GMP Capital Trust reduces its October distribution to $0.05 per Fund unit

    TORONTO, Oct. 21 /CNW/ - GMP Capital Trust (the "Fund") announced today
that, its Board of Trustees has approved a reduction to the Fund's monthly
cash distributions from $0.1042 per Fund unit to $0.05 per Fund unit ($0.60
per annum) commencing with the October 2008 distribution. "The severity of
prevailing volatile market conditions is the worst seen in several decades in
the Canadian capital markets and has been more prolonged than we and most
industry participants have expected. As such, the distribution rate is being
lowered to what we believe is a sustainable level over the medium-term in
light of these challenging times," said Kevin Sullivan, Chief Executive
    Commenting further on the announcement Mr. Sullivan said "Our response to
these challenging conditions has been timely and decisive. We have taken a
defensive stance, prudently reducing our monthly distributions in light of the
sustained market conditions. In addition, through a firm-wide cost
restructuring initiative implemented earlier this month and designed to reduce
operating expenses, 37 administrative and support staff positions primarily in
its Capital Markets and Wealth Management operating segments were discontinued
and, contemporaneously, the Fund implemented a 10 per cent fixed salary
reduction to certain senior level positions. Discretionary spending has also
been reduced. These coordinated efforts preserve capital, which along with our
variable compensation model allow us to better withstand the current business
environment. The Board of Trustees will continue to review the distribution on
an ongoing basis."
    The distribution for the month of October 2008 is expected to be paid to
unitholders of record at the close of business on October 31, 2008, and will
be payable on November 20, 2008. A cash distribution of $0.05 per Fund unit
for the month of October 2008 to be paid on November 20, 2008, was also
declared to holders of the Class B limited partner units of Griffiths McBurney


    GMP Capital Trust carries on business through the following principal
entities: GMP Securities L.P., Griffiths McBurney Corp., GMP Securities Europe
LLP, GMP Private Client L.P., EdgeStone Capital Partners, L.P. and GMP
Investment Management L.P. GMP Securities L.P. is a leading independent
Canadian investment dealer focused on investment banking and institutional
equities for corporate clients and institutional investors. GMP Securities
L.P. can be found on the web at Griffiths McBurney Corp.
services institutional clients in the United States while GMP Securities
Europe LLP provides investment banking and institutional equity services to
clients located in Europe. GMP Private Client L.P. is a full-service
investment firm focused on high-net-worth private investors that provides
wealth preservation, income and growth strategies delivered by seasoned
investment advisors. GMP Private Client L.P. can be found on the web at EdgeStone Capital Partners, L.P. is one of Canada's
leading private equity firms, providing capital, strategic direction and
business and financial advice to help promising mid-market and early stage
companies achieve their full potential. EdgeStone Capital Partners, L.P. can
be found on the web at GMP Investment Management L.P., through
its private funds, seeks to generate superior risk-adjusted investment returns
over the long term by executing selected investment strategies. GMP Investment
Management L.P.'s offerings are aimed at both high-net-worth individuals and
institutional investors. GMP Capital Trust is listed on the Toronto Stock
Exchange under the symbol GMP.UN. The website is GMP
Capital Trust has offices in Toronto, Calgary, Montreal, Vancouver, Geneva,
Switzerland, and London, England.

    This press release may contain "forward-looking statements" (as defined
under applicable securities laws) concerning anticipated future events,
results, circumstances, performance or expectations that are not historical
facts but instead represent our beliefs, expectations, estimates and
projections regarding future events, many of which, by their nature, are
inherently uncertain and beyond our control. These statements are not
guarantees of future performance and are subject to numerous risks and
uncertainties, including those described in the Fund's regulatory filings,
which are available on the Fund's website at and on SEDAR
at The Fund Group's primary business activities, by their nature,
are both competitive and subject to various risks. These risks include market,
credit, liquidity, operational and regulatory risks and other risk factors
including, without limitation, variations in the value of securities, the
volatility and liquidity of equity trading markets, the volume of new
financings and mergers and acquisitions, competition in the marketplace for
suitable investments, sustainability of fees, nature and type of portfolio
company investments, ability to realize carried interest entitlements and
dependence on key personnel. Other factors, such as general economic
conditions also may have an impact on the Fund Group's results of operations.
Many of these risks and uncertainties can affect our actual results and could
cause our actual results to differ materially from those expressed or implied
in any forward-looking statement made by us or on our behalf. Except as
required by applicable law, we undertake no obligation to publicly update or
revise any forward-looking statement, whether as a result of new information,
future events or otherwise.

For further information:

For further information: GMP Capital Trust: Rocco Colella, Director,
Investor Relations, 145 King Street West, Suite 300, Toronto, Ontario, M5H
1J8, Tel: (416) 941-0894, Fax: (416) 943-6175,;

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