Coventree Announces Initial Response to Proposal Regarding ABCP Market

    Toronto Stock Exchange Symbol: COF

    TORONTO, Aug. 16 /CNW/ - Coventree Inc. (TSX: COF) today announced its
initial response to a proposal (the "Proposal") made by a consortium
representing banks, asset providers and major investors (the "Consortium") in
certain Canadian asset-backed commercial paper ("ABCP"), including that issued
by Coventree-sponsored conduits. Certain details of the Proposal were
announced in a press release issued by Consortium members earlier today. Under
the Proposal, Consortium members agreed in principle to take significant steps
to establish "normal operations in the Canadian third party ABCP market".
    Coventree is supportive of the Consortium's efforts to stabilize the ABCP
market reflected in the Proposal, subject to Coventree's full assessment of
the impact of the Proposal on Coventree and its conduits and approvals to
implement the Proposal. In response to the Proposal, Coventree, on behalf of
its conduits, has not issued draw down notices in respect of its conduits'
liquidity-backed ABCP that matured today. Coventree continues to review the
Proposal to assess the Proposal's impact on Coventree and its conduits and
will update its shareholders in due course.

    Forward-Looking Statements

    This press release includes certain forward-looking statements, including
those identified by the expressions "may", "would", "could", "will",
"anticipate", "believe", "plan", "forecast", "estimate", "expect", "intend",
"aim", "vision", "mission", "endeavour" and similar expressions to the extent
they relate to Coventree or its leaders or management ("leaders"). The
forward-looking statements are not historical facts but reflect such leaders'
current expectations regarding future results or events based on information
currently available to the leaders.
    These forward-looking statements are subject to a number of known and
unknown risks, uncertainties and assumptions. Many factors could cause actual
results, performance or events to differ materially from current expectations
that may be expressed or implied by such forward-looking statements,
including, without limitation, the matters discussed under "Risk Factors"
contained on pages 58 to 65 of the Company's Final Prospectus dated November
15, 2006 and in other sections herein and therein. Should one or more of these
risks or uncertainties materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results, performance or
achievements could vary materially from those expressed or implied by the
forward-looking statements contained in this report. These factors should be
considered carefully and prospective investors should not place undue reliance
on the forward-looking statements. Although the forward-looking statements
contained in this report are based upon what the Company's leaders currently
believe to be reasonable assumptions, the leaders cannot assure prospective
investors that actual results, performance or achievements will be consistent
with these forward-looking statements. These forward-looking statements are
made as of the date of this report and the Company does not intend, and does
not assume any obligation, to update or revise these forward-looking

    %SEDAR: 00024386E

For further information:

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

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