WINNIPEG, MANITOBA--(Marketwire - Dec. 9, 2011) - Gendis Inc. (TSX:GDS) today announced its financial results for the 3^rd quarter ended October 31, 2011 of the fiscal year ending January 31, 2012.

Gendis Inc. has applied International Financial Reporting Standards for the quarters ended October 31, 2011 and 2010, has retrospectively applied those standards to all prior year periods, and will apply those standards for its fiscal year ending January 31, 2012.

Applying those standards has resulted in an increase in volatility to reported earnings, primarily fair value changes to the Company's investments in equity securities and real estate. The Company reported net earnings of $3.0-million ($0.21 per share) in the current quarter compared to earnings of $9.5-million ($0.68 per share) in the prior year quarter.

Condensed summarized information is as follows:

		quarter ended						year-to-date
in millions of Canadian dollars except per share		Oct 31 2011			Oct 31 2010			Oct 31 2011			Oct 31 2010
Lease rental revenue			0.9			0.8			3.0			2.6
Investment income			0.5			0.5			1.5			1.5
Fair value change:
	Veresen		0.9			3.7			2.8			4.3
	OSUM		0.5			5.8			(8.5	)		6.9
	Other investments		(0.1	)		-			(0.1	)		(0.1	)
	Real estate		1.6			0.9			1.8			1.0
Expenses			(0.9	)		(0.8	)		(2.9	)		(2.4	)
Settlement of legal claims			-			-			-			(2.8	)
Deferred tax recovery (expense)			(0.4	)		(1.4	)		1.7			(1.6	)
Net earnings (loss)			3.0			9.5			(0.7	)		9.4
Earnings (loss) per share		$	0.21		$	0.68		$	(0.05	)	$	0.68
Fair value of investments:
	Veresen								28.8			25.2
	OSUM								19.4			27.7
	Other investments								0.1			0.2
	Real estate								26.9			25.6
Other assets									0.7			0.6
Debt & payables									12.7			14.9
Deferred tax payable									2.0			3.4
Shareholders equity									61.2			61.0

			quarter ended				year-to-date
in millions of Canadian dollars except per share			Oct 31 2011		Oct 31 2010		Oct 31 2011		Oct 31 2010
Cash flow from:
	Operations
		Cash receipts	1.9		1.4		4.7		4.1
		Cash disbursements	(1.1	)	(0.8	)	(3.4	)	(2.1	)
		Settlement of legal claims	-		(1.5	)	(1.3	)	(1.5	)
	Investing
		Proceeds on sales of investments	-		0.3		-		0.4
		Purchase of investments	-		(1.0	)	-		(1.1	)
	Financing
		debt advance (reduction)	(0.6	)	1.6		0.4		0.2
		dividend	(0.3	)	-		(0.3	)	-

Subsequent to the quarter ended October 31, 2011, the Company reached a settlement with the Canada Revenue Agency of its tax case involving the sale of the Company's shares in Sony of Canada Ltd. in 1995. The Company will receive approximately $11.2-million later this year or in early 2012. The settlement represents a refund of 25% of the tax and arrears interest paid in 2001 on re-assessment, plus interest from 2001 to the refund date.

GENDIS INC.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF FINANCIAL POSITION

(thousands of Canadian dollars)	note	Oct 31 2011	Oct 31 2010	Jan 31 2011	Feb 01 2010
ASSETS
Cash		86	64	39	261
Receivables		574	485	454	305
Equity investments	2	48,280	53,082	54,150	41,366
Investment property		26,880	25,590	25,020	24,550
Furnishings and equipment		49	66	59	43
Total assets		75,869	79,287	79,722	66,525
LIABILITIES
Credit facilities	3	11,395	11,595	10,995	11,398
Payables		400	2,479	1,791	790
Provisions		-	-	-	89
Current income tax payable		-	-	69	-
Post employment benefit obligation		855	842	890	872
Deferred income tax payable		1,980	3,367	3,719	1,811
		14,630	18,283	17,464	14,960
SHAREHOLDERS' EQUITY		61,239	61,004	62,258	51,565
Total liabilities and shareholders' equity		75,869	79,287	79,722	66,525

