WINNIPEG, MANITOBA--(Marketwire - June 8, 2012) - Gendis Inc. (TSX:GDS) today announced its financial results for the 1^st quarter ended April 30, 2012.

Revenue for the 1^st quarter was $1,513,000 compared to $1,638,000 for last year's 1^st quarter. Net earnings for the 1^st quarter were $227,000 ($0.02 per share) compared to a loss of $261,000 ($0.02 per share) for last year's 1^st quarter. The increase in earnings is primarily due to the reduction in fair value declines for investment properties quarter over quarter. Lease rental revenue and recoverable property expenses have declined marginally quarter over quarter. Investment income is even with the prior year quarter.

Condensed summarized information is as follows:
		Apr 30		Apr 30
in millions of Canadian dollars except per share		2012		2011
Lease rental revenue		1.0		1.1
Investment income		0.5		0.5
Fair value change:
	Veresen	-		1.2
	OSUM	-		(1.0	)
	Other investments	-		(0.1	)
	Real estate	(0.5	)	(0.9	)
Expenses		0.9		1.1
Income tax recoverable		0.1		-
Net earnings (loss)		0.2		(0.3	)
Earnings (loss) per share		$0.02		$(0.02	)
Fair value of investments:
	Veresen	30.2		27.2
	OSUM	25.6		26.8
	Other investments	2.7		0.3
	Real estate	27.0		24.1
Other assets		1.4		0.5
Debt & payables		7.3		13.2
Deferred tax payable		4.6		3.7
Shareholders equity		75.0		62.0

			Apr 30		Apr 30
in millions of Canadian dollars except per share			2013		2011
Cash flow from:
	Operations
		Cash receipts	1.8		1.8
		Cash disbursements	(0.8	)	1.2
	Investing
		Proceeds on sales of investments	0.2		-
		Purchase of investments	(2.8	)	-
	Financing
		Increase (decrease) in debt	1.9		(0.5	)
		Dividends	(0.3	)	-

GENDIS INC.
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
			Apr 30	Apr 30	Jan 31
(unaudited - thousands of Canadian dollars)		note	2012	2011	2012
ASSETS
Current assets
	Cash		51	64	142
	Income tax recoverable		706	-	703
	Receivables		560	364	761
Total current assets			1,317	428	1,606
Non current assets
	Equity investments	2	58,472	54,299	55,813
	Investment property	3	27,050	24,110	27,560
	Furnishings and equipment		48	54	52
Total non current assets			85,570	78,463	83,425
Total assets			86,887	78,891	85,031
LIABILITIES
	Current liabilities
	Credit facilities	4	5,500	10,495	3,600
	Payables		730	1,799	582
	Income tax payable		53	-	-
	Total current liabilities		6,283	12,294	4,182
Non current liabilities
	Post employment benefit obligation		956	885	961
	Deferred income tax payable	5	4,604	3,715	4,723
	Total non current liabilities		5,560	4,600	5,684
Total liabilities			11,843	16,894	9,866
SHAREHOLDERS' EQUITY			75,044	61,997	75,165
Total liabilities and shareholders' equity			86,887	78,891	85,031

GENDIS INC.
CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
FOR THE QUARTERS ENDED APRIL 30
(unaudited - thousands of Canadian dollars except for share data)		2012		2011
Revenue
	Lease rentals	1,002		1,128
	Dividends	511		510
	Total revenue	1,513		1,638
Expense
	Property	471		621
	Administration	363		404
	Finance	50		92
	Total expense	884		1,117
Fair value change
	Investment property	(510	)	(935	)
	Equity investments	39		149
	Total fair value change	(471	)	(786	)
Earnings (loss) before income tax		158		(265	)
Income tax (expense) recovery		69		(4	)
Net earnings (loss) from operations and comprehensive income (loss)		227		(261	)
Net earnings (loss) from operations per share		$0.02		$(0.02	)

GENDIS INC.
CONDENSED INTERIM STATEMENT OF SHAREHOLDERS' EQUITY
	Share		Retained		Total
	Capital		Earnings
(unaudited - thousands - shares & Canadian dollars as applicable)	#	$	$		$
Balance - January 31, 2011	13,937	14,650	47,608		62,258
Net loss from operations and comprehensive loss for the period			(261	)	(261	)
Balance - April 30, 2011	13,937	14,650	47,347		61,997
Net earnings from operations and comprehensive income for the remainder of the year			17,349		17,349
Dividends paid			(4,181	)	(4,181	)
Balance - January 31, 2012	13,937	14,650	60,515		75,165
Net earnings from operations and comprehensive income for the period			227		227
Dividend paid			(348	)	(348	)
Balance - April 30, 2012	13,937	14,650	60,394		75,044

