Gluskin Sheff + Associates Inc. today announced its results for the three months ended September 30, 2006.

The company changed its fiscal year end from May 31 to June 30 effective June 30, 2006. As a result, the quarter ended Sept. 30, 2006 does not include a performance fee year end. The comparable quarter ended Aug.31, 2005 does include the performance year ended June 30, 2005 and related performance fees.

The company’s revenues are derived from base management fees, calculated as a percentage of assets under management (AUM), performance Fees, which are primarily earned at performance fee year ends when we exceed pre-specified rates of return, and investment and other income.

AUM increased to approximately $3.9 billion as at Sept. 30, 2006 from $2.7 billion as at Aug.31, 2005. Approximately $829 million or 68% of the increase in AUM resulted from net additions from new and existing clients, and $391 million or 32% from investment performance.

For the three months ended Sept. 30, 2006, base management fees increased 64% to $13.6 million compared to $8.3 million for the three months ended August 31, 2005. This increase results primarily from the significant increase in AUM achieved over the prior thirteen months.

Performance fees for the first quarter of fiscal 2007 were nominal and relate to fees from closed or transferred accounts, as the period did not contain a performance year end. The comparable three months ended August 31, 2005 did include performance fees of approximately $61 million relating to the performance year ended June 30, 2005.

Base earnings before earnings before interest, taxes, depreciation and amortization for the three months ended Sept. 30, 2006 was $7.9 million, compared to $4.5 million for the comparable three month period ended Aug. 31, 2005. The increase is primarily due to the increase in base management fees referred to above.

“We were pleased with the company’s growth and performance in our first full quarter as a publicly traded entity, the result of our ongoing commitment to delivering the highest levels of personalized client service and strong, risk-adjusted investment returns,” commented Gerald Sheff, Chairman and Chief Executive Officer.

The company also announced today its first regular quarterly dividend of 9.25¢ per Subordinate Voting Share and Multiple Voting Share payable on Dec. 7, 2006 to shareholders of record on Nov. 20, 2006.