GENDIS INC.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIODS ENDED OCTOBER 31

			quarter						year-to-date
(thousands of Canadian dollars except for share data)			2011			2010			2011			2010
Revenue
	Investment property
		Lease rentals		912			792			2,990			2,625
		Fair value change		1,602			890			1,827			985
				2,514			1,682			4,817			3,610
	Equity investments
		Dividends & distributions		507			505			1,527			1,485
		Fair value change		1,233			9,484			(5,869	)		11,094
				1,740			9,989			(4,342	)		12,579
Total revenue				4,254			11,671			475			16,189
Expenses
	Property			396			321			1,456			1,075
	Administration			348			372			1,140			1,132
	Provision for settlement of legal claims			-			-			-			2,750
	Finance expense			104			93			289			237
				848			786			2,885			5,194
Earnings (loss) before income tax				3,406			10,885			(2,410	)		10,995
Deferred income tax (expense) recovery				(391	)		(1,417	)		1,739			(1,556	)
Net earnings (loss) from operations and comprehensive earnings				3,015			9,468			(671	)		9,439
Net earnings (loss) from operations per share			$	0.21		$	0.68		$	(0.05	)	$	0.68

GENDIS INC.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF SHAREHOLDERS' EQUITY

	Share Capital				Retained Earnings		Total
(thousands - shares & Canadian dollars as applicable)	#		$		$		$
Balance - January 31, 2010	13,937		14,650		36,915		51,565
Comprehensive income for the period					(29	)	(29	)
Balance - July 31, 2010	13,937		14,650		36,886		51,536
Comprehensive income for the period					9,468		9,468
Balance - October 31, 2010	13,937		14,650		46,354		61,004
Comprehensive income for the remainder of the year					1,328		1,328
Refundable dividend tax					(74	)	(74	)
Balance - January 31, 2011	13,937		14,650		47,608		62,258
Comprehensive loss for the period					(3,686	)	(3,686	)
Balance - July 31, 2011	13,937		14,650		43,922		58,572
Comprehensive income for the period					3,015		3,015
Dividend					(348	)	(348	)
Balance - October 31, 2011	13,937		14,650		46,589		61,239

GENDIS INC.

CONDENSED CONSOLIDATED INTERIM STATEMENT OF CASH FLOWS

FOR THE PERIODS ENDED OCTOBER 31

			quarter				year-to-date
(thousands of Canadian dollars)			2011		2010		2011		2010
Changes in cash position
	By operations
		Cash receipts	1,889		1,403		4,715		4,063
		Cash disbursements	(1,042	)	(687	)	(3,067	)	(2,008	)
		Payment on settlement of legal claims	-		(1,500	)	(1,250	)	(1,500	)
		Income taxes paid	-		-		(74	)	-
		Finance expense paid	(102	)	(94	)	(290	)	(240	)
			745		(878	)	34		315
	By investing activities
		Proceeds from sale of equity investments	-		290		-		345
		Purchase of equity investments	-		(967	)	-		(967	)
		Expenditures on investment property	(8	)	(1	)	(33	)	(56	)
		Proceeds from sale of furnishings and equipment	3		-		3		-
		Expenditures on furnishings and equipment	(9	)	(13	)	(9	)	(31	)
			(14	)	(691	)	(39	)	(709	)
	By financing activities
		Net advance (repayment) of credit facilities	(587	)	1,598		400		197
		Dividend paid	(348	)	-		(348	)	-
			(935	)	1,598		52		197
Increase (decrease) in cash			(204	)	29		47		(197	)
Cash - beginning of period			290		35		39		261
Cash - end of period			86		64		86		64

Gendis Inc.

Notes to the unaudited Condensed Consolidated Interim Financial Statements

October 31, 2011

(All tabular amounts in thousands of Canadian dollars unless otherwise stated)

1. Significant Accounting Policies and Basis of Presentation

These unaudited condensed interim financial statements are prepared in accordance with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board using the accounting standards expected to be effective at January 31, 2012. Accounting policies will only be finalized when the first annual financial statements are prepared under IFRS for the year ending January 31, 2012 and consequently, these condensed interim financial statements may be subject to change. These condensed interim financial statements do not contain all the disclosures that would be required under generally accepted accounting principles for a comprehensive set of financial statements.

