Coventree Reports Fiscal 2010 Financial Results

NEX Symbol: COF.H

TORONTO, Nov. 24 /CNW/ - Coventree Inc. (NEX: COF.H) ("Coventree" or the "Company") today announced its financial results for the fiscal year ended September 30, 2010. All amounts are reported in Canadian dollars.

Financial Highlights

Coventree's net loss for the fiscal year ended September 30, 2010 was $14.2 million, compared to net income of $0.7 million for the previous fiscal year.

Total revenue for the year decreased by $11.5 million compared to the previous year.  The only source of revenue in 2010 is interest income from investments and, in the third quarter, a $1 million recovery under a directors and officers' insurance policy.

Operating expenses for the 2010 fiscal year increased by $0.6 million compared to the previous year.  The net increase of $0.6 million is the result of, among other things, a decrease in compensation and benefits of $5.5 million as there are fewer employees, a decrease in administration expenses of $1.3 million as there are less expenses related to the administration of the Company, and an increase in consulting and legal fees related to the Ontario Securities Commission ("OSC") hearing of $7.4 million as the Company prepared for the defence of and attended the OSC hearing during the fiscal year.  Consulting and legal fees related to the OSC hearing for the 2010 fiscal year were $11.2 million, compared to $3.8 million in the previous year.

For the twelve months ended September 30, 2010, there was a $2.0 million unrealized pre-tax loss on its investment in shares of Xceed Mortgage Corporation compared to an unrealized pre-tax gain of $1.8 million for the twelve months ended September 30, 2009.

The Company's Management Discussion and Analysis and audited consolidated financial statements for the fiscal year ended September 30, 2010 will be available under the "Coventree Owners" section of the Company's website at www.coventree.ca and on SEDAR at www.sedar.com.

Outlook

Coventree is continuing to proceed with its previously announced plans to wind down the Company and its operations. In that regard, at the Company's annual and special meeting of shareholders on June 30, 2010, shareholders approved a special resolution authorizing the winding up of the Company and the distribution of its remaining assets, if any, to shareholders.  The winding up of the Company will commence and become effective at a time to be determined by the Company's board of directors.  The board intends to set the effective date as promptly as practicable following the final determination of the OSC hearing described above.  However, the timing of any formal winding up of the Company and the amount and timing of any distribution of funds to shareholders under such a winding up cannot be determined at this time. A number of factors, some of which are beyond the Company's control, could affect the timing of, or the amount of funds available for distribution upon, a formal winding up of the Company, including the OSC hearing described above.   The OSC hearing is the principal matter to be resolved prior to the implementation by the Company of its winding up and distribution of its remaining assets.  In that regard, the OSC hearing has continued for a total of 41 hearing days since commencing on May 12, 2010, and is scheduled to resume on December 1, 2010.  The Company expects that the hearing will conclude in mid-December 2010; however, there can be no assurance as to when the OSC will issue its decision in the matter.

Forward-Looking Statements

This press release includes certain forward-looking statements relating to the Company's expectations to wind down its operations and to implement a formal winding up of the Company and as to when the OSC hearing will conclude. These statements can be identified by the expressions "will", "expects" and "intends". These forward-looking statements are not historical facts but reflect Coventree's current expectations regarding future events based on information currently available to Coventree.

These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions which may be substantial. Many factors could cause actual results or events to differ materially from current expectations that may be expressed or implied by such forward-looking statements, including, without limitation, the various matters discussed under "Risks and Uncertainties" contained on pages 12 and 13 of the Company's Management Discussion and Analysis for the fiscal year ended September 30, 2010 which is available under the Company's profile on SEDAR at www.sedar.com. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, the Company may not be able to wind down its operations or implement a formal winding up of the Company in the near future or at all; the amount of funds available to be distributed to shareholders pursuant to such a winding up could be significantly reduced and/or the timing of the distribution of such funds could be significantly delayed; and the OSC hearing could continue well beyond mid-December 2010. These factors should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. These forward-looking statements are made as of the date of this press release and Coventree does not intend, and does not assume any obligation, to update or revise these forward-looking statements, except as required by law.

This press release is intended for distribution in Canada only.

Neither TSX Venture Exchange nor it Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

%SEDAR: 00024386E

For further information:

Craig Armitage, The Equicom Group Inc.
Tel: [phone] x278
Email: [email protected]
-or-
Ani Hotoyan-Joly, Coventree Inc.
Tel: [phone]
Email:  [email protected]