Coventree Announces Further Workforce Reductions as Part of Wind Down Process

    Toronto Stock Exchange Symbol: COF

    TORONTO, May 21 /CNW/ - Coventree Inc. (TSX: COF) ("Coventree" or the
"Company") today announced further planned workforce reductions as part of the
continuing orderly wind down of its operations. As previously disclosed, as
part of these reductions, Bridget Child is departing as Chief Financial
Officer, David Allan is departing as Head of Capital Markets, and Doug
Onofrychuk is departing as Head of Administration, effective immediately.
    With these workforce reductions, Coventree currently has four full-time
    "On behalf of the Board, I want to thank Bridget, David and Doug for
their contributions to Coventree," said Brendan Calder, Chair of the Board of
Coventree. "All three have been valued members of the Coventree leadership
team and played important roles in helping the Company deal with the effects
of the ABCP market disruption for the benefit of Coventree and its
stakeholders. Bridget worked tirelessly to address the changing and complex
accounting landscape that Coventree faced during the seven years that she was
at Coventree. David's leadership during the ABCP market disruption and
subsequent restructuring was invaluable. Doug played a critical role in
leading the Administration business unit through the many challenges it faced
during the market disruption and subsequent restructuring. We wish them all
the best in the future."
    The Company expects that, as a result of the departure of these and other
employees, it will pay an aggregate of approximately $4.5 million in
severance, termination and other costs in its third quarter ending June 30,
2009. Approximately $3.7 million of this amount was included in the
restructuring activities charge recorded by the Company during the fourth
quarter of fiscal 2008. It is expected that the remaining $0.8 million will be
recorded as an expense in the Company's third quarter ending June 30, 2009.
    Coventree's Board of Directors appointed Ani Hotoyan-Joly as the new
Chief Financial Officer. Mrs. Hotoyan-Joly is a Chartered Accountant and has
worked at Coventree for approximately four years. Prior to joining Coventree,
she was Vice President and Chief Financial Officer of Swiss Reinsurance
Company Canada.

    Forward-Looking Statements
    This press release includes a forward-looking statement relating to the
Company's expectation relating to the termination and other costs to be paid
in connection with the workforce reductions described above. This statement
can be identified by the expression "expects". This forward-looking statement
is not a historical fact but reflects Coventree's current expectations
regarding future events based on information currently available to Coventree.
    This forward-looking statement is subject to a number of known and
unknown risks, uncertainties and assumptions. Many of these risks and
uncertainties could cause Coventree to vary the cost to be paid in connection
with the work force reductions described above. Should one or more of these
risks or uncertainties materialize, or should assumptions underlying the
forward-looking statement prove incorrect, the Company may vary the cost to be
paid in connection with the work force reductions described above. These
factors should be considered carefully and prospective investors should not
place undue reliance on this forward-looking statement. This forward-looking
statement is made as of the date of this press release and Coventree does not
intend, and does not assume any obligation, to update or revise it, except as
required by law.

For further information:

For further information: Craig Armitage, The Equicom Group Inc., Tel:
(416) 815-0700 x278, Email:

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