BAM Investments Announces First Quarter Results

TORONTO, ONTARIO -- (MARKET WIRE) -- 05/15/08 -- BAM Investments Corp. (TSX: BNB) today announced its financial results for the first quarter ended March 31, 2008.

The company recorded net income of $51.5 million for the quarter ended March 31, 2008, compared with $3.1 million in the same period last year. The increase in net income is the result of receiving a special dividend from the Brookfield Class A shares valued at $50.1 million. After providing for interest and preferred share dividends on financing obligations, net income per common share was $1.10 for 2008, compared with $0.36 in 2007.

The company's principal investment is a direct and indirect interest in 55.5 million Class A Limited Voting shares ("Class A shares") of Brookfield Asset Management Inc. ("Brookfield").

Consolidated Statements of Operations -------------------------------------------------------------------------- Three months ended March 31 ----------------------------(unaudited) $thousands, except per share amounts 2008 2007 --------------------------------------------------------------------------Investment income Dividends, interest and other $ 7,792 $ 7,823 Special dividend 50,056 --------------------------------------------------------------------------- 57,848 7,823

Expenses Operating 222 466 Interest expense 1,027 1,075 Amortization of deferred financing costs 418 378 Subsidiary preferred share dividends 5,118 4,111 -------------------------------------------------------------------------- 6,785 6,030 --------------------------------------------------------------------------Net income (loss) before income taxes 51,063 1,793 Future income taxes 462 1,297 --------------------------------------------------------------------------Net income 51,525 3,090 Preferred share dividends - (213) --------------------------------------------------------------------------Net income for common shareholders $ 51,525 $ 2,877 ----------------------------------------------------------------------------------------------------------------------------------------------------Net income per common share $ 1.10 $ 0.36 ----------------------------------------------------------------------------------------------------------------------------------------------------

Net Book Value

The net book value of the company's common shares as at March 31, 2008 based on the stock market price of Brookfield's Class A shares of $27.61 was $13.45 per share. BAM Investments holds 6.98 Brookfield Class A shares for every 10 common shares of BAM Investments. The information in the following table has been extracted from the company's consolidated balance sheet as at March 31, 2008.

Statement of Financial Position --------------------------------------------------------------------------- As at March 31, 2008 ($thousands, except per share amounts) Net Asset Value --------------------------------------------------------------------------- Assets Investment in Brookfield Asset Management Inc.(1) $ 1,531,421 Investment in Brookfield Infrastructure Partners(2) 42,276 Cash and equivalents 51,616 Other assets 9,575 --------------------------------------------------------------------------- $ 1,634,888 ------------------------------------------------------------------------------------------------------------------------------------------------------Liabilities Accounts payable and provisions $ 2,238 Retractable preferred shares(3) 398,056 Future tax liabilities(4) 166,508 --------------------------------------------------------------------------- 566,802

Shareholders' Equity Common shares 1,068,086 --------------------------------------------------------------------------- $ 1,634,888 ------------------------------------------------------------------------------------------------------------------------------------------------------Net Asset Value Per Common Share(5) $ 13.45 ------------------------------------------------------------------------------------------------------------------------------------------------------ Notes: (1) The investment in Brookfield Asset Management Inc. consists of 55.5 million Class A shares at a bid price of $27.61 per Brookfield share at March 31, 2008. This represents the total shares owned of 60.8 million Class A shares less 5.3 million Class A that have been set aside for settlement of the long-term exchangeable debentures issued by the company.

(2) The investment in Brookfield Infrastructure Partners consists of 2.4 million limited partnership units at a bid price of $17.39 per unit.

(3) Represents $405 million retractable preferred shares issued by BAM Split Corp, which is a subsidiary of the company, net of unamortized issuance costs.

(4) The future tax liability represents the potential future income tax liability of the company based on the difference between the carrying values of the company's assets and liabilities and their respective tax values, as well as giving effect to estimated capital and non-capital losses as at the date of this statement.

(5) As at March 31, 2008, there were 79,418,910 common shares of the company issued and outstanding.

Note: This news release contains "forward-looking statements". The words "potential" and "estimated" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the company's continuous disclosure documents. The company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contacts: BAM Investments Corp. Brian D. Lawson President and Chief Executive Officer (416) 359-8620

2008-05-15 20:24:18 0363593 MARKETWIRE