Coventree Provides Update on Nereus Notice of Application

    Toronto Stock Exchange Symbol: COF

    TORONTO, March 29 /CNW/ - Coventree Inc. (TSX:COF) ("Coventree") today
provided an update on the previously announced notice of application filed by
certain minority shareholders of Nereus Financial Inc. ("Nereus"), a
subsidiary of Coventree. The respondents to this application included
Coventree, which indirectly owns 75.6% of the outstanding shares of Nereus.
    Certain relief claimed by the applicants was considered by the Superior
Court of Justice of Ontario at a hearing held on March 21 & 22, 2007. The
central matter at this hearing related to the proper governance of Nereus.
Prior to the notice of application, Coventree caused a meeting of the
shareholders of Nereus to be held and, at that meeting, replaced most of the
previous Nereus directors with Coventree nominees in accordance with its
rights under the Nereus Shareholder Agreement. The minority shareholders were
seeking an order that restores the previous board in part so it could pursue
certain claims that Nereus may have against Coventree arising under the Nereus
Shareholders' Agreement.
    On this particular matter, the court ruled on March 27, 2007, that the
meeting of shareholders was invalid and that the Board that existed before
this meeting is the Board that should govern the business and affairs of
Nereus. The decision precludes Coventree from exercising its rights to elect a
majority of the directors and through its nominees, exercise control over the
business and affairs of Nereus. Coventree disagrees with the decision and
intends to explore all of its appeal rights. Coventree does not believe the
court's decision, even if upheld, is material to its ongoing business

    About Coventree

    Coventree is a financial services company that focuses on specialized
niches. Coventree's objective is to differentiate itself by establishing
long-term, mutually beneficial relationships with its partners including its
customers, owners, employees and suppliers. Currently, Coventree has a niche
investment bank that specializes in structured finance using
securitization-based financing technology. Coventree also administers
asset-backed commercial paper conduits on behalf of third parties.

    %SEDAR: 00024386E

For further information:

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

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