Global Diversified Investment Grade Income Trust - Net Asset Value as at December 31, 2007 - Extension of Standstill Agreement with MMAI-I Trust



    MONTREAL, Feb. 11 /CNW Telbec/ - Global Diversified Investment Grade
Income Trust ("Global DIGIT") (TSX: DG.UN) announces that its net asset value
("NAV") per unit as at December 31, 2007, based on an indicative price
received from Deutsche Bank A.G. (the "Bank"), is estimated to be $7.56 on a
non-consolidated basis (unaudited).
    Global DIGIT is in the process of completing its annual consolidated
financial statements for the year ended December 31, 2007. In accordance with
Canadian generally accepted accounting principles ("GAAP"), Global DIGIT
consolidates its financial statements with those of MMAI-I Trust ("MMAI"), a
variable interest entity under GAAP. This requires taking into account for
purposes of computing the NAV, inter alia, the mark-to-market value of the
three AAA swaps (the "MMAI AAA Swaps") between MMAI and the Bank, even though
Global DIGIT is not a party to the MMAI AAA Swaps, has no economic interest in
them and has no legal liability under them. On a consolidated basis, the NAV
per unit is estimated to be negative $8.94 (unaudited) as at December 31, 2007
based on the indicative price received from the Bank. The primary reason for
the difference in the NAV on a consolidated and non-consolidated basis is the
mark-to-market value of the MMAI AAA Swaps.
    Unitholders are reminded that they cannot be exposed to losses greater
than their investment, whether or not the NAV is negative.
    The Trustees consider that, in the present circumstances and for the
reasons set out above, the NAV calculated on a non-consolidated basis reflects
the economic situation of Global DIGIT as at December 31, 2007. Furthermore,
as previously announced on December 24, 2007, Global DIGIT has entered into an
Agreement in Principle with MMAI pursuant to which MMAI would effectively be
replaced by the Bank as counterparty to the three credit default swaps (the
"GD Swaps") that are presently between Global DIGIT and MMAI (the
"Disengagement Transaction"). If and when the Disengagement Transaction is
completed, the NAV will no longer be presented on a consolidated basis with
MMAI. There can be no assurances, however, that the Disengagement Transaction
will be completed. In particular, the Disengagement Transaction is largely
dependant on the approval of the restructuring plan for third party
asset-backed commercial paper, as contemplated in the press release dated
December 23, 2007 issued by the Pan-Canadian Investors Committee for Third
Party Structured Asset Backed Commercial Paper.
    On a non-consolidated basis, substantially all of the assets of Global
DIGIT consist of the GD Swaps and the related collateral, entered into with
MMAI. MMAI, in turn, has entered into three mirror credit default swaps with
the Bank. MMAI has also entered into the MMAI AAA Swaps with the Bank, in
respect of which, and in order to purchase the necessary collateral, MMAI
issued asset-backed commercial paper ("ABCP"). Since August 13, 2007, MMAI has
been unable to roll over its maturing ABCP and has ceased making payments on
such maturing ABCP. Since that date, MMAI has also deposited all amounts owed
to Global DIGIT under the GD Swaps in an escrow account pursuant to the
Standstill Agreement entered into by Global DIGIT and MMAI, as disclosed in
the press release issued on September 28, 2007.
    The NAV calculated on a non-consolidated basis as at December 31, 2007
reflects all amounts that would have been paid by MMAI to Global DIGIT under
the GD Swaps under normal circumstances but which are currently being held in
escrow and not being paid. The unpaid amounts have been recorded as accounts
receivable.
    The NAV on a particular date is equal to the aggregate value of the
assets of Global DIGIT, less the aggregate value of its liabilities. The NAV
does not reflect any potential write-down resulting from the interruption of
payments of MMAI to Global DIGIT under the GD Swaps, nor does it reflect any
potential impairment in the value of the assets of Global DIGIT from any
potential restructuring of MMAI debts or the effect of the proposed
Disengagement Transaction, as it is not possible at present to determine if,
when and to what extent such payments to Global DIGIT under the GD Swaps will
resume or the effect of any potential restructuring of any such MMAI debts,
nor if and when the proposed Disengagement Transaction will be completed .

    Extension of Standstill between Global DIGIT and MMAI

    Further to the February 4 press release of the Pan-Canadian Investors
Committee for Third Party Structured Asset Backed Commercial Paper announcing,
in connection with a proposed framework to restructure third party ABCP, an
extension until February 22, 2008, of the standstill arrangements which were
the foundation of the Montreal Accord, Global DIGIT further announces that the
standstill agreement entered into with MMAI on September 27, 2007 has also
been similarly extended.
    Consequently, the previously announced suspension of distributions and
redemptions will continue until conditions otherwise allow for their
resumption, which is the objective of the Trustees.

    About Global DIGIT

    Global DIGIT provides an economic interest in a mezzanine tranche of
credit default swap in respect of portfolios of synthetic corporate exposures,
mortgage-backed securities, asset-backed securities and structured finance
securities.

    About MMAI

    MMAI is a special purpose vehicle rated R-1(high) (short-term) and AAA
(long-term) (such rating being currently under review with developing
implications) by DBRS that funds the purchase of eligible assets by issuing
asset-backed commercial paper, extendible commercial paper and floating rate
notes.




For further information:

For further information: François Rivard, (514) 879-6405,
http://info.fbn.ca/trusts

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Global Diversified Investment Grade Income Trust

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