Canaccord Capital Inc. announces Paul Reynolds as CEO, Peter Brown remains as Chairman, and reports record fiscal first quarter 2008 results



    Announces 25% Dividend Increase

    (All dollar amounts are stated in Canadian dollars unless otherwise
    indicated)

    VANCOUVER, Aug. 1 /CNW/ - On behalf of the Board of Directors, Peter
Brown, Chairman of Canaccord Capital Inc. (TSX & AIM: CCI) is pleased to
announce that Paul Reynolds has been appointed CEO effective August 1, 2007.
After 40 years of successful leadership, Peter Brown is pleased with the
seamless transition of this role to Paul Reynolds, who has been with the firm
for over 22 years. As Chairman, Peter Brown looks forward to actively
supporting Paul Reynolds, Mark Maybank and Brad Kotush as the firm continues
to move forward. He will also represent the interests of both our internal and
external shareholders. "We're proud that our leadership succession has been
accomplished entirely from within the organization," said Peter Brown. "This
is a young and dynamic team that shares the goals and values upon which we've
built Canaccord."
    Canaccord Capital Inc.'s revenue for the first quarter of fiscal year
2008, ended June 30, 2007, was a record $245.9 million, up 19.3% from the same
quarter a year ago. Net income for the first quarter was also a record
$39.0 million, up 50.4% and diluted earnings per share (EPS) of $0.80 was up
48.1% from the same period a year ago. Commenting on the quarter, Paul
Reynolds, President and CEO said "These record levels of revenue and
profitability reflect excellent execution across our geographies, business
lines and focus sectors during the first three months of our fiscal year."

    Highlights of the fiscal first quarter 2008 results (three months ended
    June 30, 2007) compared to the fiscal first quarter 2007 results (three
    months ended June 30, 2006):

    
    -   Revenue of $245.9 million, up 19.3% or $39.8 million from
        $206.1 million
    -   Expenses of $187.2 million, up 12.1% or $20.3 million from
        $166.9 million
    -   Net income of $39.0 million, up 50.4% or $13.1 million from
        $25.9 million
    -   Diluted EPS of $0.80, up 48.1% or $0.26 from $0.54
    -   Return on Equity (ROE) of 41.2%, up from 34.7%
    -   Working capital increased by 4.8% to $303.7 million from
        $289.7 million
    -   Book value per diluted common share for the period end was $7.96, up
        22.7%, or $1.47, from $6.49
    -   Supported by Canaccord's results, the Board of Directors approved a
        quarterly dividend increase of $0.025 or 25% per share to $0.125 per
        share on August 1, 2007, payable on September 10, 2007 with a record
        date of August 24, 2007.

    Highlights of Operations:

    -   Canaccord Adams, our capital markets team, led 64 transactions(1)
        globally to raise total proceeds of more than $2.6 billion during
        Q1/08
    -   During Q1/08, Canaccord Adams led and co-led the following equity
        transactions:
        -  $614.5 million on AIM for Aricom
        -  $201.2 million on TSX for Eastplats Eastern Platinum Limited
        -  $201.1 million on TSX for SentrySelect Primary Metals Corp.
        -  $161.0 million on TSX-V for Holloway Lodging REIT
        -  $105.0 million on TSX for InStorage REIT
        -  $104.9 million on TSX and AIM for Oriel Resources Plc.
        -  $100.8 million on TSX for Aura Gold
        -  $92.0 million on TSX for Artis REIT
        -  $65.0 million on TSX for Killam Properties
    -   During Q1/08, Canaccord Adams led its first transaction from China on
        the TSX-V totalling $75.0 million for Hanwei Energy Services Corp.
    -   Including the led and co-led transactions referred to above,
        Canaccord Adams participated in a total of 116 transactions(1)
        globally to raise gross proceeds of more than $9.6 billion during
        Q1/08. Of this:
        -  Canada participated in 95 transactions, which raised $6.9 billion
        -  UK participated in 8 transactions, which raised $1.7 billion
        -  US participated in 13 transactions, which raised $1.0 billion
    -   Canaccord Adams advised UrAsia on its $3.4 billion acquisition by
        Uranium One Inc. and was the exclusive advisor for Holloway Lodging
        REIT on a $215.0 million acquisition of Pomeroy Group
    -   Assets under administration (AUA) of $15.7 billion, up 12.6% from the
        same period a year ago, and up 4.6% from Q4/07
    -   Assets under management (AUM)(2) of $815 million, up 14.5% from the
        same period a year ago, and up 1.0% from Q4/07
    -   As of June 30, 2007, Canaccord had 440 Investment Advisors, up 10
        from the same period a year ago

    (1) Transactions over $1.5 million
    (2) AUM has been reclassified commencing in Q1/07, to include all assets
        managed on a discretionary basis under our programs generally
        described as or known as the Independence Accounts, Separately
        Managed Accounts, and Advisor Managed Accounts offered by Canaccord
    

    LETTER TO SHAREHOLDERS

    We are pleased to report two important accomplishments during the first
quarter of fiscal 2008. First, the management transition announced last August
was completed as planned and will be announced at this year's Annual General
Meeting. Second, solid execution in Canada, the US and UK, and across most of
our seven focus sectors, drove record levels of revenue and profitability for
the first three months of the fiscal year.
    Effective with the Annual General Meeting on August 2, 2007, the roles of
Chairman and CEO will be separated. Peter Brown continues as Chairman of the
Board, and as a member of the Executive committees. Paul Reynolds, President
of Canaccord since August 2006, adds the responsibilities of Chief Executive
Officer. Mark Maybank and Brad Kotush - our Chief Operating Officer and Chief
Financial Officer, respectively - have held their positions since 2006.
    This leadership succession combined with Canaccord's other senior
managers, gives us a dynamic executive team with both a strong unified and
strategic vision and the operating experience to make it a reality. In our
view, Canaccord's excellent financial performance is a direct result of an
entrepreneurial business culture that shares common goals and values. We have
a diverse and deeply talented team in all our geographies and disciplines, in
all age groups. It is this depth that produces these outstanding results.
    Additionally, we have now launched our new long term incentive plan
(LTIP). This program results in senior producers and management receiving a
portion of their compensation which would otherwise be paid in cash in the
form of Canaccord shares subject to vesting requirements. The significance of
this program is the alignment of employee and external shareholder interests.
We believe that the LTIP program will also increase our employee ownership
over time.

    Record financial performance

    The strong performance we saw in Canaccord's last quarter of fiscal 2007
continued during the first quarter of the new fiscal year. Net income reached
$39 million, an increase of more than 50% from the same period last year;
diluted earnings per share rose 48% to $0.80 from $0.54 in the comparable
quarter of fiscal 2007. Revenues increased by more than 19% to $246 million in
the first three months of fiscal 2008, driven by stronger markets across all
geographies as well as continuing success in serving the needs of our
corporate, institutional and retail clients with ideas that count. We held
expenses to a 12% increase year over year, which gave us meaningful operating
leverage in each of Canaccord's business groups. Based on these results, we've
increased our dividend by 25% per share, to $0.125 per share commencing this
quarter. Canaccord intends to pay $0.125 for each quarter in fiscal 2008.

    Continued growth in our capital markets activity

    In aggregate, Canaccord Adams enjoyed excellent performance during the
first quarter of fiscal 2008, with continuing strength in our capital markets
activities. Globally, the division led 64 transactions over $1.5 million,
raising $2.6 billion in proceeds. Of particular note was the largest
transaction ever led by Canaccord - a $614.5 million offering for Aricom on
the AIM.
    Canaccord Adams' Canadian operations delivered outstanding results during
the quarter. The division's capital markets revenues surged more than 46% to
$62.5 million compared to the first quarter of fiscal 2007. Continuing gains
in market share, as well as high demand for our corporate finance product,
drove the increase in revenues.
    In the United Kingdom and Other Foreign Location, Canaccord Adams'
revenues totaled $57.4 million, an increase of over 17% from the comparable
quarter in fiscal 2007. This reflects higher financing activity, particularly
in the resource sectors. We are a leading broker and Nomad in the UK and well
positioned to benefit when underwriting activity broadens beyond the current
enthusiasm for mining and metals offerings. Our new 11 member Investment Trust
team is now fully engaged. This development enhances our existing trading
expertise as well as expands our sectors under coverage with the addition of
investment trusts. We expect this team to bring us new opportunities to serve
a growing sector in the UK.
    We continue to be optimistic about Canaccord Adams' prospects in the
United States. Revenues for the first quarter of fiscal 2008 advanced nearly
12% from a year ago to $25.3 million, with notable contributions from our
expanded Life Sciences practice. We also saw strength in Resource Optimization
and Sustainability, and Industrial Technology. Our corporate finance
initiative is succeeding. The US had its best quarter ever, and June was a
record banking month. Our team entered the second quarter of fiscal 2008 with
a solid pipeline of opportunities that it is pursuing aggressively. In early
August, we will hold our annual Global Growth Conference in Boston. This is
the 27th year for this popular event, which brings more than 1000
institutional investors together with private equity firms and presenting
companies from the US, Canada and the UK.

    Solid gains in Private Client Services

    Canaccord Investment Advisors (IAs) took advantage of strong equity
markets, particularly for commodity-related issues, during the quarter.
Revenue for the first three months of fiscal 2008 advanced more than 5% to
$76.1 million compared to a very strong first quarter of fiscal 2007. Reduced
overhead expenses contributed to solid gains in the division's income before
income taxes and corporate allocations, which rose 11% to $18.9 million
compared to the same quarter a year ago.
    The market for recruiting new IAs remained very competitive during our
first quarter. Year over year, we have net additions of ten new advisors
bringing our total number to 440. Assets under administration rose 12.6% from
the same period a year ago to $15.7 billion primarily due to stronger equity
markets, bringing average book size to $35.7 million.
    We are also pleased to report continuing overall growth in our
discretionary asset management programs, which include the Independence
Accounts, Separately Managed Accounts (SMA) and Advisor Managed Accounts
(AMA). The value of the SMA and AMA assets is now of a size that we believe
they should be included with our Independence Accounts in our determination of
assets under management (AUM). As a result, AUM has now been reclassified
commencing in the first quarter of fiscal 2007. For the first quarter of
fiscal 2008, AUM totaled $815 million, an increase of 14.5% year over year.

    Business outlook

    We entered the second quarter of the fiscal year with a healthy pipeline
of new opportunities in all our businesses. We expect to see continued demand
for global commodities as well as growing strength in the US technology cycle.
These trends are likely to drive robust mergers and acquisitions activity and
continuing strength in equity markets.
    We are proud to lead a dynamic team of men and women with a deep
dedication to delivering ideas that count for clients and shareholders alike.
The success of Canaccord's strategy of becoming a diversified, global
investment firm focused on growth is largely in their hands, and we look
forward to continuing our work with them to achieve that goal.

    
    Peter M. Brown              Paul D. Reynolds
    Chairman                    President & Chief Executive Officer
    

    ACCESS TO QUARTERLY RESULTS INFORMATION:

    Interested investors, the media and others may review this quarterly
earnings release and supplementary financial information at
www.canaccord.com/investor/financialreports.

    CONFERENCE CALL AND WEBCAST PRESENTATION:

    Interested parties can listen to our fiscal first quarter 2008 results
conference call with analysts and institutional investors, live and archived,
via the Internet and a toll free number. The conference call is scheduled for
Thursday, August 2, 2007, at 8:30 a.m. (Pacific Time), 11:30 a.m. (Eastern
Time), and 4:30 p.m. (UK Time). At that time, senior executives will comment
on the results for the first quarter of fiscal 2008 and respond to questions
from analysts and institutional investors.
    The conference call may be accessed live and archived on a listen-only
basis via the Internet at: www.canaccord.com/investor/webcast

    
    Analysts and institutional investors can call in via telephone at:
    -  416-644-3431 (within Toronto)
    -  1-800-595-8550 (toll free outside Toronto)
    -  00-800-0000-2288 (toll free from the United Kingdom)
    

    A replay of the conference call can be accessed after 10:30 a.m. (Pacific
Time), 1:30 p.m. (Eastern Time) and 6:30 p.m. (UK Time) on August 2, 2007,
until 12:00 a.m. (Pacific Time), 3:00 a.m. (Eastern Time) and 8:00 a.m. (UK
Time) on August 9, 2007, at 416-640-1917 or 1-877-289-8525 by entering
passcode 21239449 followed by the number sign.

