Canadian General Investments Reports 2004 Second Quarter Results.

TORONTO -- Canadian General Investments, Limited ("CGI") (TSX:CGI) (TSX:CGI.PR.A) (TSX:CGI.PR.B) (TSX:CGI.WT) (LSE:CGI) (LSE:CGIW) maintained its outperformance of the benchmark S&P/TSX Composite Total Return Index (S&P/TSX) for the half year ended June 30, 2004, despite negative performance during the second quarter of the period. CGI's total returns, expressed as diluted net asset value per share (NAV) with dividends reinvested, for the six and three month periods ended June 30, 2004 were 5.4% and -2.7%, respectively, compared with the 4.8% and 0.0% returns experienced by the benchmark index. CGI's NAV at June 30 was $17.91, down from $18.47 at March 31, 2004 and up from $17.10 at year-end 2003. For the twelve month period to June 30, CGI posted a total return of 37.7% versus 24.5% for the S&P/TSX.

Portfolio assets at June 30, 2004 were $546,539,000, up from $523,754,000 at year-end. The largest sector weightings in CGI's portfolio at the end of June 2004, as at the end of the first quarter, were Financials (23.9%), Energy (19.4%) and Materials (16.0%). These sectors also led the weightings in the S&P/TSX Composite Index at 32.8%, 17.0% and 16.0%, respectively.

There was a net gain on investments of $20,677,000 for the first six months of 2004, compared with a net gain on investments of $30,103,000 in the first half of 2003. Strong gains from a broad range of stocks across the portfolio continue to be a big contributor to CGI's strong results. Net investment income was $3,476,000 year-to-date, compared to $384,000 recorded in 2003. The increase in net investment income was largely due to the receipt of special dividends from BPO Properties Ltd. and Brookfield Homes Corporation in 2004.

CGI purchased 90,600 of its warrants for cancellation during the first half of 2004 at an aggregate cost of $716,000. On June 30, 2004, 11,478 warrants were exercised for common shares at a price of $5.83 per share. CGI's warrants continue to be exercisable on June 30 of the years 2005 to 2007.

During each of the first two quarters of both 2004 and 2003, CGI paid regular income dividends of $0.06 per share to its common shareholders. CGI's common share market price closed the quarter at $13.13, up 3.4% from the end of 2003.

FINANCIAL HIGHLIGHTS

(in thousands of dollars, except per share amounts)

                                Three Months Ended   Six Months Ended
                                ------------------   ----------------

                                June 30,  June 30,  June 30, June 30,
                                    2004      2003      2004     2003
                                -------------------------------------

Net investment income                422       155     3,476      384
Net realized gain on investments  10,359     6,913    17,366      619
Change in unrealized appreciation
 of investments                  (23,337)   31,766     3,311   29,484
                                 --------   ------     -----   ------
Increase (decrease) in net assets
 resulting from operations       (12,556)   38,834    24,153   30,487
Increase (decrease) in net assets
 resulting from operations per
 common share                      (0.61)     1.90      1.18     1.49

                                                   As at
                                                   -----
                                    June 30, December 31,    June 30,
                                        2004         2003        2003
                                -------------------------------------

Net assets                           409,589      389,324     302,215
Net asset value per share - basic      19.98        19.00       14.75
Net asset value per share - diluted    17.91        17.10       13.47

In the United Kingdom, copies of the Corporation's quarterly report will be made available at the U.K. Transfer Agent, CIBC Mellon Trust Company, 34 Beckenham Road, Beckenham, Kent, BR3 4TU. Phone [phone].