Clarke announces real estate acquisition

Clarke Inc. and KingStreet Real Estate Growth LP No. 1 have has entered into an agreement in which each have agreed to acquire a 50% interest in eight warehousing facilities, consisting of land and buildings in Toronto.

The total purchase price of approximately $33.2 million, subject to adjustments, will be payable in cash on closing.

Clarke Inc.’s net equity investment in this transaction at closing is expected to be approximately $5 million. It is expected that the balance of Clarke Inc.’s 50% pro rata share of the total purchase price will be funded through non-recourse financing.

The closing of this transaction is scheduled for October 4, 2004 and is subject to the satisfaction of a number of conditions usual to this type of transaction.

Founded in 1921, Clarke Inc. is one of Canada’s largest providers of freight transportation services throughout North America. Through Clarke Transport and Clarke Road Transport, the Company offers highway service for both truckload and less-than-truckload (“LTL”) shippers; intermodal full load and LTL service throughout Canada and between Canada and the U.S.

Headquartered in Etobicoke, Ontario, Clarke has offices and distribution
facilities across North America.