Joint Announcement of the City of Toronto and MFP Financial Services Ltd.

The City of Toronto and MFP Financial Services Ltd. announced today, after an exhaustive review of all transactions between them, that they have resolved all outstanding issues between them on a basis both believe to be fair and reasonable. Their agreement involves, in part, the settling of amounts that each owes to the other. It also involves the restructuring of certain equipment leases, in respect of which MFP has agreed to buy down future lease payments and the City has agreed to a corresponding benefit to MFP. In the result, MFP will provide to the City a credit in the amount of $3,220,000 against amounts owing to MFP and the City will immediately pay the balance to MFP.