    ABOUT CANACCORD CAPITAL INC.:

    Through its principal subsidiaries, Canaccord Capital Inc. (TSX & AIM:
CCI) is a leading independent, full service investment dealer in Canada with
capital markets operations in the United Kingdom and the United States of
America. Canaccord is publicly traded on both the Toronto Stock Exchange and
AIM, a market operated by the London Stock Exchange. Canaccord has operations
in two of the principal segments of the securities industry: private client
services and capital markets. Together, these operations offer a wide range of
complementary investment products, brokerage services and investment banking
services to Canaccord's private, institutional and corporate clients.
Canaccord has approximately 1,673 employees worldwide in 30 offices, including
23 Private Client Services offices located across Canada. Canaccord Adams, the
international capital markets division, has operations in Toronto, London,
Boston, Vancouver, New York, Calgary, Montreal, San Francisco, Houston and
Barbados.

    FOR FURTHER INFORMATION, CONTACT:
    North American media:
    Scott Davidson
    Managing Director, Global Head of Marketing & Communications
    Phone: 416-869-3875, email:
    scott_davidson@canaccord.com

    London media:
    Bobby Morse or Ben Willey
    Buchanan Communications (London)
    Phone: +44 (0) 207 466 5000, email:
    bobbym@buchanan.uk.com

    Investor relations inquiries:
    Katherine Young Vice President, Investor Relations
    Phone: 604-643-7013, email:
    katherine_young@canaccord.com

    Nominated Adviser:
    Ben Money-Coutts
    Bridgewell Limited (London)
    Phone: +44 (0) 207 003 3000, email:
    ben.money-coutts@bridgewell.co.uk

    -------------------------------------------------------------------------
    None of the information on Canaccord's Web site at www.canaccord.com
    should be considered incorporated herein by reference.
    -------------------------------------------------------------------------

    Management's Discussion and Analysis

    Fiscal first quarter 2008 for the three months ended June 30, 2007 - this
    document is dated August 1, 2007

    The following discussion of the financial condition and results of
operations for Canaccord Capital Inc. (Canaccord) is provided to enable the
reader to assess material changes in such financial condition and to assess
results for the three-month period ended June 30, 2007, compared to the
corresponding period in the preceding fiscal year. The three-month period
ended June 30, 2007 is also referred to as first quarter 2008, Q1/08 and
fiscal Q1/08 in the following discussion. This discussion should be read in
conjunction with the unaudited interim consolidated financial statements for
the three-month period ended June 30, 2007, beginning on page 21 of this
report; our Annual Information Form dated June 26, 2007; and the 2007 annual
Management's Discussion and Analysis (MD&A) including the audited consolidated
financial statements for the fiscal year ended March 31, 2007, in Canaccord's
Annual Report dated June 26, 2007 (the Annual Report). There has been no
material change to the information contained in the annual MD&A for fiscal
2007 except as disclosed in this MD&A. Canaccord's financial information is
expressed in Canadian dollars unless otherwise specified. The financial
information presented in this document is prepared in accordance with Canadian
generally accepted accounting principles (GAAP) unless specifically specified.
All the financial data below is unaudited except for certain fiscal year data
from our 2007 audited financial statements.

    Caution regarding forward-looking statements

    This document may contain certain forward-looking statements. These
statements relate to future events or future performance and reflect
management's expectations or beliefs regarding future events including
business and economic conditions and Canaccord's growth, results of
operations, performance and business prospects and opportunities. Such
forward-looking statements reflect management's current beliefs and are based
on information currently available to management. In some cases,
forward-looking statements can be identified by terminology such as "may",
"will", "should", "expect", "plan", "anticipate", "believe", "estimate",
"predict", "potential", "continue", "target", "intend" or the negative of
these terms or other comparable terminology. By their very nature,
forward-looking statements involve inherent risks and uncertainties, both
general and specific, and a number of factors could cause actual events or
results to differ materially from the results discussed in the forward-looking
statements. In evaluating these statements, readers should specifically
consider various factors that may cause actual results to differ materially
from any forward-looking statement. These factors include, but are not limited
to, market and general economic conditions, the nature of the financial
services industry and the risks and uncertainties detailed from time to time
in Canaccord's interim and annual consolidated financial statements and its
Annual Report and Annual Information Form filed on www.sedar.com. These
forward-looking statements are made as of the date of this document, and
Canaccord assumes no obligation to update or revise them to reflect new events
or circumstances.

    Non-GAAP measures

    Certain non-GAAP measures are utilized by Canaccord as measures of
financial performance. Non-GAAP measures do not have any standardized meaning
prescribed by GAAP and are therefore unlikely to be comparable to similar
measures presented by other companies.
    Canaccord's capital is represented by common shareholders' equity and,
therefore, management uses return on average common equity (ROE) as a
performance measure.
    Assets under administration (AUA) and assets under management (AUM) are
non-GAAP measures of client assets that are common to the wealth management
aspects of the private client services industry. AUA is the market value of
client assets administered by Canaccord from which Canaccord earns commissions
or fees. This measure includes funds held in client accounts as well as the
aggregate market value of long and short security positions. Canaccord's
method of calculating AUA may differ from the methods used by other companies
and therefore may not be comparable to other companies. Management uses this
measure to assess operational performance of the Private Client Services
business segment. In Q1/08, our AUM definition was reclassified to include all
assets managed on a discretionary basis under our programs generally described
as or known as the Independence Accounts, Separately Managed Accounts, and
Advisor Managed Accounts. AUM including all these programs has been
reclassified commencing in Q1/07 on this basis. Services under these programs
provided include the selection of investments and the provision of investment
advice. AUM are also administered by Canaccord and are included in AUA.

    Overview

    Canaccord's business is cyclical and experiences considerable variations
in revenue and income from quarter to quarter and year to year due to factors
beyond Canaccord's control. Our business is affected by the overall condition
of the North American and European equity markets, including the seasonal
variance in these markets.

    Business environment

    During fiscal Q1/08, the Canadian economy remained strong as rising
commodity prices continue to boost the economy. Economic strength prompted the
Bank of Canada to raise rates in July, similar to other global central banks
around the world, in order to moderate inflationary pressures. In the US, the
major market indices increased, both sequentially and year over year.
    In the UK, the economy remains strong with expected GDP growth rates of
2.9% and 2.7% in calendar 2007 and 2008 respectively, according to the
International Monetary Fund. Due to the continued strength in the economy and
resulting in inflationary pressures, the Bank of England is expected to raise
interest rates in the short term. Both the FTSE and AIM indices increased
during Q1/08 relative to Q4/07 and to Q1/07.

    Market Data

    Year over year trading volumes of shares increased on the TSX,
TSX-Venture, and AIM, while declining on the NASDAQ. Sequentially, trading
volumes were mixed between North America and the UK. Financing values on each
of the TSX, TSX-Venture, AIM and NASDAQ experienced strong growth, both year
over year and sequentially. Although NASDAQ volumes in Q1/07 were down
significantly compared to Q1/08, financing values were up 72.6% during the
same period, which is largely due to three very large transactions in Q1/08.
On the AIM, trading volumes decreased modestly in Q1/08 compared to Q4/07, but
financing were significantly higher since Q4/07 in both new and further
issues. Financing value in Canaccord's focus sectors on the AIM grew as well.
The Mining and Media sectors were particularly strong both year over year and
quarter over quarter.

    
    Trading volume by exchange (billions of shares)
    -------------------------------------------------------------------------
                                                          Increase  Increase
                                                              from      from
                                                  Fiscal    fiscal    fiscal
                    Apr 07    May 07    Jun 07     Q1/08     Q1/07     Q4/07
    -------------------------------------------------------------------------
    TSX                8.0       8.8       8.0      24.8     19.9%      4.4%
    TSX - Venture      5.1       4.5       3.8      13.4     30.8%    (0.3)%
    AIM               11.5      12.5      12.4      36.4      6.1%   (15.9)%
    NASDAQ            19.2      21.6      21.5      60.3   (40.3)%      0.5%
    -------------------------------------------------------------------------
    Source: TSX Statistics, LSE AIM Statistics, Thomson One


    Total financing value by exchange
    -------------------------------------------------------------------------
                                                          Increase  Increase
                                                         (decrease)(decrease)
                                                              from      from
                                                  Fiscal    fiscal    fiscal
                    Apr 07    May 07    Jun 07     Q1/08     Q1/07     Q4/07
    -------------------------------------------------------------------------
    TSX and TSX
     Venture
     (C$ billions)     6.8       5.4       5.8      18.1     29.5%     13.1%
    AIM ((pnds stlg)
     billions)         1.9       2.0       3.1       7.0     31.2%    147.5%
    NASDAQ
     (US$ billions)    7.7       5.6       5.0      18.3     72.6%     41.5%
    -------------------------------------------------------------------------
    Source: TSX Statistics, LSE AIM Statistics, Equidesk


    Financing value for relevant AIM industry sectors
    -------------------------------------------------------------------------
    ((pnds stlg)                                          Increase  Increase
     millions,                                           (decrease)(decrease)
     except for                                               from      from
     percentage                                   Fiscal    fiscal    fiscal
     amounts)       Apr 07    May 07    Jun 07     Q1/08     Q1/07     Q4/07
    -------------------------------------------------------------------------
    Oil and gas      161.7      86.3     127.5     375.5   (47.9)%    112.7%
    Mining           137.4     267.0     487.5     892.0     51.0%    263.5%
    Biotech           30.0      11.5      25.8      67.3   (31.4)%   (34.2)%
    Media            585.2      24.4      71.9     681.5    201.4%    568.9%
    Technology       112.0     108.7      74.6     295.4     30.6%    319.2%
                  -----------------------------------------------------------
    Total          1,026.2     497.9     787.4   2,311.6     24.2%    231.9%
    -------------------------------------------------------------------------
    


    About Canaccord's operations

    Canaccord Capital Inc.'s operations are divided into two business
segments: Canaccord Adams (our capital markets operations) and Private Client
Services.
    Revenue from Canaccord Adams (our capital markets segment) is generated
from commissions and fees earned in connection with investment banking
transactions and institutional sales and trading activity, as well as trading
gains and losses from Canaccord's principal and international trading
operations.
    Revenue from Private Client Services is generated through traditional
commission-based brokerage services; the sale of fee-based products and
services; client-related interest; and fees and commissions earned by
Investment Advisors in respect of investment banking and venture capital
transactions by private clients.
    Canaccord's administrative segment, described as Corporate and Other,
includes correspondent brokerage services, bank and other interest, and
foreign exchange revenue and expenses not specifically allocable to either the
Private Client Services or Canaccord Adams divisions. Also included in this
segment are Canaccord's operations and support services, which are responsible
for front and back office information technology systems, compliance and risk
management, operations, finance, and all administrative functions.

