WINNIPEG, Manitoba— Crocus Investment Fund announced today that the Board of Directors has received nearly all the external valuation reviews being undertaken by independent valuators as part of the voluntary portfolio valuation review launched in December. "The Board has received the majority of the external valuation reviews and expects to receive the last of fifteen reviews in the coming days," said Peter Olfert, Acting Chair of the Crocus Board. "These fifteen reviews provide the Fund with an independent estimate of value for approximately 88% of the portfolio based on the Fund’s total assets at the time the Fund voluntarily stopped trading on December 10, 2004. These independent reviews will be instrumental as we work to conclude the valuation work in the weeks ahead. It is clear now that the Fund’s overall asset value will decline by a material amount, although I must stress that the final price is not known at this time."

Once the valuation work is complete, the Fund will be in a position to strike a new price for shares based on the overall fair value of the assets in the Fund. At that time the Fund also intends to conclude and file its 2004 Audited Annual Financial Statements and to request approval from the Manitoba Securities Commission (MSC) to re-open the Fund to redemptions. Immediately following these steps, the Fund anticipates filing its prospectus for approval by the MSC, which is a pre-requisite to the Fund selling new shares. The Fund is also working closely with the Office of the Auditor General of Manitoba on its limited review related to the Fund’s value.

"We are doing everything in our control to complete the valuation work, conclude the 2004 Audited Annual Financial Statements, and set the new share price as soon as possible," said Alfred Black, Interim CEO of Crocus. "This will allow the low number of Crocus shareholders who hold shares eligible for redemption to exercise that option if they so choose. It is important to note that the new price will reflect the fair value of the Fund’s assets as determined by the Board at that "point in time," and that the actual rate of return for the vast majority of shareholders will only be known when they redeem their shares in the future." Mr. Black went on to say, "the Fund has a strong core of companies in its portfolio and we believe investors will share our optimism about the potential in these companies going forward."

Crocus also confirmed the Fund will not be for sale prior to the end of February.

"It is now clear that the Fund will not be in a position to have both internal and external reviews completed, and a new prospectus in place before the end of February," said Mr. Black. "We all agreed it was important to make this decision now, so financial advisors and investors who are considering Crocus can finalize investment and tax planning choices at this time. I want to stress, however, that the Fund anticipates the resumption of trading as soon as possible."

Crocus also announced that new board members would not be appointed at this time. "We have been and will continue to talk to qualified candidates about joining the Crocus Board," said Mr. Olfert. "This is a high priority and we have received strong support from a number of people who can bring significant value to the Board. We have determined, however, that it is not reasonable to expect new board members to participate in setting the value for the Fund given where we are in the process today. The Board will continue with the recruitment process and expects to select new members as soon as possible after the new price is established."

Crocus also announced that Deloitte and Touche LLP has been retained to undertake a forward-looking review of the Fund’s governance structure and practices to assist the Crocus Board of Directors in setting a course for the future. "It is important to look beyond setting the new share price and prepare for resumption of full operations," said Mr. Olfert. "Deloitte and Touche can help by recommending changes they believe should be made to the Fund’s governance structure and practices to maximize the effectiveness of the Board, its committees, and Executive Management in the future. As always our goal is to maximize long-term benefit for all shareholders and this, among other steps we are taking, will help achieve that outcome. In the interim we will manage the Fund’s investments in the best interests of all shareholders."