Clarke Inc. announces increased investment in Madacy Entertainment Income Fund

    TSX: CKI; CKI.DB; CKI.DB.A

    HALIFAX, Oct. 16 /CNW/ - Clarke Inc. ("Clarke") announces that it has
acquired 160,798 units of Madacy Entertainment Income Fund ("Madacy") bringing
its total holdings in Madacy to 1,462,998 units representing approximately
19.40% of the total outstanding units of Madacy.
    The Madacy units held by Clarke and George Armoyan, the President and
Chief Executive Officer of Clarke, and members of his immediate family with
whom he resides, together total 1,507,998 units, representing approximately
19.99% of the total outstanding units of Madacy.
    The purchase of the Madacy units by Clarke was made through the
facilities of the Toronto Stock Exchange for investment purposes. Clarke may,
from time to time, acquire additional units of Madacy, dispose of some or all
of the existing or additional units of Madacy, or continue to hold the units
of Madacy in the normal course of Clarke's investment activities.
    The issuance of this news release does not constitute an admission by
Clarke that it is acting jointly or in concert with Mr. Armoyan and members of
his immediate family with whom he resides with respect to units of Madacy.

    About Clarke

    Clarke is a Halifax-based activist and catalyst investment company with a
diversified portfolio of strategic and opportunistic investments, including
several wholly-owned subsidiaries operating in the transportation services
industry. From time to time, Clarke also participates in joint ventures when
they offer the opportunity to create shareholder value. Led by George Armoyan
and an entrepreneurial team of professionals focused on uncovering and
creating value, Clarke invests in undervalued businesses and participates
actively where necessary to enhance performance and increase returns. In 2006
alone, Clarke delivered a shareholder return on investment, including
dividends, of 33%. Clarke's securities trade on the Toronto Stock Exchange
(CKI, CKI.DB; CKI.DB.A); for more information about Clarke Inc., please visit
our website at www.clarkeinc.com.
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For further information:

For further information: Melinda Lee, Vice President Investments, Clarke
Inc., (902) 442-3420, Fax: (902) 423-4001