Clairvest To Sell A Portion Of Gateway Casinos Income Fund.

TORONTO -- Clairvest Group Inc. (TSX:CVG) announced today it has entered into an agreement to sell 1,865,226 units of Gateway Casinos Income Fund (the "Fund") for net proceeds of $30.7 million. Clairvest will continue to hold 1,500,649 units of the Fund, representing approximately 5.7% of the outstanding units.

Clairvest and certain other unitholders have, subject to regulatory approval, agreed to sell a total of 6,567,150 Fund units in a bought deal agreement with a syndicate of underwriters led by BMO Nesbitt Burns Inc., at a price of $17.30 per unit.

Currently, the selling unitholders hold approximately 45% of the outstanding units and upon completion of the transaction, the selling unitholders will continue to hold approximately 20% of the outstanding units of the Fund. The Fund will not receive any proceeds from the sale of the units.

This transaction has received the approval of both the British Columbia Lottery Corporation ("BCLC") and the Alberta Gaming and Liquor Commission. As a condition of obtaining the approval of the BCLC, the selling unitholders have agreed that they will take all necessary steps in connection with any additional issue of units of the Fund to ensure that their collective ownership of the Fund is maintained at 20% of the issued and outstanding units. The Fund, in turn, agreed with the BCLC that it will not proceed with any new issue unless the selling unitholders subscribe for and take up the number of units necessary to maintain their 20% collective ownership.

As a result of the sale of these units, Clairvest will be required to repay $18.7 million of its $33.7 million loan from a subsidiary of Gateway Casinos Inc.

Closing of the transaction is expected on or about September 17, 2004.

About Clairvest

Clairvest is a Canadian merchant bank that invests its own capital, and that of third parties through Clairvest Equity Partners Limited Partnership (CEP), in companies that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.

This press release contains forward-looking statements with respect to Clairvest Group Inc., its subsidiaries and their investments. These statements are based on current expectations and are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Clairvest, its subsidiaries and their investments to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

Clairvest Group Inc. (TSX:CVG)