These condensed interim financial statements are presented in Canadian dollars, which is the Company's functional and presentation currency. The condensed consolidated interim financial statements for the quarter ended October 31, 2011 have been reviewed and approved by the Company's Audit Committee on December 9, 2011. The condensed consolidated interim financial statements for the quarter ended October 31, 2011 have not been audited or reviewed by the Company's independent Auditors.

2. Investments

	Oct 31	Jan 31
	2011	2011
Veresen	28,800	25,980
OSUM	19,350	27,869
Other equity investments	130	301
	48,280	54,150

3. Credit facilities

	Borrowing Balance		Remaining borrowing availability		Carrying value of collateral
	Oct 31	Jan 31	Oct 31	Jan 31	Oct 31	Jan 31
	2011	2011	2011	2011	2011	2011
Banker's acceptances	10,995	10,995
Bank demand loan	400	-
	11,395	10,995	600	1,000	26,667	24,056
Broker's margin account	-	-	1,099	1,113	2,263	2,225
	11,395	10,995	1,699	2,113	28,930	26,281

4. Operating segments

The segment information provided to the CEO for the reportable segments is as follows:

	Quarter ended Oct 31	Realty		Corporate		Inter-segment		Total
External revenue	2011	912		507		-		1,419
	2010	792		505		-		1,297
Fair values changes	2011	1,602		1,233		-		2,835
	2010	890		9,484		-		10,374
Intersegment revenue	2011	15		144		(159	)	-
	2010	15		150		(165	)	-
Operating expenses	2011	426		363		(45	)	744
	2010	350		388		(45	)	693
Finance expense	2011	114		104		(114	)	104
	2010	120		93		(120	)	93
Income tax expense	2011	76		315		-		391
	2010	128		1,289		-		1,417
Net earnings from operations & Comprehensive income	2011	1,913		1,102		-		3,015
	2010	1,099		8,369		-		9,468
	Year-to-date ended Oct 31	Realty		Corporate		Inter-segment		Total
External revenue	2011	2,990		1,527		-		4,517
	2010	2,625		1,485		-		4,110
Fair values changes	2011	1,827		(5,869	)	-		(4,042	)
	2010	985		11,094		-		12,079
Intersegment revenue	2011	46		430		(476	)	-
	2010	46		420		(466	)	-
Operating expenses	2011	1,546		1,186		(136	)	2,596
	2010	1,165		1,178		(136	)	2,207
Finance expense	2011	340		289		(340	)	289
	2010	330		237		(330	)	237
Provision for lawsuit settlement	2011	-		-		-		-
	2010	-		2,750		-		2,750
Income tax (expense) recovery	2011	(343	)	2,082		-		1,739
	2010	(308	)	(1,248	)	-		(1,556	)
Net earnings (loss) from operations & Comprehensive income (loss)	2011	2,634		(3,305	)	-		(671	)
	2010	1,853		7,586		-		9,439
Assets	2011	27,283		61,378		(12,792	)	75,869
	2010	26,070		67,543		(14,326	)	79,287
Liabilities	2011	15,880		12,577		(13,827	)	14,630
	2010	17,543		18,855		(18,115	)	18,283

5. Subsequent event

Subsequent to the quarter ended October 31, 2011, the Company reached a settlement with the Canada Revenue Agency of its tax case involving the sale of the Company's shares in Sony of Canada Ltd in 1995. The Company expects to receive approximately $11.2-million later this year or in early 2012. The settlement represents a refund of 25% of the tax and arrears interest paid in 2001 on re-assessment, plus interest from 2001 to the refund date. The settlement has not been recorded as at October 31, 2011. The settlement will be recorded when a re-assessment has been received.

FOR FURTHER INFORMATION PLEASE CONTACT:

James E. Cohen
Gendis Inc.
President & Chief Executive Officer
(204) 474-5200
(204) 474-5201 (FAX)
finance@gendis.ca
www.gendis.ca