    
    Conslidated operating results

    First quarter and fiscal 2008 summary data(1)
    -------------------------------------------------------------------------
                                                                      Year-
                                             Three months ended    over-year
    (C$ thousands, except per share,               June 30          increase
     employee and % amounts)                  2007         2006    (decrease)
    -------------------------------------------------------------------------
    Canaccord Capital Inc.
      Revenue
        Commission                         $85,775      $78,054         9.9%
        Investment banking                 128,625      102,840        25.1%
        Principal trading                    6,813        7,784      (12.5)%
        Interest                            16,310       13,638        19.6%
        Other                                8,347        3,811       119.0%
    -------------------------------------------------------------------------
    Total revenue                         $245,870     $206,127        19.3%
      Expenses
        Incentive compensation            $121,406     $104,955        15.7%
        Salaries and benefits               14,269       12,493        14.2%
        Other overhead expenses(2)          51,545       49,504         4.1%
    -------------------------------------------------------------------------
    Total expenses                        $187,220     $166,952        12.1%
    Income before income taxes              58,650       39,175        49.7%
    Net income                              39,029       25,942        50.4%
    Earnings per share (EPS) - diluted        0.80         0.54        48.1%
    Return on average common equity (ROE)    41.2%        34.7%      6.5 p.p
    Book value per share - period end         7.96         6.49        22.7%
    Number of employees                      1,673        1,534         9.1%
    -------------------------------------------------------------------------
    (1)   Data is considered to be GAAP except for ROE, book value per share
          and number of employees
    (2)   Consists of trading costs, premises and equipment, communication
          and technology, interest, general and administrative, amortization
          and development costs.
    p.p.: percentage points


    Geographic distribution of revenue for the first quarter of fiscal
    2008(1)
    -------------------------------------------------------------------------
                                                                      Year-
                                             Three months ended    over-year
                                                   June 30          increase
    (C$ thousands, except % amounts)          2007         2006    (decrease)
    -------------------------------------------------------------------------
    Canada                                $162,093     $133,250        21.6%
    UK                                      47,501       48,892       (2.9)%
    US                                      26,422       23,985        10.2%
    Other Foreign Location                   9,854            -          n.m
    -------------------------------------------------------------------------
    (1)   For a business description of Canaccord's geographic distribution
          please refer to the "About Canaccord's Operations" section on
          page 8.
    n.m.: not meaningful
    

    Three-month summary

    On a consolidated basis, revenue is generated through five activities:
commissions and fees associated with agency trading and private client wealth
management activity, investment banking, principal trading, interest and
other. Revenue for the three months ended June 30, 2007, was a record
$245.9 million, up 19.3% or $39.7 million compared to the same period a year
ago.
    For the first quarter of fiscal 2008, revenue generated from commissions
was up $7.7 million to $85.8 million compared to the same period a year ago
and is largely due to strong market activity.
    Investment banking revenue was $128.6 million, up $25.8 million, or
25.1%, primarily due to increased activity from Canadian equity markets and
from higher merger and acquisition fees. Revenue derived from principal
trading was $6.8 million, down $1.0 million, or 12.5%. Interest revenue was
$16.3 million, up $2.7 million, or 19.6%, mainly due to interest earned on
higher cash balances.
    First quarter revenue in Canada was $162.1 million, up 21.6% or
$28.8 million from the same period a year ago. Our operations in Canada
benefited from greater activity in the Canadian equity markets, largely due to
the continued global demand for commodities and related equities.
    Revenue in the UK was $47.5 million, down 2.9% or $1.4 million from the
same period a year ago. Revenue from Other Foreign Location was $9.9 million.
    Revenue in the US was $26.4 million, up $2.4 million or 10.2%, from
Q1/07.

    
    -------------------------------------------------------------------------
    Expenses as a percentage of revenue      Three months ended       Year-
                                                   June 30         over-year
    in percentage points                      2007         2006    (decrease)
    -------------------------------------------------------------------------
      Incentive compensation                 49.4%        50.9%    (1.5) p.p
      Salaries and benefits                   5.8%         6.1%    (0.3) p.p
      Other overhead expenses(1)             20.9%        24.0%    (3.1) p.p
                                         ------------------------------------
    Total                                    76.1%        81.0%    (4.9) p.p
    -------------------------------------------------------------------------
    (1)    Consists of trading costs, premises and equipment, communication
           and technology, interest, general and administrative, amortization
           and development costs.
     p.p.: percentage points


    Expenses for the three months ended June 30, 2007, were $187.2 million, up
12.1% or $20.3 million from a year ago. The overall increase in expenses is
largely due to the parallel growth in incentive compensation relative to
higher revenue.
    Incentive compensation expense was $121.4 million for the quarter, up
15.7% or $16.5 million, due to the increase in incentive-based revenue.
Consolidated incentive compensation as a percentage of total revenue was
49.4%, down 1.5 percentage points. This is largely due to the implementation
of the long term incentive plan (LTIP). Compensation expense includes a 3%
National Health Insurance (NHI) tax applicable for UK-based employees.
    Salaries and benefits expense was $14.3 million, up 14.2% in the first
quarter of fiscal 2008 from the same period a year ago.
    The total compensation (incentive compensation plus salaries) payout as a
percentage of consolidated revenue for Q1/08 was 55.2%, down from 57.0% in
Q1/07.

    -------------------------------------------------------------------------
    Other overhead expenses                                           Year-
                                             Three months ended    over-year
                                                   June 30          increase
    (C$ thousands, except % amounts)          2007         2006    (decrease)
    -------------------------------------------------------------------------
      Trading costs                         $6,958       $8,559      (18.7)%
      Premises and equipment                 5,259        5,937      (11.4)%
      Communication and technology           5,739        5,063        13.4%
      Interest                               6,168        4,982        23.8%
      General and administrative            18,271       19,107       (4.4)%
      Amortization                           1,977        1,989       (0.6)%
      Development costs                      7,173        3,867        85.5%
                                         ------------------------------------
                                           $51,545      $49,504         4.1%
    -------------------------------------------------------------------------
    

    Other overhead expenses were up 4.1% or $2.0 million to $51.5 million for
the first quarter of fiscal 2008 from the same period a year ago. Contributing
to the overall increase in overhead expenses were development costs, which
grew by 85.5% or $3.3 million, and communications and technology costs up
$0.7 million. These increases are largely related to Canaccord's growth across
all geographies. Additionally, interest expense was up 23.8% or $1.2 million
compared to Q1/07 due to higher interest rates, larger cash balances in client
accounts and subordinated debt entered into on March 30, 2007. Offsetting the
increase in overhead expenses were lower trading costs, down 18.7% or
$1.6 million.
    General and administrative expense was down 4.4% or $0.8 million. The
decrease in general and administrative expense for Q1/08 was largely due to a
decrease in reserve expenses, down 78.1% or $1.2 million, and client expenses,
which were down 87.4% or $1.3 million. General and administrative expense was
offset by an increase in promotion and travel expense of 17.1% or $1.1 million
which is largely due to an increase in business travel as a result of our
geographically diverse business.
    Development costs for Q1/08 were $7.2 million, up 85.5% or $3.3 million
from the previous year, and include hiring incentives and systems development
costs. Hiring incentives are one of our tools to recruit new Investment
Advisors (IAs) and capital markets professionals, and include retention costs
related to the acquisition of Adams Harkness Financial Group, Inc. Systems
development costs are expenditures that we have made related to enhancing our
information technology platform. Hiring incentives were $5.5 million, up
104.3% or $2.8 million because of the recruitment of professionals for both
Private Client Services and Canaccord Adams. Overall systems development costs
for Q1/08 were $1.7 million, up 42.0% or $0.5 million, due to enhancements to
our technological platform associated with our growth.
    Net income for Q1/08 was $39.0 million, up 50.4% or $13.1 million from
the same period a year ago. Diluted EPS was $0.80, up $0.26 or 48.1%. ROE for
Q1/08 was 41.2% compared to an ROE of 34.7% a year ago. The increase in EPS is
largely due to growth in net income, and the investments made in our US and UK
operations. Book value per common share for Q1/08 was up 22.7% to $7.96.
    Income taxes were $19.6 million for the quarter, reflecting an effective
tax rate of 33.5%, down from 33.8% a year ago.

    
    Results of operations

    Canaccord Adams
    -------------------------------------------------------------------------
                                             Three months ended       Year-
    (C$ thousands, except                          June 30         over-year
     employees and % amounts)                 2007         2006     increase
    -------------------------------------------------------------------------
    Canaccord Adams
      Revenue                             $155,023     $125,106        23.9%
      Expenses
        Incentive compensation             $76,203      $65,948        15.6%
        Salaries and benefits                4,019        3,188        26.1%
        Other overhead expenses             26,127       22,386        16.7%
                                         ------------------------------------
      Total expenses                       106,349       91,522        16.2%
      Income before income taxes(1)         48,674       33,584        44.9%
      Number of employees                      550          481        14.3%
    -------------------------------------------------------------------------
    (1) Income before income taxes excludes allocated overhead expenses that
        are included in Corporate and Other segment expenses
    

    Revenue from Canaccord Adams (our capital markets segment) is generated
from commissions and fees earned in connection with investment banking
transactions and institutional sales and trading activity, as well as trading
gains and losses from Canaccord's principal and international trading
operations.

    Three months ended June 30, 2007, compared with three months ended
    June 30, 2006

    Revenue for Canaccord Adams in Q1/08 was $155.0 million, up 23.9% or
$29.9 million from the same quarter a year ago, due to continued growth in
market share as well as relatively strong capital markets in all geographies.

    Revenue from Canadian operations

    Canaccord Adams in Canada generated fiscal first quarter revenue of
$72.4 million that was derived from four divisions: Capital Markets,
$62.5 million, up 46.3% or $19.8 million; International Trading, $6.0 million,
down 18.9% or $1.4 million; Registered Traders, $1.7 million, up 6.5% or
$0.1 million; and Fixed Income, $2.1 million, up 16.0% or $0.3 million. The
growth in this geographic sector is largely due to our growing market share as
well as continued high global demand for commodities and for Canadian equities
relative to Q1/07. Canadian revenue for Canaccord Adams of $72.4 million
represents 46.7% of Canaccord Adams' total revenue.

    Revenue from UK operations

    Operations related to Canaccord Adams Limited in the UK include
institutional sales and trading, investment banking, and research. Revenue in
this business was $47.5 million, down 2.8% or $1.4 million from the same
period a year ago due to slower market activity compared to the same period a
year ago. UK revenue of $47.5 million represents 30.6% of Canaccord Adams'
total revenue.

    Revenue from US operations

    The US operations reflect the US capital markets activities of Canaccord
Adams Inc. First quarter 2008 revenue for Canaccord Adams in the US was
$25.3 million, representing 16.3% of Canaccord Adams' total revenue.

    Revenue from Other Foreign Location

    Revenue attributable to Other Foreign Location was derived in large part
from investment banking activity. Revenue in Q1/08 was $9.9 million,
representing 6.4% of Canaccord Adams' total revenue. Revenue realized from
these operations in the comparative period was not material.

    Expenses

    Expenses for Q1/08 were $106.3 million, up 16.2% or $14.8 million. The
largest increases in non-compensation expenses were in development costs, up
233.5% or $3.0 million, and general and administrative expense, up 19.3% or
$1.7 million. Within general and administrative expense, promotion and travel
was up 29.7% or $1.3 million; and professional fees up 52.5% or $0.6 million.
    The increase in incentive compensation for the quarter of 15.6%, or
$10.3 million, is largely attributable to the higher revenue during the
quarter. Salary and benefits expense for the quarter was up by $0.8 million,
up 26.1% from a year ago, largely due to an increase of 69 net new Canaccord
Adams employees across all geographies compared to last year. The total
compensation expense payout as a percentage of revenue for the quarter was
51.7%, down 3.6 percentage points from 55.3% for the same period a year ago.
    Income before income taxes and corporate overhead allocations for the
quarter was $48.7 million, up $15.1 million or 44.9%, from the same quarter a
year ago.

    
    Private Client Services
    -------------------------------------------------------------------------
    (C$ thousands, except assets
     under administration and assets                                  Year-
     under management, which are in          Three months ended    over-year
     C$ millions; employees; Investment            June 30          increase
     Advisors and % amounts)                  2007         2006    (decrease)
    -------------------------------------------------------------------------
    Revenue                                $76,083      $72,286         5.3%
    Expenses
      Incentive compensation               $37,680      $33,368        12.9%
      Salaries and benefits                  4,049        3,430        18.0%
      Other overhead expenses               15,419       18,419      (16.3)%
                                         ------------------------------------
    Total expenses                         $57,148      $55,217         3.5%
    Income before income taxes(1)           18,935       17,069        10.9%
    Assets under management (AUM)              815          712        14.5%
    Assets under administration (AUA)       15,701       13,942        12.6%
    Number of Investment Advisors (IAs)        440          430         2.3%
    Number of employees                        757          710         6.6%
    -------------------------------------------------------------------------
    (1) Income before income taxes excludes allocated overhead expenses that
        are included in Corporate and Other segment expenses
    

    Revenue from Private Client Services is generated through traditional
commission-based brokerage services; the sale of fee-based products and
services; client-related interest; and fees and commissions earned by
Investment Advisors in respect of investment banking and venture capital
transactions by private clients.