GENDIS INC.
CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE QUARTERS ENDED APRIL 30
(unaudited - thousands of Canadian dollars)			2012		2011
Changes in cash position
	By operations
		Cash receipts	1,771		1,790
		Cash disbursements	(737	)	(1,070	)
		Income taxes paid	-		(74	)
		Finance expense paid	(52	)	(96	)
	Total by operations		982		550
	By investing activities
		Proceeds from sale of equity investments	118		-
		Acquisition of equity investments	(2,739	)	-
		Expenditures on investment property	-		(25	)
	Total by investing activities		(2,621	)	(25	)
	By financing activities
		Net advance (repayment) of credit facilities	1,896		(500	)
		Dividend paid	(348	)	-
	Total by financing activities		1,548		(500	)
Increase (decrease) in cash			(91	)	25
Cash - beginning of year			142		39
Cash - end of period			51		64

GENDIS INC.

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE QUARTERS ENDED APRIL 30, 2012 AND 2011

(unaudited - all tabular amounts in thousands of Canadian dollars unless otherwise stated)

1.0 General information

General information on Gendis Inc. is the same as disclosed in Note 1 to the complete audited annual financial report for the year ended January 31, 2012. The principal accounting policies applied in the preparation of these condensed interim financial statements are the same as set out in Note 2 to the complete audited annual financial report for the year ended January 31, 2012. These policies have been consistently applied to all periods presented.

2.0 Equity investments

		Apr 30	Apr 30	Jan 31
(in thousands)		2012	2011	2012
Level 1
	Veresen	30,160	27,160	30,120
	Other investments	717	315	98
Level 3
	OSUM	25,595	26,824	25,595
	Oak Point Energy	2,000	-	-
Total equity investments		58,472	54,299	55,813

3.0 Investment property

The Company's investment properties were valued at January 31, 2012 by independent professionally qualified appraisers. The Company's investment properties were valued at April 30, 2012 and April 2011 by the Company's in- house valuation model.

4.0 Credit facilities

	Borrowing			Remaining borrowing			Carrying value
	Balance			availability			of collateral
	Apr 30	Jan 31		Apr 30	Jan 31		Apr 30	Jan 31
	2012	2012		2012	2012		2012	2012
Banker's acceptances	5,500	3,000
Bank demand loan	-	600
Total for bank borrowing	5,500	3,600		6,500	8,400		27,926	27,890
Broker's margin account	-	-		1,180	1,115		2,951	2,328
Total credit facility	5,500	3,600		7,680	9,515		30,877	30,218

The credit facility provides for a borrowing capacity of 70% of the market value of marketable securities, namely Veresen, lodged as collateral. The credit facility expires on July 31, 2012.

5.0 Deferred income tax payable

	Apr 30		Apr 30		Jan 31
	2012		2011		2012
Non capital losses	(3,472	)	(4,160	)	(3,451	)
Net capital losses	(1,242	)	(664	)	(1,237	)
Investment property	2,857		2,406		2,978
Equity investments	6,729		6,707		6,716
Other items	(268	)	(574	)	(283	)
Total deferred income tax payable (recoverable)	4,604		3,715		4,723

6.0 Operating segments

The segment information provided to the CEO for the reportable segments is as follows:

		Quarter ended	Realty Corporate Intersegment
		Apr 30	Total Elimination
External revenue		2012	1,002		511		-		1,513
		2011	1,128		510		-		1,638
Intersegment revenue		2012	18		215		(233	)	-
		2011	15		141		(156	)	-
Property & administration expenses		2012	525		380		(71	)	834
		2011	650		420		(45	)	1,025
Finance expense		2012	162		50		(162	)	50
		2011	111		92		(111	)	92
Fair values changes		2012	(510	)	39		-		(471	)
		2011	(935	)	149		-		(786	)
Income tax (expense) recovery		2012	48		21		-		69
		2011	150		(146	)	-		4
Net earnings (loss) from operations		2012	(129	)	356		-		227
	& Comprehensive income (loss)	2011	(403	)	142		-		(261	)
Total assets		2012	27,447		77,880		(18,440	)	86,887
		2011	24,337		67,762		(13,208	)	78,891
Total liabilities		2012	22,040		8,243		(18,440	)	11,843
		2011	15,973		15,079		(14,158	)	16,894

7.0 Subsequent Events

Subsequent to the quarter ended April 30, 2012, the Company reached a settlement with its insurer concerning the settlement of legal claims against the Company and some of its Directors by two suppliers and a buying agent and importer to a former subsidiary of the Company. The Company expects to receive approximately $1.5-million during the quarter ending July 31, 2012.

On June 8, 2012, the Company declared a regular dividend of $0.025 per share to shareholders of record June 22, 2012, payable July 6, 2012.