tel:
(416) 815-0700 x278, Email: carmitage@equicomgroup.com

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