    Three months ended June 30, 2007, compared with three months ended
    June 30, 2006

    Revenue from Private Client Services was $76.1 million, up $3.8 million
or 5.3% mainly due to favourable market conditions in North America. AUA grew
by 12.6% or $1.8 billion to $15.7 billion compared to Q1/07. AUM grew by 14.5%
year over year, and has been restated back to Q1/07 for comparative purposes.
There were 440 IAs at the end of the first quarter of fiscal 2008, up from 430
a year ago. Despite an extremely competitive recruiting environment, we
successfully recruited net 10 IAs. Fee-related revenue as a percentage of
total Private Client Services' revenue was up 2.5 percentage points to 22.5%
from the same period last year.
    Expenses for Q1/08 were $57.1 million, up 3.5% or $1.9 million. For the
quarter, the largest increase in expenses were incentive compensation
expenses, up 12.9% or $4.3 million, and interest expense, up 19.2% or
$0.8 million due to higher interest rates and larger client cash balances in
our Private Client Services business this year versus last year. General and
administrative expense was down 51.1% or $3.1 million, related to provisions
made in Q1/07.
    Income before income taxes and corporate allocations for the quarter was
$18.9 million, up 10.9% from the same period a year ago.

    
    Corporate and Other
    -------------------------------------------------------------------------
                                                                      Year-
                                             Three months ended    over-year
    (C$ thousands, except                          June 30          increase
     employees and % amounts)                 2007         2006    (decrease)
    -------------------------------------------------------------------------
    Revenue                                $14,764       $8,735        69.0%
    Expenses
      Incentive compensation                $7,523       $5,639        33.4%
      Salaries and benefits                  6,201        5,875         5.5%
      Other overhead expenses                9,999        8,699        14.9%
                                         ------------------------------------
    Total expenses                         $23,723      $20,213        17.4%
    (Loss) before income taxes              (8,959)     (11,478)     (21.9)%
    Number of employees                        366          343         6.7%
    -------------------------------------------------------------------------
    

    Canaccord's administrative segment, described as Corporate and Other,
includes correspondent brokerage services, bank and other interest, and
foreign exchange revenue and expenses not specifically allocable to either the
Private Client Services or Canaccord Adams divisions. Also included in this
segment are Canaccord's operations and support services, which are responsible
for front and back office information technology systems, compliance and risk
management, operations, finance, and all administrative functions.

    Three months ended June 30, 2007, compared with three months ended
    June 30, 2006

    Revenue for the three months ended June 30, 2007, was $14.8 million, up
69.0% or $6.0 million from the same quarter a year ago, and is due to
increased business activity.
    Expenses for Q1/08 were $23.7 million, up 17.4% or $3.5 million. The
largest increases in expenses were recorded in incentive compensation, up
33.4% or $1.9 million; and general and administrative expense, up 13.0% or
$0.6 million.
    Loss before income taxes was $9.0 million in the first quarter of fiscal
2008, representing a 21.9% or $2.5 million improvement from the same quarter a
year ago.

    Financial condition

    Below are specific changes in selected balance sheet items.

    Cash and cash equivalents

    Cash and cash equivalents were $329.6 million on June 30, 2007, compared
to $506.6 million on March 31, 2007. During the first quarter of fiscal 2008,
operating activities used cash in the amount of $144.6 million, due to net
changes in non-cash working capital items.

    Accounts receivable

    Client security purchases are entered into on either a cash or a margin
basis. When securities are purchased on margin, Canaccord extends a loan to
the client, using securities purchased and/or securities in the client's
account as collateral. Client accounts receivable were $718.8 million on
June 30, 2007, compared to $694.1 million on March 31, 2007. These receivables
vary significantly on a day-to-day basis, as they are based on trading
volumes. On June 30, 2007, total accounts receivable were $2.1 billion
compared with $1.7 billion on March 31, 2007, mainly due to increases in
brokers', dealers' and clients' accounts at fiscal quarter end.

    Call loans

    Loan facilities utilized by Canaccord may vary significantly on a
day-to-day basis and depend on securities trading activity. On June 30, 2007,
the amount borrowed pursuant to call loan facilities was $2.3 million compared
with nil on March 31, 2007.

    Off-balance sheet arrangements

    At June 30, 2007, Canaccord has credit facilities with Canadian, American
and United Kingdom banks in an aggregate amount of $514.0 million. These
credit facilities, consisting of call loans, letters of credit and daylight
overdraft facilities are collateralized by either unpaid securities and/or
securities owned by the Company. Canaccord Capital Corporation has provided a
bank letter of credit in the amount of $1.3 million as a guarantee for lease
obligations of Canaccord Adams Limited. Canaccord Adams Inc. has also entered
into irrevocable standby letters of credit from a financial institution
totalling $2.4 million (US$2.3 million) as rent guarantees for its leased
premises in Boston, New York and San Francisco. As of June 30, 2007, there
were nil outstanding balances under these standby letters of credit.

    Liquidity and capital resources

    Canaccord has a capital structure comprised of share capital, retained
earnings and accumulated other comprehensive income. On June 30, 2007, cash
and cash equivalents net of call loans were $327.3 million, down
$179.3 million from $506.6 million as of March 31, 2007. During the quarter
ended June 30, 2007, financing activities used cash in the amount of
$18.2 million, which was primarily due to the purchase of common shares
related to Canaccord's long term incentive plan (LTIP) of $8.5 million, and
dividend payments of $4.8 million. Investing activities used cash in the
amount of $9.2 million for the purchase of equipment and leasehold
improvements of $4.2 million and from the acquisition of an investment of
$5.0 million. Operating activities used cash in the amount of $144.6 million,
which was due to net increases in non-cash working capital items, net income
and items not affecting cash. In total, there was a reduction in net cash of
$49.1 million compared to the same period a year ago. This decrease is largely
attributed to cash used in operating activities during the first quarter of
fiscal 2008.
    Canaccord's business requires capital for operating and regulatory
purposes. The current assets reflected on Canaccord's balance sheet are highly
liquid. The majority of the positions held as securities owned are readily
marketable and all are recorded at their market value. The market value of
these securities fluctuates daily as factors such as changes in market
conditions, economic conditions and investor outlook affect market prices.
Client receivables are secured by readily marketable securities and are
reviewed daily for impairment in value and collectibility. Receivables and
payables from brokers and dealers represent the following: current open
transactions that generally settle within the normal three-day settlement
cycle; collateralized securities borrowed and/or loaned in transactions that
can be closed within a few days on demand; and balances on behalf of
introducing brokers representing net balances in connection with their client
accounts.
    The addition of subordinated debt at the end of fiscal year 2007 provides
additional regulatory capital to support business activities across our global
platform. Subordinated debt supports regulatory capital in our operating
subsidiaries. Therefore, this addition of leverage to our balance sheet
supports our ongoing growth initiatives.

    
    Outstanding share data
    -------------------------------------------------------------------------
                                            Outstanding shares as of June 30

    -------------------------------------------------------------------------
                                                            2007        2006
    -------------------------------------------------------------------------
    Issued shares excluding unvested shares(1)        45,183,714  45,857,761
    Issued shares outstanding(2)                      47,864,234  47,827,350
    Issued shares outstanding - diluted(3)            48,872,327  47,950,568
    Average shares outstanding - basic                45,170,532  45,906,368
    Average shares outstanding - diluted              48,859,145  47,998,175
    -------------------------------------------------------------------------
    (1) Excludes 2,279,281 unvested shares that are outstanding relating to
        share purchase loans for recruitment and retention programs and
        401,239 unvested shares purchased by employee benefit trust for the
        LTIP
    (2) Includes 2,279,281 unvested shares that are outstanding relating to
        share purchase loans for recruitment and retention programs and
        401,239 unvested shares purchased by employee benefit trust for the
        LTIP
    (3) Includes 1,008,093 of share issuance commitments
    

    At June 30, 2007, Canaccord had 47,864,234 common shares issued and
outstanding, up 36,884 common shares from June 30, 2006, due to the net effect
of shares issued in connection with stock compensation plans and shares
cancelled.
    On December 22, 2006, Canaccord renewed its Normal Course Issuer Bid
(NCIB) for one year commencing on December 29, 2006, and ending on
December 28, 2007. The NCIB allows for purchases of up to 5% of Canaccord's
issued and outstanding shares at the time of the renewal. At December 29,
2006, there were 2,391,880 common shares available for purchase under the
NCIB. Canaccord has agreed with the relevant regulators to update its
shareholders at a minimum rate of every two weeks if purchases are made, and
will update shareholders immediately if more than 1% of its outstanding shares
are purchased in one day. From time to time, Canaccord may purchase its common
shares for the purpose of resale or cancellation. There were no share
transactions under the NCIB between March 31, 2007 and June 30, 2007. However,
the employee benefit trust has purchased 401,239 shares for the LTIP, which
reduces the number of shares allowable under NCIB going forward.
    On January 3, 2006, Canaccord completed the acquisition of Adams Harkness
Financial Group, Inc., which was a privately held Boston, Massachusetts-based
institutional investment bank. The consideration consisted of US$8 million in
cash and the issuance of 1,342,696 common shares from treasury valued at
US$12 million. On closing, these shares were delivered into escrow, subject to
annual releases of one-third per year, beginning on June 30, 2006, and ending
on June 30, 2008.
    In connection with the acquisition of Adams Harkness Financial Group,
Inc., a retention plan was established, which provides for the issuance of up
to 1,118,952 common shares after a three-year vesting period. The total number
of shares to be vested is also based on revenue earned by Canaccord Adams Inc.
subsequent to the date of acquisition. The aggregate number of common shares
that will vest and will therefore be issued at the end of the vesting period
will be the number, which is equal to the revenue earned by Canaccord Adams
Inc. during the vesting period divided by US$250.0 million multiplied by the
number of common shares subject to the retention plan (892,354 common shares
as of June 30, 2007). As such revenue levels are achieved during the vesting
period, the associated proportion of the retention payment will be recorded as
a development cost, and the applicable number of retention shares will be
included in weighted average diluted common shares outstanding.

    International Financial Centre

    Canaccord is a member of the International Financial Centre Vancouver and
International Financial Centre Montreal, which provide certain tax and
financial benefits pursuant to the International Financial Business (Tax
Refund) Act of British Columbia and the Act Respecting International Financial
Centres of Quebec. Accordingly, Canaccord's overall income tax rate is less
than the rate that would otherwise be applicable.

    Foreign exchange

    Canaccord manages its foreign exchange risk by periodically hedging
pending settlements in foreign currencies. Realized and unrealized gains and
losses related to these transactions are recognized in income during the year.
On June 30, 2007, forward contracts outstanding to sell US dollars had a
notional amount of US$37.3 million, up from $8.5 million from a year ago.
Forward contracts outstanding to buy US dollars had a notional amount of
US$32.0 million, up from US$14.5 million compared to a year ago. The fair
value of these contracts was nominal. Some of Canaccord's operations in
London, England are conducted in UK pounds sterling; however, any foreign
exchange risk in respect of these transactions is generally limited, as
pending settlements on both sides of the transaction are typically in UK
pounds sterling.

    Critical accounting estimates

    The following is a summary of Canaccord's critical accounting estimates.
Canaccord's accounting policies are in accordance with Canadian GAAP and are
described in Note 1 to the audited consolidated financial statements for the
year ended March 31, 2007. The accounting policies described below require
estimates and assumptions that affect the amounts of assets, liabilities,
revenues and expenses recorded in the financial statements. Because of their
nature, estimates require judgment based on available information. Actual
results or amounts could differ from estimates, and the difference could have
a material impact on the financial statements.

    Revenue recognition and valuation of securities

    Securities held, including share purchase warrants and options, are
recorded at market value and, accordingly, the unaudited interim consolidated
financial statements reflect unrealized gains and losses associated with such
securities. In the case of publicly traded securities, market value is
determined on the basis of market prices from independent sources, such as
listed exchange prices or dealer price quotations. Adjustments to market
prices are made for liquidity, relative to the size of the position, holding
periods and other resale restrictions, if applicable. Investments in illiquid
or non-publicly traded securities are measured at cost. There is inherent
uncertainty and imprecision in estimating the factors that can affect value
and in estimating values generally. The extent to which valuation estimates
differ from actual results will affect the amount of revenue or loss recorded
for a particular security position in any given period. With Canaccord's
security holdings consisting primarily of publicly traded securities, our
procedures for obtaining market prices from independent sources, the
validation of estimates through actual settlement of transactions, and the
consistent application of our approach from period to period, we believe that
the estimates of market value recorded are reasonable.

