Clairvest Group Inc. Results for the First Quarter.

TORONTO--(BUSINESS WIRE)--Aug. 16, 1996--CLAIRVEST GROUP INC. (TSE:CVG) Clairvest Group Inc. announced its results from operations for the three month period ended June 30, 1996. Net income was $1.0 million or $0.06 fully diluted per share on revenue of $18.5 million (1995 - $16.7 million). The net income for the comparable period ended June 30, 1995 was $2.1 million or $0.15 per share fully diluted.

Clairvest's operation results include the results of its merchant banking operations and 83.4 percent owned National Rubber Inc. ("NRI"). NRI is the North American leader in recycling tire-derived rubber into value added rubber materials.

The condensed statements of operations of NRI for the three months ended June 30, 1996 and 1995 are presented below: -0-

                                        Three Months Ended
                                              $(000's)
                           -----------------------------------
                           June 30, 1996     June 30, 1995
                                    percent            percent
                           ----------------- -----------------
Sales                     $16,409     100    $14,491     100
Cost of Sales              12,451      76     10,512      73
                           ------   ------    ------  ------
Gross Profit                3,958      24      3,979      27
Selling, general and
 administrative expenses    2,313      14      1,601      11
                           ------   ------    ------  ------
EBITDA                      1,645      10      2,378      16

Depreciation and
 amortization               1,336       8        944       7
                           ------   ------    ------  ------
EBIT                          309       2      1,434      10

Interest                      431       3        370       3

Income Taxes                  (44)      0          0       0
                            ------  ------    ------  ------
Net income                   $(78)     -1     $1,064       7
                            ------  ------    ------  ------
                            ------  ------    ------  ------

During the quarter NRI separated its operating units into two divisions being the parts manufacturing division and the establishment of its new materials division. The materials division known as National Rubber Materials Inc. is comprised of the Toronto and newly opened Flat Rock, Michigan Tire Recycling Units ("TRU's") and the assets acquired from Baker Rubber, Inc. in February of this year.

For the quarter ended June 30, 1996 sales for NRI have increased on a combined basis by $1.9 million, which reflects the new incremental sales generated by the materials division of $2.0 million and a decrease in sales of $0.1 million in the parts business. The decrease in sales in the parts division can be directly attributed to a decrease in sales of industrial products.

The company has taken aggressive action to remedy the situation by adding new personnel and developing a detailed marketing plan to increase sales over the prior years.

Cost of sales have increased due to start-up costs incurred at the new TRU in Michigan and the inclusion of the Baker Rubber operations. The start-up costs for the Michigan TRU were anticipated and will continue to be incurred until the plant is operating at its optimum capacity which will not occur until 1997. The plant in Chambersburg, purchased from Baker Rubber, Inc., required both maintenance and production refinements in order to increase capacity and reduce the cost of goods produced. This work has been completed, capacity has been substantially increased and the costs have been reduced.

Symar-D, the tire derived product produced by NRI, is continually being improved. The use of this improved Symar-D will allow NRI to substitute more of this low cost product for higher priced traditional raw materials, the positive effects of which will be reflected in the near future. The company has now seen positive reaction to its efforts to sell Symar-D to third parties and is very encouraged about these activities.

We continue to be encouraged by developments in both Western Co-Axial and Sparkling Springs as they continue to execute their business strategies.

Clairvest Group Inc. is a Toronto-based merchant bank that invests in and assists in the management of carefully selected, emerging companies. It contributes management expertise as well as capital resources to stimulate the growth and development of its partners, in order to build long-term value.

The Group's Board of Directors includes well-known entrepreneurs who have founded successful businesses and committed their own capital to the Company.

CONTACT: Clairvest Group Inc.

James H. McKelvie. C.A., 416/925-9270