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Press release from Marketwire

Integrated Asset Management Corp. Announces Results for the Second Quarter of Fiscal 2012

Wednesday, May 09, 2012

Integrated Asset Management Corp. Announces Results for the Second Quarter of Fiscal 201209:29 EDT Wednesday, May 09, 2012TORONTO, ONTARIO--(Marketwire - May 9, 2012) - Integrated Asset Management Corp. ("IAM") (TSX:IAM) today announced unaudited financial results for the quarter ended March 31, 2012. HIGHLIGHTS3 Months Ended March 31, 2012 (thousands except per share amounts)3 Months Ended March 31, 2011 (thousands except per share amounts)6 Months Ended March 31, 2012 (thousands except per share amounts)6 Months Ended March 31, 2011 (thousands except per share amounts)Assets and Committed Capital Under Management ("AUM")$ 1,940,000$ 2,309,000$ 1,940,000$ 2,309,000Revenues before performance fees$4,227$4,056$8,410$8,576Performance fees$961$2$981$2,992Total revenues$5,188$4,058$9,391$11,568Net performance fees(1)$721$2$740$1,735EBITDA(1)$276$170$184$1,906Income (loss) before income taxes and non-controlling interest$211$ (175)$ 55$ 1,385Income taxes$(242)$(82)$(327)$(212)Non-controlling share of loss (income)(2)$(213)$(17)$(364)$2Net income (loss) and comprehensive income$(244)$(274)$(636)$1,175Earnings per share$(0.01)$(0.01)$(0.02)$0.04(1) Net Performance Fees and Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") are non-IFRSearnings measures used by IAM.(2) 2012 includes investment gain on units of the Corporation's funds owned by unrelated third parties and a portion of performance fees payable to a former non-controlling shareholder of Real Estate Asset Management.AUM decreased by approximately $366 million during the six months ended March 31, 2012 from $2,306 million as at September 30, 2011. The reasons for the decline are the end of a segregated fund agreement managed by Real Estate Asset Management and the distribution to investors of the principal repayments received on loans in Private Corporate Debt's funds.Revenues before performance fees were $4.2 million in the latest quarter, up $0.1 million from $4.1 million in the comparable quarter of fiscal 2011. There were no material changes in management fees from the prior year's quarter in any of the Corporation's operations.Performance fees of approximately $1.0 million were recognized in the latest quarter, most of which was recognized based on the performance of a segregated account in Real Estate Asset Management over the two year period which concluded February 29, 2012.EBITDA for the three months ended March 31, 2012 increased to $0.3 million from $0.2 million in the prior year's comparable quarter due to the net performance fees in the current quarter.Net loss and comprehensive income was $0.2 million or $0.01 per share in the current quarter versus net loss of $0.3 million or $0.01 per share in the prior year's comparable quarter.Income before income taxes and non-controlling share of income was $0.2 million in the latest quarter. Income taxes of $0.2 million recognizes income taxes on profitable subsidiaries but does not include any potential benefit of tax losses incurred in the current quarter by the Corporation's other subsidiaries.Victor Koloshuk, Chairman and Chief Executive Officer, said "we are disappointed with the decline in AUM and the level of profitability. Expenses were higher due to an increase in legal and marketing costs related to new product launches. We are well advanced in the marketing of three institutional funds which should increase AUM significantly". For detailed financial statements for the quarter, including Management's Discussion and Analysis, please refer to IAM's website at www.iamgroup.ca or SEDAR at www.sedar.com after May 14, 2012.IAM is one of Canada's leading alternative asset management company with approximately $1.9 billion in assets and committed capital under management in real estate, private corporate debt, private equity, managed futures, global bonds and retail alternative investments.FOR FURTHER INFORMATION PLEASE CONTACT: Stephen JohnsonIntegrated Asset Management Corp.CFO416 933 8278sjohnson@iamgroup.cawww.iamgroup.ca