PRESS RELEASE: April 1, 1997

Notwithstanding the announcement today of the sale of Terminal 3 at Lester B. Pearson International Airport by T3 Limited Partnership to the Greater Toronto Airport Authority, the litigation by T1T2 Limited Partnership in respect of the cancellation of the contracts continues in court today.

The cross-examination of Dr. Quirin, the Crown's discount rate expert, should finish today. It is expected that on Wednesday the Crown will begin direct examination of its second expert on valuation, Mr. Martin Booth.

The developer consortium has now achieved two of its three objectives. First, the consortium has cleared its name publicly by obtaining judgment on liability in the litigation and by seeking and participating in the Special Senate Inquiry into the awarding of the Pearson Airport Contracts and their cancellation. The Senate majority report, based on the evidence of over 60 witnesses testifying under oath, determined that there was no patronage or political pressure in respect of the Pearson Airport Contracts and that the deal was an excellent deal for the Canadian taxpayer, the travelling public and the Government of Canada. There were no improprieties.

Secondly, both the Claridge Group and the Paxport Group invested in Terminal 3 because of its strategic importance in the redevelopment of Terminals 1 and 2. With the cancellation of the Terminal 1 and 2 redevelopment, Terminal 3 was no longer a strategic investment and the parties wished to sell Terminal 3, either to the Greater Toronto Airport Authority (GTAA) or to an independent third-party operator. The sale to the GTAA accomplishes this objective. The sale was achieved at a negotiated price. That price was less than the appraised value determined by Terminal 3 Limited Partnership's advisors, Drivers Jonas of England. Drivers Jonas are the preeminent airport valuators in the world. Drivers Jonas were retained in June of 1995 and conducted an extensive review of Terminal 3 resulting in a report to the Partnership almost eight months later.

The third objective, completion of the litigation with respect to the assessment of damages commenced on February 12, 1996, is still outstanding.


Court Address: Ontario Court, General Division, 7th Floor, 145 King Street West, Toronto, Ontario Time: 9:00 a.m.

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