3rd Quarter & 9 Mths Results

Canadian General Investments Ld
19 October 2000

Canadian General Investments, Limited
Cdn General Investments Report Third Quarter Results


TORONTO, CANADA - CGI outpaced the market in the latest quarter as net assets
rose to $357,022,000 at September 30, 2000 from $346,108,000 at June 30 and from
$310,127,000 at the 1999 year-end. A mix of the continuation of our long term
investment strategy and capitalizing on the benefits of volatility pushed up
fully diluted net asset value per share by 2.9% to $17.21 for the three month
period to September 30, compared to a return of 1.8% for the TSE 300 Composite
Index. In part an outcome of the market volatility during the quarter, CGI's
realized gain on disposition of investments increased to the $47 million level,
or approximately $33 million after tax. 

On October 19, 2000 the Board of Directors announced a special capital gains
dividend valued at $2.00 to be paid on December 30 to shareholders of record on
December 18, 2000. The special dividend will be in the form of 30% cash and 70%
stock and will result in approximately 1,634,379 new shares issued from
treasury. This dividend, together with a $0.06 regular quarterly dividend to be
paid on December 15, will bring total 2000 distributions to $2.24, representing
a combined stock and cash yield of 21.1%, the cash element being 7.9%, based on
the $10.60 closing price of CGI's common shares on October 18. Under CGI's
status as an investment corporation, payment of the special dividend will result
in a recovery of approximately $10,900,000 of capital gains taxes paid, adding
$0.58 to net asset value per share. 

Portfolio Activities
Our strategy for technology is to maintain holdings in Canadian companies
exhibiting global leadership. However, partial profits were realized in several
technology holdings including Nortel Networks Corporation, JDS Uniphase Canada
Ltd., Alcatel Networks Corporation and BCE Emergis Inc. 

CGI's Nortel weighting rose to over 15% during the quarter but was reduced on
profit taking and a price correction to 6.4% by September 30. Nortel,
representing approximately one-third of the TSE 300 Index, was a negative
contributor to the Index this quarter, with its share price down 12.0%, and down
24.9% in September alone. 

In both financial and oil and gas stocks, CGI benefited by several take-overs.
We added to the banks, insurance companies and investment management firms,
increasing the weighting to 16.8%, and maintained the oil and gas weighting at
close to 14%. The Corporation continues to be focussed on both sectors. Both
retain strong consolidation and expansionary prospects. It is noted that banks
are still not overvalued relative to global equivalents and Canada's energy
sector remains a leader in terms of market representation at a time when
interest in available energy resources seems to be escalating. At the same time,
CGI is positioned in alternative energy systems and emissions control, as
illustrated by one of the largest holdings, Ballard Power Systems Inc. 

Outlook
Strong growth in Canada is still generally predicted for the months ahead. Many
Canadian companies that are global leaders in their fields should retain
strength and prominence. The economy appears still to be backed by manageable
interest rate levels. 

CGI's management believes that information technology, which gets most of the
market's attention, will continue to thrive long-term as a sub-sector of the
economy. 

The Manager
During the quarter, MMA Investment Managers Limited, which has managed the
portfolio since 1956, was renamed Morgan Meighen & Associates Limited to reflect
the present as well as the past. The name recognizes the roles of MMA's late
founder, Maxwell C.G. Meighen and his father the Right Hon. Arthur Meighen who
was one of the founders of CGI in 1930. Today, the management company is led by
Maxwell Meighen's successor, E. Louise Morgan, Chairman of CGI, who joined the
Corporation as well as the Manager in 1956. Earlier this year, her daughter
Vanessa Morgan joined the staff of the Manager as a Senior Vice-President.
Vanessa earned her CFA designation in 1991 and has over a decade of investment
and corporate management experience in the industry. She is working with Morgan
Meighen's private wealth management division and continues with her role as a
director and Vice-Chairman for CGI, Third Canadian General Investment Trust
Limited and Canadian World Fund Limited. 


FINANCIAL HIGHLIGHTS

                                    For the nine months ended September 30      
                                       ($000, except per share amounts) 
                                              2000              1999 
Increase in net assets 
from operations                         $   50,045      $      1,189 

Net assets                              $  357,022      $    269,343 

Net asset value per share - basic       $    18.96      $      14.32

Net asset value per share -            
  fully diluted                         $    17.21      $      13.39 

Income from investment operations 
 per share                              $     2.66      $       0.06 

In the United Kingdom, copies of the Corporation's third quarter report will be
made available at the U.K. Transfer Agent, CIBC Mellon Trust Company, Balfour
House, 390 High Road, Ilford, Essex, 1G1 1NQ. Phone [phone]. 



FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian General Investments, Limited 
Michael A. Smedley 
President 
Phone: [phone] 
Fax: [phone] 
e-mail: [e-mail]