Clarke Inc. withdraws offer to purchase outstanding shares of Shermag Inc.

TSX: CKI; CKI.DB; CKI.DB.A

HALIFAX, April 21 /CNW/ - Clarke Inc. ("Clarke") announces that it has withdrawn its proposal to privatize Shermag Inc. ("Shermag"). The proposal was delivered to the independent members of the Shermag Board on February 7, 2008. The withdrawal follows the completion of an independent valuation that attributed a value to Shermag that exceeded the value reflected in Clarke's proposal, and the subsequent decision of the independent members of Shermag's Board not to recommend an offer by Clarke to Shermag shareholders. Clarke intends to reassess the opportunity to privatize Shermag at a later date.

In its February 7, 2008 proposal, Clarke expressed an interest in privatizing Shermag at a price below the price at which Shermag's shares were then trading. "Clarke seeks to make investments that can deliver long-term value to its shareholders," said Rob Normandeau, Clarke COO. "Following the completion of the independent valuation of Shermag, Clarke management determined that proceeding with an offer for Shermag was not presently in the best interests of Clarke shareholders."

Clarke currently owns approximately 20% of Shermag's outstanding shares.

About Clarke

Halifax-based Clarke Inc., led by an entrepreneurial team of investment professionals, is an activist and catalyst investment company that creates shareholder value by identifying businesses with the potential for improved performance, and working actively to uncover the value.

Clarke's securities trade on the Toronto Stock Exchange (CKI, CKI.DB, CKI.DB.A); for more information about Clarke Inc., please visit our website at www.clarkeinc.com.

Contacts

Melinda Lee
Vice President Investments
Clarke Inc.
(902) 442-3420