Clarke Inc. announces increased investment in Royal Host Real Estate Investment Trust

    HALIFAX, Sept. 20 /CNW/ - Clarke Inc. ("Clarke") announces that it has
acquired $5,452,000 in aggregate principal amount of Royal Host Real Estate
Investment Trust ("Royal Host") convertible unsecured debentures
("Debentures"), Series A.
    The Debentures are immediately convertible into Royal Host units, at a
conversion rate of 166.67 units per $1,000 aggregate principal amount of
Debentures. In the aggregate, the Debentures held by Clarke are convertible
into 908,667 units of Royal Host, which combined with the 4,364,702 Royal Host
units held by Clarke, total 5,273,369 units, representing approximately 19.58%
of the outstanding units of Royal Host on a converted basis.
    The Royal Host units and Debentures (on a converted basis) held by Clarke
and the units held by George Armoyan, the President and Chief Executive
Officer of Clarke, together total 5,294,569 units, representing approximately
19.66% of the total outstanding units of Royal Host on a converted basis.
    The purchase of the Royal Host Debentures by Clarke was made through the
facilities of the Toronto Stock Exchange for investment purposes. Clarke may,
from time to time, acquire additional Royal Host units or Debentures, dispose
of some or all of the existing or additional units or Debentures, or continue
to hold the Royal Host units or Debentures 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 with respect
to Royal Host.

    About Clarke

    Clarke Inc. is the Halifax-based parent company of a number of
wholly-owned operating companies and divisions, and is an activist catalyst
investor with a diversified portfolio of strategic and opportunistic
investments. Clarke's operating companies are in the transportation services
business. 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, please visit our
website at
    %SEDAR: 00009934E

For further information:

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

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