    Provisions

    Canaccord records provisions related to pending or outstanding legal
matters and doubtful accounts associated with client receivables, loans,
advances and other receivables. Provisions in connection with legal matters
are determined on the basis of management's judgment in consultation with
legal counsel, considering such factors as the amount of the claim, the
possibility of wrongdoing by an employee of Canaccord, and precedents. Client
receivables are generally collateralized by securities and, therefore, any
impairment is generally measured after considering the market value of the
collateral.
    Provisions in connection with other doubtful accounts are generally based
on management's assessment of the likelihood of collection and the recoverable
amount. Provisions are also recorded utilizing discount factors in connection
with syndicate participation.

    Tax

    Accruals for income tax liabilities require management to make estimates
and judgments with respect to the ultimate outcome of tax filings and
assessments. Actual results could vary from these estimates. Canaccord
operates within different tax jurisdictions and is subject to their individual
assessments. Tax filings can involve complex issues, which may require an
extended period of time to resolve in the event of a dispute or re-assessment
by tax authorities. Canaccord believes that adequate provisions for income
taxes have been made for all years.

    Goodwill and other intangible assets

    As a result of the acquisitions of Adams Harkness Financial Group, Inc.
and Enermarket Solutions Ltd. Canaccord acquired goodwill and other intangible
assets. Goodwill is the cost of the acquired companies in excess of the fair
value of their net assets, including other intangible assets, at the
acquisition date. The identification and valuation of other intangible assets
required management to use estimates and make assumptions. Goodwill is
assessed for impairment at least annually, or whenever a potential impairment
may arise as a result of an event or change in circumstances, to ensure that
the fair value of the reporting unit to which goodwill has been allocated is
greater than or at least equal to its carrying value. Fair value will be
determined using valuation models that take into account such factors as
projected earnings, earnings multiples, discount rates, other available
external information and market comparables. The determination of fair value
requires management to apply judgment in selecting the valuation models and
assumptions and estimates to be used in such models and value determinations.
These judgments affect the determination of fair value and any resulting
impairment charges. Other intangible assets are amortized over their estimated
useful lives and tested for impairment periodically or whenever a potential
impairment may arise as a result of an event or change in circumstances.
Management must exercise judgment and make use of estimates and assumptions in
determining the estimated useful lives of other intangible assets and in
periodic determinations of value.

    Retention plans

    Stock-based compensation

    In connection with the acquisition of Enermarket Solutions Ltd.,
Canaccord agreed to issue common shares to key employees of Enermarket and its
senior management over two years. Similarly, in connection with the
acquisition of Adams Harkness Financial Group, Inc., Canaccord agreed to issue
common shares to certain key employees of Adams Harkness upon the expiry of a
three-year vesting period, with the numbers of common shares to be adjusted in
the event that certain revenue targets are not achieved.

    Long term incentive plan

    The long term incentive plan (LTIP) is a new plan implemented in the
first quarter of fiscal 2008 pending shareholders' approval in August 2007.
Under the LTIP, eligible participants are awarded restricted share units which
vest over three years.

    Related party transactions

    Security trades executed for employees, officers and directors of
Canaccord are transacted in accordance with terms and conditions applicable to
all clients. Commission income on such transactions in the aggregate is not
material in relation to the overall operations of Canaccord.

    Changes in accounting policies

    On April 1, 2007, the Company adopted the provisions of CICA Handbook
Section 3855 "Financial Instruments - Recognition and Measurement", CICA
Handbook Section 3865 "Hedges" and CICA Handbook Section 1530 "Comprehensive
Income".

    Financial Instruments - Recognition and Measurement

    This standard prescribes the recognition and measurement of financial
instruments. Section 3855 requires all financial assets and liabilities
(including derivatives) be measured at fair value on initial recognition
except for certain related party transactions. Measurement in subsequent
periods depends on the classification of the instruments. All financial
instruments must be classified as one of the following categories: held for
trading, held to maturity, loans and receivables and available for sale
assets.
    The financial assets categorized as held for trading are measured at fair
value with unrealized gains and losses recognized in net income. Section 3855
permits an entity to designate any financial instruments as held for trading
on initial recognition or adoption of this standard, even if that instrument
would not otherwise meet the definition of held for trading as specified in
Section 3855. The Company's financial instruments classified as held for
trading include commercial paper and bankers' acceptances, marketable
securities owned and sold short, forward contracts, and broker warrants. The
Company has historically measured these instruments at fair value and any
unrealized gains and losses have been included in income. The Company's
accounting treatment of these instruments remains unchanged as a result of
adoption of the new accounting standards.
    Available for sale financial assets are measured at fair value with
unrealized gains and losses recognized in other comprehensive income. The
Company's investment has been classified as available for sale. The investment
has been carried at cost as there is no available quoted market price in an
active market.
    The financial assets classified as loans and receivables and held to
maturity are measured at amortized cost. There is no change in accounting
treatment for these financial instruments as a result of adoption of Section
3855.

    Hedges

    This standard sets out the criteria of when hedge accounting is applied
and how it is applied. It provides the option of designating qualifying
transactions as hedges for accounting purposes. The qualifying hedging
relationships include fair value hedges, cash flow hedges, and hedges of
foreign currency exposures of net investments in self-sustaining foreign
operations. The changes in the fair value of the hedging derivatives will be
recognized in net earnings or other comprehensive income depending on the
nature of the hedging relationships. Any gains and losses resulting from any
ineffectiveness in hedging relationships are recognized in net income
immediately. The Company does not currently apply hedge accounting and as a
result Section 3865 does not apply to the Company at this time.

    Comprehensive Income

    This section establishes standards for the reporting and disclosure of
other comprehensive income ("OCI") in a new category, Accumulated
Comprehensive Income, which will be added to shareholders' equity on the
consolidated balance sheet. Comprehensive income includes all changes in
equity of the Company during a period except those resulting from investments
by shareholders and distributions to shareholders. The major components
included in Accumulated Comprehensive Income are unrealized gains and losses
on financial assets classified as available for sale, and unrealized foreign
exchange gains and losses arising on translation of the financial statements
of self-sustaining foreign operations.
    As a result of adopting Section 1530, the Company has disclosed the OCI
in a new category, Accumulated Comprehensive Income, which has been added to
shareholders' equity on the consolidated balance sheet. The OCI is comprised
of the cumulative translation adjustment arising on the translation of the
financial statements of self-sustaining foreign operations. The Company has
reclassified $6.3 million of cumulative translation adjustments to the opening
balance of accumulated comprehensive income.

    Controls and procedures

    Disclosure controls and procedures

    Canaccord's Management, including the CEO and the Executive Vice
President & CFO, has designed disclosure controls and procedures to provide
reasonable assurance that all relevant information is identified to the
Disclosure Committee to ensure appropriate and timely decisions are made
regarding public disclosure.

    Changes in internal control over financial reporting

    There were no changes in internal control over financial reporting that
occurred during the quarter ended June 30, 2007 that have materially affected,
or are reasonably likely to materially affect, Canaccord's internal control
over financial reporting.

    Dividend policy

    Although dividends are expected to be declared and paid quarterly, the
Board of Directors, in its sole discretion, will determine the amount and
timing of any dividends. All dividend payments will depend on general business
conditions, Canaccord's financial condition, results of operations and capital
requirements and such other factors as the Board determines to be relevant.

    Dividend declaration

    For the first quarter of fiscal 2008, the Board of Directors approved a
quarterly dividend increase of $0.025, or 25% per share to $0.125 per share.
Dividends are payable on September 10, 2007, to shareholders of record on
August 24, 2007. The common share dividend payment to common shareholders will
total approximately $5.9 million, or about 15.2%, of first quarter net income.
Canaccord intends to pay a $0.125 regular quarterly common share dividend for
each quarter in fiscal 2008.

    Historical quarterly information

    Canaccord's revenue from an underwriting transaction is recorded only
when the transaction has closed. Consequently, the timing of revenue
recognition can materially affect Canaccord's quarterly results. The expense
structure of Canaccord's operations is geared towards providing service and
coverage in the current market environment. If general capital markets
activity were to drop significantly, Canaccord could experience losses.
    The following table provides selected quarterly financial information for
the nine most recently completed financial quarters ended June 30, 2007. This
information is unaudited, but reflects all adjustments of a recurring nature,
which are, in the opinion of management, necessary to present a fair statement
of the results of operations for the periods presented. Quarter-to-quarter
comparisons of financial results are not necessarily meaningful and should not
be relied upon as an indication of future performance.

    
    -------------------------------------------------------------------------
    (C$ thousands, except    Fiscal 2008                Fiscal 2007
     per share amounts)      -----------                -----------
    -------------------------------------------------------------------------
                                      Q1       Q4       Q3       Q2       Q1
    -------------------------------------------------------------------------
    Revenue
      Canaccord Adams            155,023  130,151  101,427   93,033  125,106
      Private Client Services     76,083   75,876   68,831   55,626   72,286
      Corporate and Other         14,764   10,416    8,055    7,372    8,735
    -------------------------------------------------------------------------
    Total revenue                245,870  216,443  178,313  156,031  206,127
    Net income                    39,029   26,016   23,692   17,806   25,942
    EPS - basic                     0.87     0.57     0.51     0.39     0.57
    EPS - diluted                   0.80     0.54     0.49     0.37     0.54
    -------------------------------------------------------------------------

    ----------------------------------------------------------------
    (C$ thousands, except                      Fiscal 2006
     per share amounts)                        -----------
                                      Q4       Q3       Q2      Q1
    ----------------------------------------------------------------
    Revenue
      Canaccord Adams            120,243   98,918   60,048   54,457
      Private Client Services     78,422   54,731   52,411   39,630
      Corporate and Other          8,409    5,021    6,195    4,930
    ----------------------------------------------------------------
    Total revenue                207,074  158,670  118,654   99,017
    Net income                    30,070   24,248   15,754   11,078
    EPS - basic                     0.66     0.55     0.35     0.24
    EPS - diluted                   0.63     0.52     0.34     0.24
    ----------------------------------------------------------------
    

    Risks

    The securities industry and Canaccord's activities are by their very
nature subject to a number of inherent risks. Economic conditions, competition
and market factors such as volatility in the Canadian and international
markets, interest rates, commodity prices, market prices, trading volumes and
liquidity will have a significant impact on Canaccord's profitability. An
investment in the common shares of Canaccord involves a number of risks,
including market, liquidity, credit, operational, legal and regulatory risks,
which could be substantial and are inherent in Canaccord's business. Canaccord
is also directly exposed to market price risks, liquidity risk and volatility
risk as a result of its principal trading activities in equity securities and
to specific interest rate risk as a result of its principal trading in fixed
income securities. Private Client Services' revenue is dependent on trading
volumes and, as such, is dependent on the level of market activity and
investor confidence. Canaccord Adams' revenue is dependent on financing
activity by corporate issuers and the willingness of institutional clients to
actively trade and participate in capital markets transactions. There may also
be a lag between market fluctuations and changes in business conditions and
the level of Canaccord's market activity and the impact that these factors
have on Canaccord's operating results and financial position. Furthermore,
Canaccord may not achieve its growth plans associated with the acquisition and
integration of Adams Harkness Financial Group, Inc.

    Additional information

    A comprehensive discussion of our business, strategies, objectives and
risks is available in our Annual Information Form and Management's Discussion
and Analysis, including our audited annual financial statements in Canaccord's
2007 Annual Report, which are available on our Web site at
www.canaccord.com/investor and on SEDAR at www.sedar.com.


    
    Interim Consolidated Financial Statements

    Canaccord Capital Inc.
    Unaudited
    For the three months ended June 30, 2007
    (Expressed in Canadian dollars)


                           Canaccord Capital Inc.

