Mavrix Fund Management Inc. Results for Third Quarter 2007



    TSX Symbol: MVX

    All amounts are expressed in Canadian dollars.

    TORONTO, Oct. 31 /CNW/ - Mavrix Fund Management Inc. today released
unaudited financial results for the nine and three months ended September 30,
2007.

    
            REVIEW OF THE 9-MONTH PERIOD ENDED SEPTEMBER 30, 2007

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    ($ - except shares)                                2007          2006
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    Mavrix Mutual Funds                            508,842,218   506,118,640
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    Specialty Funds                                210,932,195   145,937,092
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    Total Assets Under Management (AUM)            719,774,413   652,055,732
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    Total Revenues                                   9,656,002     8,701,198
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    Total Expenses                                  11,720,591     9,473,189
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    Net Loss                                        (2,064,589)     (771,991)
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    Basic and Diluted Loss Per Share                     (0.24)        (0.10)
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    EBITDA(*)                                          123,904     1,176,603
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    EBITDA(*) Per Share                                   0.01          0.15
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    Shares Issued and Outstanding                    8,540,553     8,674,228
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    Shares Issued and Issuable(xx)                  10,315,246    11,628,029
    -------------------------------------------------------------------------

    (*) References to EBITDA are to earnings before interest, income taxes,
        depreciation and amortization. EBITDA is not a standardized earnings
        measure under GAAP. Management believes that in addition to net
        earnings, EBITDA is a useful supplemental measure as it provides
        investors with an indication of cash available for distribution,
        income taxes, working capital needs and capital expenditures.
        Investors should be cautioned, however, that EBITDA should not be
        construed as an alternative measure of liquidity and cash flows. The
        Company's method of calculating EBITDA may differ from other issuers
        and, accordingly, EBITDA may not be comparable to similarly titled
        measures used by other issuers.

    (xx)Shares Issued and Issuable is not a standardized measure under GAAP.
        Management believes that in addition to issued and outstanding,
        Shares Issued and Issuable is a useful supplemental measure as it
        provides investors with an indication of potential dilution of
        existing shareholdings. The Company's method of calculating Shares
        Issued and Issuable may differ from other issuers and, accordingly,
        Shares Issued and Issuable may not be comparable to similarly titled
        measures used by other issuers.
    

    Total AUM at September 30, 2007 was $719.8 million, up 10% from
$652.1 million at September 30, 2006. The increase is attributable to market
appreciation and fund sales. AUM was comprised of $508.8 million of Mavrix
Mutual Funds, up 1% from $506.1 million at September 30, 2006, and
$210.9 million of Specialty Funds, up 45% from September 30, 2008.
    Mavrix Mutual Funds had net sales of $19.3 million on gross sales of
$211.7 million for the first nine months of 2007. This compares to
$49.5 million in net sales on $207.4 million of gross sales for Mavrix Mutual
Funds for the same period in 2006.
    For the nine months ended September 30, 2007, revenue totalled
$9.7 million, up 11% compared to $8.7 million for the same period in 2006. The
year over year increase in revenues for the first nine months was the result
of the increase in AUM.
    EBITDA was $124 thousand for the nine months ended September 30, 2007,
compared to $1.2 million for the nine months in 2006. Net loss for the nine
months ended September 30, 2007 of $(2.1) million or $(0.24) per share,
compared to a net loss for the nine months ended September 30, 2006 of
$(772) thousand or $(0.10) per share.
    Shares issued and issuable for the nine months ended September 30, 2007
were 10.32 million, compared to 11.63 million for the same period in 2006.
Shares issued and issuable includes all shares issuable from stock options,
warrants, restricted stock units, and convertible securities.

    
            REVIEW OF THE 3-MONTH PERIOD ENDED SEPTEMBER 30, 2007

    -------------------------------------------------------------------------
    ($ - except shares)                                2007          2006
    -------------------------------------------------------------------------
    Total Revenues                                   3,135,770     2,750,257
    -------------------------------------------------------------------------
    Total Expenses                                   4,028,508     2,987,610
    -------------------------------------------------------------------------
    Net Loss                                          (892,738)     (237,353)
    -------------------------------------------------------------------------
    Basic and Diluted Loss Per Share                     (0.11)        (0.03)
    -------------------------------------------------------------------------
    EBITDA(*)                                          (38,965)      433,866
    -------------------------------------------------------------------------
    EBITDA(*) Per Share                                  (0.00)         0.05
    -------------------------------------------------------------------------
    

    As a result of the 10% year over year increase in AUM, total third
quarter revenue increased from $2.8 million in 2006 to $3.1 million in 2007.
EBITDA was $(39) thousand for the three months ended September 30, 2007,
compared to $434 thousand for the three months in 2006.
    Mavrix reported a net loss for the three months ended September 30, 2007
of $(892) thousand or $(0.11) per share, compared to a net loss for the three
months ended September 30, 2006 of $(237) thousand or $(0.03) per share.

    For detailed financial statements including Management's Discussion and
Analysis please refer to our website at www.mavrixfunds.com, or alternatively,
they can be e-mailed by contacting rsteele@mavrixfunds.com.

    %SEDAR: 00020385E




For further information:

For further information: Raymond M. Steele, Chief Operating Officer &
CFO, Mavrix Fund Management Inc., (416) 365-4071

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MAVRIX FUND MANAGEMENT INC.

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