Winnipeg, Manitoba-The Board of Directors of Crocus Investment Fund today advised that the Fund would not return to sale. Having made this decision, Crocus will look for the best way to realize maximum value for shareholders from the Fund's portfolio and other assets.

"The new Board has worked closely with management and concluded that the Crocus Investment Fund should not return to market," said Van Hall, Chair of the newly formed Crocus Board of Directors. "In our view, damage to the Fund's reputation, the high net operating costs (run rate), poor investment performance, the threat of litigation, and other factors make it irresponsible for the Board to ask Manitobans to invest in the Fund at this time. We have concluded that the financial interests of shareholders is best served by working with any and all interested parties to dispose of the assets in the portfolio in a manner that realizes maximum value for shareholders. This is a complicated process and the realized value for shareholders will only be known when the process is complete. In the interim, the Board can make no representation about the realizable value of the portfolio and the corresponding price per share. Accordingly, it is important for shareholders to know that the estimated price of approximately $7 per share is not certain at this time."

Crocus Investment Fund was created and operates under the Crocus Investment Fund Act and is subject to provisions of the Income Tax Act, the Corporations Act, and other regulatory authorities. The Fund also has three distinct classes of shareholders: "Class A" common shareholders (individual investors), "Class I" Institutional shareholders, and "Class G" (Government of Manitoba). Changes to the Fund's operating practices may be subject to shareholder and regulatory approval.

There are a number of significant issues impacting the decision on how to realize maximum value for shareholders and the Board has engaged Deloitte and Touche, LLP to help define this process. The Board expects to have Deloitte and Touche initiate the process as soon as possible with the aim of making a recommendation to shareholders by early fall.

The Fund has received expressions of interest from a number of parties including (but not limited to) Ensis Management, the company that operates the Ensis Growth Fund in Manitoba, Winnipeg-based Jovian Capital, and GrowthWorks Capital, a management company from British Columbia that manages a number of Canadian Labour Sponsored Investment Funds. The Fund has also been contacted by a number of venture capital firms that have expressed interest in acquiring Crocus's ownership in various Crocus portfolio businesses. All communication received from interested parties to date will be referred to Deloitte and Touche.

"There are many strong companies in the portfolio and the only process that will be acceptable to the Board and to Crocus shareholders, is one that realizes maximum value from these assets," added Mr. Hall. "There are a number of options that range from selling the assets to merging the Fund with another entity, and a myriad of legislative and regulatory issues to consider. We will work closely with the businesses in the portfolio and evaluate all viable options in an orderly and timely manner through a structured process. Shareholders can be assured the Board will expedite the process to protect shareholder value."