Praedium Group merges with CDP.

The Praedium Group, a leading opportunistic investor, has entered into an alliance with Cadim Inc., a real estate subsidiary of Canada's largest fund manager, CDP (Caisse de depot et placement du Quebec), to expand Praedium's investment program. The Praedium Group invests in real estate assets, real estate securities, and distressed and high-yield mortgage loans throughout the United States and Canada. The announcement was made by Praedium's President Russell L. Appel and Andre Collin, President and Chief Operating Officer of Cadim Inc.

Cadim, which is making an investment in Praedium itself, made a commitment of $100 million to be invested by Praedium - and expressed its intention to invest another $200 million over the two following years. In addition, an affiliate of Credit Suisse First Boston also made a $50 million commitment to be invested by Praedium.

"We are delighted to have Caisse de depot et placement du Quebec and Cadim as a new partner, enhancing our ability to provide superior returns for our investor clients over the long term," said Mr. Appel. "Cadim and its parent are among North America's most important financial concerns, and we are proud to have them supporting our business and investment plans."

CDP is a top tier fund manager, with C$120 billion in total assets, and C$22 billion invested in real estate -- much of it outside of Canada. CDP manages its North American activities from its principal place of business in Montreal. CDP manages the largest portfolio of Quebec and Canadian stocks, and is the principal holder of Quebec government bonds. It also has the largest real estate portfolio in Canada, with diversified holdings in the commercial, residential and office sectors that are managed primarily by companies of CDP.

"Our investment in Praedium is an important strategic operation that will play a major role in the development of our future business," noted Mr. Collin.