The following is information for Canadian shareholders of Pacific & Western Credit Corp. (the Corporation) who received a dividend from the Corporation in March 2007. This dividend was a dividend in kind, and consisted of shares of Discovery Air Inc. (DA) based on their shareholdings of PWC. The dividend was a taxable dividend equal to $1.80 per DA share received. The dividend was designated as an "eligible dividend" and a T5 Return of Investment Income will be issued by the Corporation’s transfer agent Computershare. The T5 will include an amount for a dividend gross up and a tax credit which is available to Canadian taxpayers. As the dividend did not represent a "spin off" of DA, there is no tax opinion related to this transaction.

Taxpayers should consult with their professional advisors for further information on the taxation of dividends.