West Street Capital Corp. Announces First Quarter Results

TORONTO, ONTARIO -- (MARKET WIRE) -- 05/30/08 -- West Street Capital Corporation ("West Street" or the "company") (TSX VENTURE: WSC)(TSX VENTURE: WSC.PR.A) reported net income for the three months ended March 31, 2008 of $0.4 million compared to $0.6 million in the same period at 2007. After providing for unpaid preferred share dividend obligations that accumulated during the three months ended March 31, 2008, the net loss per common share was $0.03 compared with a net loss of $0.02 per common share during the three months ended March 31, 2007.

Dividends, interest and other income totalled $0.7 million for the three months ended March 31, 2008, in comparison to $0.6 million in the same period in 2007 and consists principally of dividends and interest earned on the company's securities portfolio, in addition to interest earned on cash and cash equivalents.

Statement of Operations -------------------------------------------------------------------------- Three months ended March 31 --------------------------------------------------------------------------(unaudited) $thousands, except per share amounts 2008 2007 --------------------------------------------------------------------------Investment income Dividends, interest and other $ 690 $ 595

Expenses Operating 25 64 --------------------------------------------------------------------------Net income before taxes 665 531

Current taxes 226 72 Future tax expense (recovery) 85 (100) -------------------------------------------------------------------------- Net income $ 354 $ 559 ----------------------------------------------------------------------------------------------------------------------------------------------------Net loss per common share $ (0.03) $ (0.02) ---------------------------------------------------------------------------------------------------------------------------------------------------- Balance Sheet ---------------------------------------------------------------------------- (unaudited) March 31, December 31, $thousands, except per share amount 2008 2007 ---------------------------------------------------------------------------- Assets Cash and cash equivalents $ 16,166 $ 16,190 Securities 30,073 30,460 Interest receivable and other 203 117 ---------------------------------------------------------------------------- $ 46,442 $ 46,767 ----------------------------------------------------------------------------Liabilities Accounts payable and provisions $ 224 $ 532 Shareholders' equity(1) 46,218 46,235 ---------------------------------------------------------------------------- $ 46,442 $ 46,767 ----------------------------------------------------------------------------Attributable to each Class A Preferred Share, Series E(1) $ 27.54 $ 27.55 -------------------------------------------------------------------------------------------------------------------------------------------------------- (1) Shareholders' Equity ---------------------------------------------------------------------------- March 31, Per Preferred $thousands, except per share amounts 2008 Share ----------------------------------------------------------------------------Shareholders' equity $ 46,218 $ 27.54 ---------------------------------------------------------------------------- Less amounts attributed to preferred shares Redemption value 41,887 24.96 Unaccrued dividends in arrears 48,361 28.81 ---------------------------------------------------------------------------- 90,248 53.77 ----------------------------------------------------------------------------Common share deficit $ (44,030) $ (26.23) --------------------------------------------------------------------------------------------------------------------------------------------------------As a result of cumulative dividends in arrears, the tangible net book value of the company currently accrues entirely to the preferred shares. Based on 1,678,465 preferred shares currently issued and outstanding.

This news release contains forward-looking statements concerning the Company's business and operations. The Company cautions that, by their nature, forward-looking statements involve risk and uncertainty and the Company's actual results could differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Information Form for a description of the major risk factors.

Contacts: West Street Capital Corporation Brian D. Lawson President (416) 359-8625

2008-05-30 18:02:51 0374076 MARKETWIRE