               INTERIM CONSOLIDATED BALANCE SHEETS (Unaudited)


                                               (in thousands of dollars)

    As at                                  June 30,    March 31,   June 30,
                                             2007        2007        2006
                                              $           $           $
    -------------------------------------------------------------------------

    ASSETS
    Current
    Cash and cash equivalents                329,584     506,640     376,986
    Securities owned, at market (note 3)     225,734     348,764     194,061
    Accounts receivable (notes 6 and 11)   2,052,737   1,672,035   1,154,454
    -------------------------------------------------------------------------
    Total current assets                   2,608,055   2,527,439   1,725,501
    -------------------------------------------------------------------------
    Investment (note 5)                        5,000           -           -
    Equipment and leasehold improvements      39,231      37,549      24,449
    Future income taxes                        7,761      11,021      11,872
    Goodwill and other intangible
     assets (note 7)                          33,580      33,933      27,575
    -------------------------------------------------------------------------
                                           2,693,627   2,609,942   1,789,397
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current
    Call loans                                 2,265           -         556
    Securities sold short, at market
     (note 3)                                 85,222      41,176     109,923
    Accounts payable and accrued
     liabilities (notes 6 and 11)          2,189,371   2,156,540   1,359,198
    Income taxes payable                       2,528      15,035       8,522
    Subordinated debt (note 8)                25,000      25,000           -
    -------------------------------------------------------------------------
    Total current liabilities              2,304,386   2,237,751   1,478,199
    -------------------------------------------------------------------------
    Commitments and contingencies (note 13)
    Shareholders' equity
    Share capital (note 9)                   146,068     156,296     158,718
    Retained earnings                        247,903     213,659     158,579
    Accumulated other comprehensive
     income (losses) (note 2)                 (4,730)      2,236      (6,099)
    -------------------------------------------------------------------------
    Total shareholders' equity               389,241     372,191     311,198
    -------------------------------------------------------------------------
                                           2,693,627   2,609,942   1,789,397
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    See accompanying notes



                           Canaccord Capital Inc.

          INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)


                                                    (in thousands of dollars,
                                                    except per share amounts)

                                                   For the three months ended
                                                   --------------------------
                                                       June 30,    June 30,
                                                         2007        2006
                                                          $           $
    -------------------------------------------------------------------------
    REVENUE
    Commission                                            85,775      78,054
    Investment banking                                   128,625     102,840
    Principal trading                                      6,813       7,784
    Interest                                              16,310      13,638
    Other                                                  8,347       3,811
    -------------------------------------------------------------------------
                                                         245,870     206,127
    -------------------------------------------------------------------------

    EXPENSES
    Incentive compensation                               121,406     104,955
    Salaries and benefits                                 14,269      12,493
    Trading costs                                          6,958       8,559
    Premises and equipment                                 5,259       5,937
    Communication and technology                           5,739       5,063
    Interest                                               6,168       4,982
    General and administrative                            18,271      19,107
    Amortization                                           1,977       1,989
    Development costs                                      7,173       3,867
    -------------------------------------------------------------------------
                                                         187,220     166,952
    -------------------------------------------------------------------------
    Income before income taxes                            58,650      39,175
    Income tax expense (recovery)
      Current                                             17,075      14,336
      Future                                               2,546      (1,103)
    -------------------------------------------------------------------------
                                                          19,621      13,233
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Net income for the period                             39,029      25,942
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic earnings per share (note 9(v))                    0.86        0.57
    Diluted earnings per share (note 9 (v))                 0.80        0.54
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    See accompanying notes



                            Canaccord Capital Inc

                INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN
                      SHAREHOLDERS' EQUITY (Unaudited)


                                               (in thousands of dollars)
    As at and for the three
     months ended June 30, 2007            June 30,    March 31,   June 30,
     and 2006 and for the year               2007        2007        2006
     ended March 31, 2007                     $           $           $
    -------------------------------------------------------------------------
    Common shares, opening                   147,900     152,705     152,705
    Shares issued                                426         194           -
    Shares cancelled                               -         (45)          -
    Acquisition of common shares for
     long-term incentive plan (note 10)       (8,544)          -           -
    Unvested share purchase loans             (6,596)     (4,954)        375
    -------------------------------------------------------------------------
    Common shares, closing                   133,186     147,900     153,080
    -------------------------------------------------------------------------

    Contributed surplus, opening               8,396       4,939       4,939
    Excess on redemption of common shares          -         (38)          -
    Excess on distribution of acquired
     common shares (note 9 (iv))                   -       1,623           -
    Stock-based compensation (note 10)         3,139           -           -
    Unvested share purchase loans              1,347       1,872         699
    -------------------------------------------------------------------------
    Contributed surplus, closing              12,882       8,396       5,638
    -------------------------------------------------------------------------
    Share capital                            146,068     156,296     158,718
    -------------------------------------------------------------------------

    Retained earnings, opening               213,659     136,463     136,463
    Net income for the period                 39,029      93,456      25,942
    Cash dividends                            (4,785)    (16,260)     (3,826)
    -------------------------------------------------------------------------
    Retained earnings, closing               247,903     213,659     158,579
    -------------------------------------------------------------------------

    Accumulated other comprehensive
     income (losses), opening                  2,236      (6,277)     (6,277)
    Other comprehensive income (loss)         (6,966)      8,513         178
    -------------------------------------------------------------------------
    Accumulated other comprehensive
     income (losses), closing                 (4,730)      2,236      (6,099)
    -------------------------------------------------------------------------

    Shareholders' equity                     389,241     372,191     311,198
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



           INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                 (Unaudited)


                                                    (in thousands of dollars)
                                                   For the three months ended
                                                       June 30,    June 30,
                                                         2007        2006
                                                          $           $
                                                   --------------------------
    Net income for the period                             39,029      25,942
    Other comprehensive income (loss),
     net of taxes
    Net change in unrealized gains (losses)
     on translation of self-sustaining
     foreign operations                                   (6,966)        178
    -------------------------------------------------------------------------
    Comprehensive income for the period                   32,063      26,120
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    See accompanying notes


                           Canaccord Capital Inc.

          INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)


                                                    (in thousands of dollars)

                                                   For the three months ended
                                                   --------------------------
                                                       June 30,    June 30,
                                                         2007        2006
                                                          $           $
    -------------------------------------------------------------------------

    OPERATING ACTIVITIES
    Net income for the period                             39,029      25,942
    Items not affecting cash
      Amortization                                         1,977       1,377
      Issuance of shares in connection
       with stock compensation plans                          76           -
      Stock option expense                                    41           -
      Future income tax expense (recovery)                 2,546      (1,103)
    Changes in non-cash working capital
      Decrease in securities owned                       122,274       9,035
      (Increase) decrease in accounts receivable        (412,550)    388,138
      Increase in securities sold short                   44,049      72,766
      Increase (decrease) in accounts payable
       and accrued liabilities                            68,569    (474,398)
      Decrease in income taxes payable                   (10,634)     (6,868)
    -------------------------------------------------------------------------
    Cash provided by (used in) operating activities     (144,623)     14,889
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Issuance of shares for cash                              350           -
    Decrease in unvested common share purchase loans      (5,249)      1,074
    Acquisition of common shares for long-term
     incentive plan                                       (8,544)          -
    Dividends paid                                        (4,786)     (3,826)
    -------------------------------------------------------------------------
    Cash used in financing activities                    (18,229)     (2,752)
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Purchase of equipment and leasehold improvements      (4,187)       (446)
    Acquisition of investment                             (5,000)          -
    -------------------------------------------------------------------------
    Cash used in investing activities                     (9,187)       (446)
    -------------------------------------------------------------------------

    Effect of foreign exchange on cash balances           (7,282)     (1,084)
    -------------------------------------------------------------------------

    Increase (decrease) in cash position                (179,321)     10,607
    Cash position, beginning of period                   506,640     365,823
    -------------------------------------------------------------------------
    Cash position, end of period                         327,319     376,430
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cash position is comprised of:
    Cash and cash equivalents                            329,584     376,986
    Call loans                                            (2,265)       (556)
    -------------------------------------------------------------------------
                                                         327,319     376,430
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental cash flow information
    Interest paid                                          6,160       4,939
    Income taxes paid                                     28,814      21,614
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    See accompanying notes



    Canaccord Capital Inc. (the "Company") is an independent full service
    investment dealer. The Company has operations in each of the two
    principal segments of the securities industry: private client services
    and capital markets. Together these operations offer a wide range of
    complementary investment products, brokerage services and investment
    banking services to the Company's retail, institutional and corporate
    clients.

    The Company's business is cyclical and experiences considerable
    variations in revenue from quarter to quarter as a result of the overall
    condition of the North American and European equity markets and the
    seasonal variance in these markets.

    1.  SIGNIFICANT ACCOUNTING POLICIES

    Basis of presentation and principles of consolidation

    These interim unaudited consolidated financial statements have been
    prepared by the Company in accordance with Canadian generally accepted
    accounting principles ("GAAP") with respect to interim financial
    statements, applied on a consistent basis. These interim unaudited
    consolidated financial statements follow the same accounting principles
    and methods of application as those disclosed in Note 1 to the Company's
    audited consolidated financial statements as at and for the year ended
    March 31, 2007 ("Audited Annual Consolidated Financial Statements").
    Accordingly, they do not include all the information and footnotes
    required for compliance with Canadian GAAP for annual financial
    statements. These interim unaudited consolidated financial statements and
    notes thereon should be read in conjunction with the Audited Annual
    Consolidated Financial Statements.

    The preparation of these interim unaudited consolidated financial
    statements and the accompanying notes requires management to make
    estimates and assumptions that affect the amounts reported. In the
    opinion of management, these interim unaudited consolidated financial
    statements reflect all adjustments (which include only normal, recurring
    adjustments) necessary to state fairly the results for the periods
    presented. Actual results could vary from these estimates and the
    operating results for the interim periods presented are not necessarily
    indicative of results that may be expected for the full year.

    Consolidation of variable interest entities

    The Company consolidates variable interest entities ("VIEs") in
    accordance with the guidance provided by CICA Accounting Guideline 15,
    "Consolidation of variable interest entities" (AcG-15). AcG-15 defines a
    VIE as an entity which either does not have sufficient equity at risk to
    finance its activities without additional subordinated financial support
    or where the holders of equity at risk lack the characteristics of a
    controlling financial interest. The enterprise that consolidates a VIE is
    called the primary beneficiary of the VIE. An enterprise should
    consolidate a VIE when that enterprise has a variable interest that will
    absorb a majority of the entity's expected losses, or receive a majority
    of the entity's expected residual returns.

    The Company has established an employee benefit trust (Note 10) to
    fulfill obligations to employees arising from the Company's stock-based
    compensation plan. The employee benefit trust has been consolidated in
    accordance with Accounting Guideline 15 as it meets the definition of a
    VIE and the Company is the primary beneficiary of the employee benefit
    trust.

    2.  CHANGE IN ACCOUNTING POLICIES

    On April 1, 2007, the Company adopted the provisions of CICA Handbook
    Section 3855 "Financial Instruments - Recognition and Measurement", CICA
    Handbook Section 3865 "Hedges" and CICA Handbook Section 1530
    "Comprehensive Income".

    Financial Instruments - Recognition and Measurement

    This standard prescribes the recognition and measurement of financial
    instruments. Section 3855 requires all financial assets and liabilities
    (including derivatives) be measured at fair value on initial recognition
    except for certain related party transactions. Measurement in subsequent
    periods depends on the classification of the instruments. All financial
    instruments must be classified as one of the following categories: held
    for trading, held to maturity, loans and receivables and available for
    sale assets.

    The financial assets categorized as held for trading are measured at fair
    value with unrealized gains and losses recognized in net income. Section
    3855 permits an entity to designate any financial instruments as held for
    trading on initial recognition or adoption of this standard, even if that
    instrument would not otherwise meet the definition of held for trading as
    specified in Section 3855. The Company's financial instruments classified
    as held for trading include commercial paper and bankers' acceptances,
    marketable securities owned and sold short, forward contracts, and broker
    warrants. The Company has historically measured these instruments at fair
    value and any unrealized gains and losses have been included in income.
    The Company's accounting treatment of these instruments remains unchanged
    as a result of adoption of the new accounting standards.

    Available for sale financial assets are measured at fair value with
    unrealized gains and losses recognized in other comprehensive income. The
    Company's investment (note 5) has been classified as available for sale.
    The investment has been carried at cost as there is no available quoted
    market price in an active market.

    The financial assets classified as loans and receivables and held to
    maturity are measured at amortized cost. There is no change in accounting
    treatment for these financial instruments as a result of adoption of
    Section 3855.

    Hedges

    This standard sets out the criteria of when hedge accounting is applied
    and how it is applied. It provides the option of designating qualifying
    transactions as hedges for accounting purposes. The qualifying hedging
    relationships include fair value hedges, cash flow hedges, and hedges of
    foreign currency exposures of net investments in self-sustaining foreign
    operations. The changes in the fair value of the hedging derivatives will
    be recognized in net earnings or other comprehensive income depending on
    the nature of the hedging relationships. Any gains and losses resulting
    from any ineffectiveness in hedging relationships are recognized in net
    income immediately. The Company does not currently apply hedge accounting
    and as a result Section 3865 does not apply to the Company at this time.

