Mr. John Robertson reports

INTEGRATED ASSET MANAGEMENT CORP. ANNOUNCES RESULTS FOR THE SECOND QUARTER OF FISCAL 2017

Integrated Asset Management Corp. has released unaudited financial results for the quarter ended March 31, 2017.

                                                 HIGHLIGHTS                                                                                                            
                                    (in thousands, except per-share amounts) 

                                               Three months ended March 31,        Six months ended March 31,   
                                                   2017              2016             2017              2016
 
Invested capital                           $  1,780,000      $  1,542,000     $  1,780,000      $  1,542,000 
Committed capital to be invested                734,000           777,000          734,000           777,000 
Total assets under management (AUM)           2,514,000         2,319,000        2,514,000         2,319,000 
Revenues before the undernoted                    4,059            $2,604            6,825             5,100 
Investment (loss)                                   (62)              (84)            (538)              (21)
Total revenues                                    3,997             2,520            6,287             5,079 
EBITDA                                              891              (171)             972              (799)
Net income (loss) from 
continuing operations                               498               (57)             476              (648)
Gain from sale of discontinued 
operations, net of income taxes                     699                 -              699               401 
Net income (loss) from discontinued
operations, net of income taxes                     (61)              (91)             (69)              264 
Net income (loss) attributed to 
common shareholders of the corporation            1,146              (155)           1,120                (3)
Earnings per share                                                                                        
Continuing operations                              0.02             (0.00)            0.02             (0.02)
Discontinued operations                            0.02             (0.01)            0.02              0.02 
Total                                              0.04             (0.01)            0.04             (0.00) 

AUM was approximately $2.5-billion at March 31, 2017, versus $2.3-billion for the quarter ended March 31, 2016.

Net earnings for the quarter ended March 31, 2017, from continuing operations were $500,000 or two cents per share, versus net loss from continuing operations of zero per share in the quarter ended March 31, 2016. Management fees and other income were higher at $4-million, versus $2.6-million in the same quarter in 2016.

Earnings before interest, taxes, depreciation and amortization, and stock based-compensation (EBITDA) improved to $900,000 from negative $200,000 in the same quarter of the previous fiscal year. Investment losses of $100,000, which are not reflected in the calculation of EBITDA, contributed negatively to net income in the quarter.

Cash flow from operations for the six months ended March 31, 2017, was $900,000 this year, compared with negative $900,000 in the same six months of the previous fiscal year. The corporation reported consolidated expenses for the quarter of $3.1-million, up $400,000 from $2.7-million in the second quarter of fiscal 2016.

AUM remained at $2.5-billion as compared with Dec. 31, 2016. Of that, approximately $734-million is committed but not yet invested capital from real estate, private debt and infrastructure debt operations.

John Robertson, president and chief executive officer, said: "We first announced in 2014 our strategy of focusing on our two core businesses, private debt and real estate, and becoming a pure-play institutional manager. The closing of the sale on March 31, 2017, of our managed futures business completed the divestiture of non-core businesses. Private debt and real estate have been growing and are performing well.

"We earn our management fees on invested capital, not committed capital. The debt and real estate teams combined in the quarter to invest $151-million. This earned a total of $1.5-million in acquisition and commitment fees, as well as making a meaningful increase in recurring, long-term management fee revenue, compared to the same quarter of fiscal 2016, in which we earned $300,000 in acquisition and commitment fees. We are pleased with these results and gratified by the success of our strategy. Next quarter will reflect exclusively the results of our core operations. We believe IAM is well positioned to continue to build on the strength reflected in these results.

"During the second quarter, we made good progress in deploying committed but uninvested capital. We are generating steady growth in recurring, long-term management fees, which will continue for the balance of the year as additional investments are made. As a result, we expect to see further improvement in earnings as we experienced in the second quarter and more stable earnings as recurring, long-term management fees grow."

Shortly after quarter end, it was announced that Rick Zagrodny, president of the IAM Real Estate Group, will be retiring, effective Sept. 30, 2017, after 33 years of service. As planned, David Pappin, who joined a year ago as chief operating officer of the Real Estate Group, will succeed Mr. Zagrodny as president of the Real Estate Group. Mr. Robertson said, "We would like to acknowledge Rick's significant contributions over the years, thank him for his long and loyal service, and wish him a long and rewarding retirement."

Also during the quarter, Don Bangay, most recently vice-chair of the IAM Private Debt Group, and long-serving chief investment officer, retired in February of this year. Mr. Bangay was instrumental in the establishment of the highly successful Private Debt Funds. He will continue to chair the investment committee of the Private Debt Group.

Mr. Robertson said, "I have worked closely with Don for the last 16 years, and appreciate his major contribution to IAM and his advice and support for me over those years."

The corporation's normal course issuer bid (NCIB), pursuant to which it may purchase its common shares for cancellation, expires on May 23, 2017. The corporation intends to seek the approval of the Toronto Stock Exchange to renew the NCIB for another 12-month period. From Oct. 1, 2016, to March 31, 2017, the corporation purchased no shares under the NCIB.

For detailed financial statements for the quarter, including management's discussion and analysis, please refer to the corporation's website or the SEDAR website after May 8, 2017.