CGI Reports Audited 2008 Fina

RNS Number : 1201N

Canadian General Investments Ld

10 February 2009

NEWS RELEASE TRANSMITTED BY MARKETWIRE

FOR: CANADIAN GENERAL INVESTMENTS, LIMITED

TSX SYMBOLS: CGI, CGI.PR.B, CGI.PR.C

LONDON STOCK EXCHANGE: CGI

FEBRUARY 10, 2009

Canadian General Investments Reports Audited 2008 Financial Results

TORONTO, CANADA - Canadian General Investments, Limited's (CGI) net asset value per share (NAV) at December 31, 2008 was $13.93, down from the NAV of $31.94 at year end 2007. The NAV return, with dividends reinvested, for 2008 was -55.9%, compared with a -33.0% total return for the benchmark S&P/TSX Composite Index (S&P/TSX). CGI's net asset value was $290,477,000, down 56.4% from the 2007 year-end value of $666,323,000.

As a result of deteriorating global economic conditions and increasingly negative market sentiment as the year progressed, declines were broadly based, as nine of the ten S&P/TSX sectors were down 20% or greater for the year. In particular, the two largest sectors of the S&P/TSX, Financials and Energy, which together comprised 56.6% of the benchmark at year end, were down by 36.5% and 33.9%, respectively. CGI's underperformance relative to the benchmark can be largely attributed to two factors: i) an overweighting of the portfolio in smaller capitalization stocks and ii) the leverage provided by the Company's preference shares, which served to magnify negative portfolio returns.

The S&P/TSX Composite Index is a market capitalization-weighted index that is comprised of the companies with the largest market caps that are listed on the Toronto Stock Exchange. Although smaller capitalization stocks have served to enhance portfolio returns for CGI in the past, liquidity concerns, a move to higher quality, defensive names and financing issues negatively impacted this group, particularly during the second half of the year. The S&P/TSX SmallCap Index and the S&P/TSX Venture Composite Index were down 45.5% and 71.9%, respectively, in 2008.

CGI paid four regular quarterly dividends of $0.06 per common share in both 2008 and 2007. Although the Company had paid a year-end special capital gains dividend in 2007, market conditions precluded the payment of such dividend in 2008. Based on the year-end common share price of $9.12, total dividend payments during 2008 represented a yield of 2.6%.

CGI is a closed-end equity fund, focused on medium to long-term investments in primarily Canadian corporations. Its objective is to provide better than average returns to investors through prudent security selection, timely recognition of capital gains and appropriate income generating instruments.

FINANCIAL HIGHLIGHTS

(in thousands of dollars, except per share amounts)

For the Year Ended

	December 31, 2008	December 31, 2007

Net investment loss	(453)	(7,181)
Net gain (loss) on investments	(391,533)	55,802
Increase (decrease) in net assets resulting from operations	(391,986)	48,621
Increase (decrease) in net assets resulting from operations per share	(18.79)	2.35

As at

	December 31, 2008	December 31, 2007

Selected data(1)
Net asset value	290,477	666,323
Net asset value per share	13.93	31.94

Selected data according to GAAP(1)
Net assets	288,011	662,776
Net assets per share	13.81	31.77

(1) The Company calculates the net asset value and net asset value per share on the basis of the valuation principles set out in its annual information form. These valuation principles differ from the requirements of Canadian generally accepted accounting principles (GAAP), with the main difference relating to securities that are listed on a public stock exchange. While the Company values such securities based on the latest sale price, GAAP requires the use of the closing bid price. Accordingly, bid prices are used in determining net assets and net assets per share for purposes of the interim and annual financial statements.

In the United Kingdom, copies of the Company's financial reports will be made available at the U.K. branch transfer agent, Computershare Investor Services PLC, P.O. Box 82, The Pavilions, Bridgwater Road, Bristol, BS99 6ZY. Phone 0870-702-0000.