An anonymous director reports

PARTNERS VALUE INVESTMENTS L.P. ANNOUNCES CHANGES TO INTERNAL GROUP CAPITAL STRUCTURE

Partners Value Investments LP, Partners Value Investments Inc. and Partners Value Split Corp. together completed a share capital reorganization involving a change in how the partnership owns its interest in PVII and how PVII owns its interest in PV Split.

Pursuant to the reorganization, among other things, PVII amended its articles to: (a) redesignate the voting common shares held by the partnership as Class A restricted voting shares, which have substantially the same terms as the common shares but are entitled to elect 50 per cent of the directors of PVII; and (b) create Class B restricted voting shares, which are not entitled to dividends, are redeemable for a nominal amount and are entitled to elect 50 per cent of the directors of PVII. A new trust, Partners Value Holding Trust, subscribed for Class B shares and is the sole owner of PVII shares of that class. As a result, the partnership no longer controls PVII, but has retained 100 per cent of its economic interest in PVII.

A similar change has been made to the articles of PV Split. As a result of the transaction, PVII now owns 100 per cent of the Class A restricted shares of PV Split, which have substantially the same terms as the voting shares of PV Split but are entitled to elect 50 per cent of the directors of PV Split and a new trust, Partners Value Split Holding Trust, holds 100 per cent of the new Class B restricted voting shares of PV Split, which are not entitled to dividends, are redeemable for a nominal amount and are entitled to elect 50 per cent of the directors of PV Split. As a result, PVII no longer controls PV Split, but has retained 100 per cent of its economic interest in PV Split.

After these changes, which have no impact on the publicly traded units of the partnership, it is expected that PVII and PV Split will both continue to be considered mutual fund corporations for tax purposes under current law and following the implementation of proposed amendments to the Income Tax Act (Canada) relating to mutual fund corporations.

We seek Safe Harbor.