Effective on Friday, September 24, 2004, Crocus Investment Fund set its year-end share price at $10.61, a decline of $1.10 per share. The adjustment is primarily associated with ongoing information technology positions Crocus took in the late 90's where performance expectations have not materialized. The optimism in the sector last year has not been sustained.

The investment cycle for venture capital is typically five to ten years, which is consistent with Crocus's long-term investment strategy. As a result it is important to recognize that the year-end share price is a point-in-time reference of value, and that the ultimate outcome for any investment is known only when the investment position is sold.

Crocus continuously reviews its investment portfolio using a thorough, disciplined and professionally administered process. Valuing the portfolio in this manner is a key component of the Fund's continued commitment to transparency and accountability, and ensures that the Financial Statements provide a fair, accurate and timely indication of results for shareholders and prospective purchasers.

Crocus is Manitoba's largest labour-sponsored investment fund with over 34,000 shareholders and investments in about fifty small and mid-size Manitoba businesses across six sectors of the economy including science, medical and technology, entertainment and hospitality, manufacturing, financial services, transportation, and service. The Fund manages approximately $200 million in combined retail and institutional assets.

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