As W.P. Stewart continues it search for a new CEO the company has launched a series of initiatives to enhance shareholder value over the longer term.

At a recent meeting, directors agreed to invest $30 million of the company?s capital as seed financing for the creation of new pooled investment products which were previously announced on 27 July 2006.

These will include two new pooled funds which target investors with large asset bases utilising both relative and absolute performance fee structures and will also include the introduction during the fourth quarter of 2006 of an EAFE fund (World ex-US) to the company?s worldwide client base.

These investments reflect the Board?s strong confidence in the W.P. Stewart investment style and a commitment to capitalise on new opportunities identified by the company.

On July 27 the company reported net income of $9.6 million for the second quarter 2006, compared with net income in the second quarter of the prior year of $12.3 million.

Assets under management (AUM) for the quarter ended 30 June 2006 declined approximately $900 million to approximately $8.4 billion, compared with AUM of approximately $8.8 billion reported at 30 June 2005.

Also revenues were $38.5 million for the quarter ended 30 June 2006, compared to $33.9 million for the same quarter 2005. The Board announced that 199,226 shares had been purchased, at an aggregate cost of approximately $2.1 million, in open market transactions in recent weeks and that these shares have been cancelled.

This action occurred under the Board?s previously authorised $30 million share repurchase programme.

?With these actions and others that must be taken to address the challenges facing our company, the Board of Directors has underscored our commitment to enhance shareholder value over a sustained period of time,? William Stewart, Chairman of the Board, said.

Mr. Stewart said: ?While we currently face a challenging environment in which our investment style has been out of favour, the Board remains confident that the company will generate superior returns over the long-term for our clients and shareholders worldwide.?

?The selection of a strong, long term leader as our new Chief Executive Officer is obviously imperative. Several candidates have been identified and I am hopeful that we will be in a position to make this important decision within the next few months.?

Also the Board has mandated a thorough review of the company?s operating expenses while maintaining its commitment to the investment management process and to enhancing the marketing and client service initiatives.

?Management is confident that significant savings can be realised. While a minor impact may be evident in the fourth quarter of 2006, the majority of these savings will be realised in calendar 2007.?

The Board of Directors also reviewed the company?s dividend policy and confirmed its long standing commitment of authorising the payment of dividends in amounts that represent substantially all cash earnings.