    Comprehensive Income

    This section establishes standards for the reporting and disclosure of
    other comprehensive income ("OCI") in a new category, Accumulated
    Comprehensive Income, which will be added to shareholders' equity on the
    consolidated balance sheet. Comprehensive income includes all changes in
    equity of the Company during a period except those resulting from
    investments by shareholders and distributions to shareholders. The major
    components included in Accumulated Comprehensive Income are unrealized
    gains and losses on financial assets classified as available for sale,
    and unrealized foreign exchange gains and losses arising on translation
    of the financial statements of self-sustaining foreign operations.

    As a result of adopting Section 1530, the Company has disclosed the OCI
    in a new category, Accumulated Comprehensive Income, which has been added
    to shareholders' equity on the consolidated balance sheet. The OCI is
    comprised of the cumulative translation adjustment arising on the
    translation of the financial statements of self-sustaining foreign
    operations. The Company has reclassified $6.3 million of cumulative
    translation adjustments to the opening balance of accumulated
    comprehensive income.

    3.  SECURITIES OWNED AND SECURITIES SOLD SHORT

                                   June 30, 2007          March 31, 2007
                              ----------------------  ----------------------
                              Securities  Securities  Securities  Securities
                                 owned    sold short     owned    sold short
                                   $           $           $           $
    -------------------------------------------------------------------------

    Corporate and government
     debt                         49,965      28,287      23,786       5,313
    Equities and convertible
     debentures                  175,769      56,935     324,978      35,863
    -------------------------------------------------------------------------
                                 225,734      85,222     348,764      41,176
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                   June 30, 2006
                              ----------------------
                              Securities  Securities
                                 owned    sold short
                                   $           $
    -------------------------------------------------

    Corporate and government
     debt                        116,317      88,710
    Equities and convertible
     debentures                   77,744      21,213
    -------------------------------------------------
                                 194,061     109,923
    -------------------------------------------------
    -------------------------------------------------

    As at June 30, 2007, corporate and government debt maturities range from
    2007 to 2040 (March 31, 2007 - 2007 to 2054 and June 30, 2006 - 2006 to
    2053) and bear interest ranging from 3.125% to 11.50% (March 31, 2007 -
    2.75% to 11.50% and June 30, 2006 - 2.55% to 14.00%).

    The security positions are classified as held for trading under CICA
    Handbook Section 3855 "Financial Instruments - Recognition and
    Measurement". Unrealized gains and losses are included in net income in
    the period incurred.

    4.  FOREIGN EXCHANGE RISK

    Foreign exchange risk arises from the possibility that changes in the
    price of foreign currencies will result in losses. The Company
    periodically trades certain foreign exchange contracts to manage and
    hedge foreign exchange risk on pending settlements in foreign currencies.
    Realized and unrealized gains and losses related to these contracts are
    recognized in income during the year.

    Forward contracts outstanding at June 30, 2007:

                Notional amounts   Average price               Fair value
                (millions of USD)    (CAD/USD)    Maturity  (millions of USD)
    -------------------------------------------------------------------------
    To sell
     US dollars       $37.25            1.06    July 3, 2007       $0.1
    To buy
     US dollars       $32.00            1.06    July 3, 2007      ($0.1)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Forward contracts outstanding at March 31, 2007:

                Notional amounts   Average price               Fair value
                (millions of USD)    (CAD/USD)    Maturity  (millions of USD)
    -------------------------------------------------------------------------
    To sell
     US dollars       $12.90           $1.16  April 30, 2007       $0.1
    To buy
     US dollars        $2.50           $1.16   April 3, 2007      ($0.1)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Forward contracts outstanding at June 30, 2006:

                Notional amounts   Average price               Fair value
                (millions of USD)    (CAD/USD)    Maturity  (millions of USD)
    -------------------------------------------------------------------------
    To sell
     US dollars        $8.50            $1.11   July 5, 2006       $0.1
    To buy
     US dollars       $14.50            $1.11   July 6, 2006      ($0.1)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    5.  INVESTMENT

                                           June 30,    March 31,   June 30,
                                             2007        2007        2006
                                              $           $           $
    -------------------------------------------------------------------------
    Available for sale                         5,000           -           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The Company has invested $5 million in a limited partnership as part of
    its initiative to develop a new Alternative Trading System. The
    investment is carried at cost as there is no available quoted market
    price in an active market.

    6.  ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

    Accounts receivable

                                           June 30,    March 31,   June 30,
                                             2007        2007        2006
                                              $           $           $
    -------------------------------------------------------------------------
    Brokers and investment dealers           901,200     571,461     368,262
    Clients                                  718,810     694,123     428,005
    RRSP cash balances held in trust         362,067     349,932     306,648
    Other                                     70,660      56,519      51,539
    -------------------------------------------------------------------------
                                           2,052,737   1,672,035   1,154,454
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Accounts payable and accrued liabilities

                                           June 30,    March 31,   June 30,
                                             2007        2007        2006
                                              $           $           $
    -------------------------------------------------------------------------
    Brokers and investment dealers           569,733     442,828     300,774
    Clients                                1,369,152   1,212,464     919,481
    Other                                    250,486     501,248     138,943
    -------------------------------------------------------------------------
                                           2,189,371   2,156,540   1,359,198
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Accounts payable to clients include $362.1 million (March 31, 2007 -
    $349.9 million and June 30, 2006 - $306.6 million) payable to clients for
    RRSP cash balances held in trust.

    Client security purchases are entered into on either a cash or margin
    basis. In the case of a margin account, the Company extends a loan to a
    client for the purchase of securities, using securities purchased and/or
    other securities in the client's account as collateral. Amounts loaned to
    any client are limited by margin regulations of the Investment Dealers
    Association of Canada and other regulatory authorities and are subject to
    the Company's credit review and daily monitoring procedures.

    Amounts due from and to clients are due by the settlement date of the
    trade transaction. Margin loans are due on demand and are collateralized
    by the assets in the client accounts. Interest on margin loans and
    amounts due to clients is based on a floating rate (June 30, 2007 -
    8.00%-10.25% and 2.25%-3.00%; respectively, March 31, 2007 - 8.00%-
    10.25% and 2.27%-3.00%, respectively; and June 30, 2006 - 6.25%-
    10.00% and 2.09%-3.00%, respectively).

    7.  GOODWILL AND OTHER INTANGIBLE ASSETS

                                           June 30,    March 31,   June 30,
                                             2007        2007        2006
                                              $           $           $
    -------------------------------------------------------------------------

    Goodwill                                  30,070      30,070      22,653
    -------------------------------------------------------------------------
    Other intangible assets
      Balance at beginning of period           3,863       5,276       5,276
      Amortization                               353       1,413         354
    -------------------------------------------------------------------------
      Balance at end of period                 3,510       3,863       4,922
    -------------------------------------------------------------------------
                                              33,580      33,933      27,575
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Other intangible assets reflect assigned values related to acquired brand
    names, customer relationships and technology and are amortized on a
    straight-line basis over their estimated useful life of four years.
    Goodwill and other intangible assets relate to the Canaccord Adams
    operating segment.

    In March 2007, the Company completed its assessment of the net assets
    acquired in connection with the purchase price allocation for the
    acquisition of Adams Harkness Financial Group, Inc. ("Adams Harkness") in
    January 2006, and goodwill was increased to $30,070 to reflect
    finalization of the fair value assessment of future income tax benefits.

    8.  SUBORDINATED DEBT

                                           June 30,    March 31,   June 30,
                                             2007        2007        2006
                                              $           $           $
    -------------------------------------------------------------------------
    Loan payable, interest payable
     monthly at prime + 2% per annum,
     due on demand                            25,000      25,000           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The loan payable is subject to a subordination agreement and may only be
    repaid with the prior approval of the Investment Dealers Association of
    Canada.

    9.  SHARE CAPITAL

                                           June 30,    March 31,   June 30,
                                             2007        2007        2006
                                              $           $           $
    -------------------------------------------------------------------------
    Issued and fully paid
    Share capital
      Common shares                          173,857     173,431     173,282
      Unvested share purchase loans          (32,127)    (25,531)    (20,202)
      Acquisition of common shares for
       long-term incentive plan (note 10)     (8,544)          -           -
    Contributed surplus                       12,882       8,396       5,638
    -------------------------------------------------------------------------
                                             146,068     156,296     158,718
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Share capital of Canaccord Capital Inc. is comprised of the following:

    (i) Authorized

    Unlimited common shares without par value
    Unlimited preferred shares without par value

    (ii) Issued and fully paid

    Common shares

                                                       Number of     Amount
                                                         Shares         $
    -------------------------------------------------------------------------
    Balance June 30, 2006                             47,827,350     173,282
    Shares issued in connection with
     stock compensation plans (note 10)                   17,133         194
    Shares cancelled                                     (12,522)        (45)
    -------------------------------------------------------------------------
    Balance, March 31, 2007                           47,831,961     173,431
    -------------------------------------------------------------------------
    Shares issued for cash                                25,000         350
    Shares issued in connection with
     stock compensation plan (note 10)                     7,273          76
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Balance, June 30, 2007                            47,864,234     173,857
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The Company renewed its normal course issuer bid and is currently
    entitled to acquire from December 29, 2006 to December 28, 2007, up to
    2,391,880 of its shares, which represents 5% of its shares outstanding as
    of December 20, 2006. There were no share transactions under the NCIB
    between March 31, 2007 and June 30, 2007. However, the employee benefit
    trust has purchased 401,239 shares for the long-term incentive plan
    (note 10), which reduces the number of shares allowable under NCIB going
    forward.

    (iii) Common share purchase loans

    The Company provides forgivable common share purchase loans to employees
    in order to purchase common shares. The unvested balance of forgivable
    common share purchase loans is presented as a deduction from share
    capital. The forgivable common share purchase loans are amortized over a
    vesting period of three years. Contributed surplus includes the
    amortization of unvested forgivable common share purchase loans.

    (iv) Distribution of acquired common shares

    In December 2006, the Company repurchased 195,968 common shares for
    $1.9 million from departed employees as settlement of the unvested
    portion of forgivable loans. A total of 189,567 common shares were
    subsequently distributed to existing employees at market price of
    $18.20 per share for cash proceeds of $3.5 million. The excess on
    distribution of $1.6 million has been credited to contributed surplus.
    The Company has cancelled the remaining 6,401 common shares.

    (v) Earnings per share

                                                   For the three months ended
                                                   --------------------------
                                                       June 30,    June 30,
                                                         2007        2006
                                                          $           $
    -------------------------------------------------------------------------
    Basic earnings per share
    Net income for the period                             39,029      25,942
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average number of common
     shares (number)                                  45,170,532  45,906,368
    Basic earnings per share                                0.86        0.57
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Diluted earnings per share
    Net income for the period                             39,029      25,942
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average number of common
     shares (number)                                  45,170,532  45,906,368
    Dilutive effect of unvested shares (number)        2,279,281   1,968,589
    Dilutive effect of directors options
     (number) (note 10)                                  125,000           -
    Dilutive effect of share issuance
     commitment in connection with retention
     plan (number) (note 10)                             326,576     123,218
    Dilutive effect of unvested shares purchased
     by employee benefit trust (number) (note 10)        401,239           -
    Dilutive effect of share issuance commitment
     in connection with long-term incentive
     plan (number) (note 10)                             556,517           -
    -------------------------------------------------------------------------
    Adjusted weighted average number of common
     shares (number)                                  48,859,145  47,998,175
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Diluted earnings per share                              0.80        0.54
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    10. STOCK-BASED COMPENSATION PLANS

    Retention Plans

    As described in the Audited Annual Consolidated Financial Statements, the
    Company established two retention plans in connection with the
    acquisitions of Enermarket and Adams Harkness.

    The plan for Enermarket consists of the issuance of up to 25,210 common
    shares of the Company over two years. In December 2006, the Company
    issued 10,254 common shares under this plan (Note 9 (ii)).

    The plan for Adams Harkness provides for the issuance of up to 1,118,952
    common shares of the Company after a three-year vesting period. The total
    number of shares which will vest is also based on revenue earned by
    Canaccord Adams Inc. during the vesting period. The aggregate number of
    common shares which vest will be that number which is equal to the
    revenue earned by Canaccord Adams Inc. during the vesting period divided
    by US$250.0 million multiplied by the number of common shares subject to
    the retention plan (892,354 common shares as of June 30, 2007). As such
    revenue levels are achieved during the vesting period, the associated
    proportion of the retention payment will be recorded as a development
    cost and the applicable number of retention shares will be included in
    diluted common shares outstanding (Note 9 (v)). The Company has expensed
    $1,129 and $736 for the period ended June 30, 2007 and June 30, 2006. The
    Company issued 7,273 common shares in June 2007 and 6,879 common shares
    in February 2007 to employees who have ceased their employment in
    circumstances where the retention plan provides for a partial vesting of
    the shares awarded under the plan (Note 9 (ii)).

    The following table details the activity under the Company's retention
    plans and employee treasury stock purchase plan:

                                                   For the three months ended
                                                   --------------------------
                                                       June 30,    June 30,
                                                         2007        2006
    -------------------------------------------------------------------------
    Number of common shares subject to the
     Enermarket retention plan:
        Beginning of period                               10,254      25,210
        Grants                                                 -           -
    -------------------------------------------------------------------------
        End of period                                     10,254      25,210
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shares vested during the period                            -           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Number of common shares subject to the Adams
    Harkness retention plan:
        Beginning of period                              953,107   1,046,219
        Grants                                                 -      72,733
        Issued                                            (7,273)          -
        Forfeitures                                      (53,480)     (2,308)
    -------------------------------------------------------------------------
        End of period                                    892,354   1,116,644
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Shares vested during the period                            -           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Number of common shares subject to the employee
     treasury stock purchase plan:
        Beginning of period                                    -     276,776
        Issued                                                 -           -
    -------------------------------------------------------------------------
        End of period                                          -     276,776
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Under the fair value method, the aggregate cost of the grants made under
    the retention plans are estimated to be $12.0 million - $0.3 million
    relating to Enermarket and $11.7 million (US$10.0 million) for Adams
    Harkness. The costs of the retention plans have been recognized in the
    financial statements of the Company in accordance with the vesting terms
    of the respective plans.

    Stock options

    On May 16, 2007, the Company granted stock options to five independent
    directors.  Each of the directors has been granted the option to purchase
    up to 25,000 common shares of the Company with an exercise price of
    $23.13 and a vesting period of 4 years. The term of the options is seven
    years.  The fair value of the stock options has been estimated on grant
    date using the Black-Scholes option pricing model with the following
    assumptions:

                                                                    May 2007
                                                                       Grant
    -------------------------------------------------------------------------
    Dividend yield                                                     1.80%
    Expected volatility                                               30.00%
    Risk-free interest rate                                            4.25%
    Expected life                                                    5 years

    Compensation expense of $41 has been recognized for the three months
    ended June 30, 2007.

    A summary of stock options outstanding is as follows:

                                                   For the three months ended
                                                   --------------------------
                                                       June 30,    June 30,
                                                         2007        2006
    -------------------------------------------------------------------------

    Beginning of period                                        -           -
    Grants                                               125,000           -
    -------------------------------------------------------------------------
    End of period                                        125,000           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Long term incentive plan

    The long term incentive plan ("LTIP") is a new plan implemented in the
    first quarter of fiscal 2008 pending shareholders' approval in August
    2007. Under the LTIP, eligible participants are awarded restricted share
    units which vest over three years. For employees in Canada, an employee
    benefit trust (the "Trust") has been established, and either (a) the
    Company will fund the Trust with cash which will be used by a trustee to
    purchase on the open market common shares of the Company that will be
    held in trust by the trustee until restricted share units vest or (b) the
    Company will issue common shares from treasury to participants following
    vesting of restricted share units. For employees in the United States and
    the United Kingdom, at the time of each restricted share unit award, the
    Company will allot common shares and these shares will be issued from
    treasury at the time they vest for each participant. The shares issued as
    part of the LTIP will generally be offset by purchases under the
    Company's normal course issuer bid.

    On June 5, 2007, the Board approved the award of 475,168 restricted
    common share units in lieu of cash compensation to employees.

    The cost of the restricted share units are amortized over the vesting
    period of three years.  Compensation expense of $1,932 has been
    recognized for the three months ended June 30, 2007.


                                                   For the three months ended
                                                   --------------------------
                                                       June 30,    June 30,
                                                         2007        2006
    -------------------------------------------------------------------------

    Awards outstanding, beginning of period                    -           -
    Granted                                              475,168           -
    Vested                                                     -           -
    -------------------------------------------------------------------------
    Awards outstanding, end of period                    475,168           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                   For the three months ended
                                                   --------------------------
                                                       June 30,    June 30,
                                                         2007        2006
    -------------------------------------------------------------------------

    Common shares held by Trust, beginning of period           -           -
    Acquired                                             401,239           -
    Released on vesting                                        -           -
    -------------------------------------------------------------------------
    Common shares held by Trust, end of period           401,239           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    11. RELATED PARTY TRANSACTIONS

    Security trades executed by the Company for employees, officers and
    directors are transacted in accordance with the terms and conditions
    applicable to all clients. Commission income on such transactions in the
    aggregate is not material in relation to the overall operations of the
    Company.

    Accounts receivable and accounts payable and accrued liabilities include
    the following balances with related parties:

                                           June 30,    March 31,   June 30,
                                             2007        2007        2006
                                              $           $           $
    -------------------------------------------------------------------------
    Accounts receivable                       49,490      49,694      35,815
    Accounts payable and accrued liabilities  81,169      85,795      86,745
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    12. SEGMENTED INFORMATION

    The Company has two operating segments:

        Private Client Services - provides brokerage services and investment
        advice to retail or private clients.

        Canaccord Adams - includes investment banking, research and trading
        activities on behalf of corporate, institutional and government
        clients as well as principal trading activities in Canada, the United
        Kingdom and the United States of America.

    The Corporate and Other segment includes correspondent brokerage
    services, interest and foreign exchange revenue and expenses not
    specifically allocable to Private Client Services and Canaccord Adams.

    The Company's industry segments are managed separately because each
    business offers different services and requires different personnel and
    marketing strategies. The Company evaluates the performance of each
    business based on income (loss) before income taxes.

    The Company does not allocate total assets or equipment and leasehold
    improvements to the segments. Amortization is allocated to the segments
    based on square footage occupied.  There are no significant inter-segment
    revenues.

    For the three months ended June 30,

                                                      2007
                            -------------------------------------------------
                                             Private   Corporate
                               Canaccord      Client         and
                                   Adams    Services       Other       Total
                                   $            $           $           $
    -------------------------------------------------------------------------
    Revenues                     155,023      76,083      14,764     245,870
    Expenses                     101,146      55,346      21,578     178,070
    Amortization                     911         430         636       1,977
    Development costs              4,292       1,372       1,509       7,173
    -------------------------------------------------------------------------
    Income (loss) before
    income taxes                  48,674      18,935      (8,959)     58,650
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                                      2006
                            -------------------------------------------------
                                             Private   Corporate
                               Canaccord      Client         and
                                   Adams    Services       Other       Total
                                   $            $           $           $
    -------------------------------------------------------------------------
    Revenues                     125,106      72,286       8,735     206,127
    Expenses                      89,285      53,286      18,525     161,096
    Amortization                     950         410         629       1,989
    Development costs              1,287       1,521       1,059       3,867
    -------------------------------------------------------------------------
    Income (loss) before
    income taxes                  33,584      17,069     (11,478)     39,175
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The Company's business operations are grouped into four geographic
    segments as follows:

                                                   For the three months ended
                                                   --------------------------
                                                       June 30,    June 30,
                                                         2007        2006
                                                          $           $
    -------------------------------------------------------------------------
    Canada
      Revenue                                            162,093     133,250
      Equipment and leasehold improvements                23,969      20,950
      Goodwill and other intangible assets                 4,270       4,521

    United Kingdom
      Revenue                                             47,501      48,892
      Equipment and leasehold improvements                 9,076       1,148

    United States
      Revenue                                             26,422      23,985
      Equipment and leasehold improvements                 6,186       2,351
      Goodwill and other intangible assets                29,310      23,054

    Other Foreign Location
         Revenue                                           9,854           -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    13. COMMITMENTS AND CONTINGENCIES

    During the period, there have been no material changes to the Company's
    commitments or contingencies from those described in Note 16 of the March
    31, 2007 Audited Annual Consolidated Financial Statements.

    14. SUBSEQUENT EVENT

    Dividend

    On August 1, 2007, the Board of Directors declared a common share
    dividend of $0.125 per share payable on September 10, 2007, with a record
    date of August 24, 2007.

    SHAREHOLDER INFORMATION

    Corporate headquarters:              Institutional investors, brokers
    Street address:                      and security analysts:
    Canaccord Capital Inc.               For financial information
    2200 - 609 Granville Street          inquiries contact:
    Vancouver, BC, Canada                Katherine Young
                                         Vice President, Investor Relations
    Mailing address:                     2200 - 609 Granville Street
    P.O. Box 10337                       Vancouver, BC, Canada
    Pacific Centre                       Phone: 604-643-7013
    2200 - 609 Granville Street          Fax: 604-601-5863
    Vancouver, BC, V7Y 1H2, Canada       Email:
                                         katherine _young@canaccord.com
    Stock exchange listing:
    TSX: CCI                             The CCI fiscal 2007 Annual Report
    AIM: CCI                             is available on our Web site at
                                         www.canaccord.com. For a printed
    General shareholder inquiries        copy please contact the Investor
    and information:                     Relations department.

    Investor Relations
    2200 - 609 Granville Street
    Vancouver, BC, Canada
    Phone: 604-643-0128
    Fax: 604-643-1878
    Email:
    investor_relations@canaccord.com

    Media relations:
    Scott Davidson
    Managing Director, Global Head of
    Marketing & Communications
    Phone: 416-869-3875
    Email:
    scott_davidson@canaccord.com


    Fiscal 2008 expected dividend(1) and earnings dates

                       Earnings               Dividend              Dividend
                   release date            record date          payment date
    -------------------------------------------------------------------------
    Q1/08        August 2, 2007        August 24, 2007    September 10, 2007
    Q2/08      November 8, 2007      November 30, 2007     December 10, 2007
    Q3/08      February 7, 2008      February 22, 2008        March 10, 2008
    Q4/08          May 15, 2008           May 30, 2008         June 10, 2008
    -------------------------------------------------------------------------
    (1) Dividends are subject to Board of Directors approval.  All dividend
        payments will depend on general business conditions and the Company's
        financial conditions, results of operations and capital requirements
        and such other factors as the Board determines to be relevant.


    Shareholder administration:          Email: service@computershare.com
    For information about stock          Internet: www.computershare.com
    transfers, address changes,          Offers enrolment for self-service
    dividends, lost stock certificates,  account management for registered
    tax forms and estate transfers,      shareholders through Investor
    contact:                             Centre.
                                         Financial information:
    Computershare Investor               For present and archived financial
    Services Inc.:                       information, please visit
    100 University Avenue, 9th Floor     www.canaccord.com/
    Toronto, ON, M5J 2Y1                 financialreports
    Phone: 1-800-564-6253
    (toll-free within North America)     Auditor:
    514-982-7555 (international)         Ernst & Young LLP
    Fax: 1-866-249-7775                  Chartered Accountants
    (toll-free within North America)     Vancouver, BC
    or                                   Corporate web site:
    416-263-9524 (international)         www.canaccord.com

    





For further information:

For further information: North American media: Scott Davidson, Managing
Director, Global Head of Marketing & Communications, Phone: (416) 869-3875,
email: scott_davidson@canaccord.com; London media: Bobby Morse or Ben Willey,
Buchanan Communications (London), Phone: +44 (0) 207 466 5000, email:
bobbym@buchanan.uk.com; Investor relations inquiries: Katherine Young Vice
President, Investor Relations, Phone: (604) 643-7013, email:
katherine_young@canaccord.com; Nominated Adviser: Ben Money-Coutts, Bridgewell
Limited (London), Phone: +44 (0) 207 003 3000, email:
ben.money-coutts@bridgewell.co.uk


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890