Pacific & Western Credit Corp. announced the demise of Douglas W. Gough, the Chairman of the Board. Doug was a member of the Board since 1996. The Honourable Thomas A. Hockin, Chairman of PWC's wholly-owned subsidiary, Pacific & Western Bank of Canada, has been appointed by PWC's Board of Directors as the new Chairman.

Pacific & Western Credit Corp. will pay a quarterly dividend on its outstanding Class 'B' Preferred Shares on September 30, 2009 at the rate of $2.25 per annum. The dividend will be in the amount of approximately $0.185 per Class 'B' Preferred Share, comprised of approximately $0.069 cash and approximately 0.029 common shares per Class 'B' Preferred Share. The dividends to which this notice relates are payable on September 30, 2009 to Class 'B' Preferred Shareholders of record at the close of business on September 14, 2009.

Pacific & Western Credit Corp. reported unaudited consolidated earnings results for the third quarter and nine months ended July 31, 2009. For the quarter, the company reported net loss of CAD 2,969,000 or CAD 0.22 per diluted share compared to net loss of CAD 4,215,000 or CAD 0.31 per diluted share in the same period of previous year. Interest income for the period was CAD 19,476,000 against CAD 16,022,000 for the same period a year ago. Net interest loss after provision for credit losses was CAD 549,000 and loss before income taxes was CAD 3,858,000 against net interest income after provision for credit losses of CAD 702,000 and loss before income taxes of CAD 6,385,000 for the same period a year earlier. Total revenue which is comprised of net interest income after the provision for credit losses and other income, was CAD 579,000 for the quarter compared to CAD 2,183,000 a year ago with the difference being due to a decrease in net interest income for the current quarter partially offset by the impact of an impairment charge of CAD 3.7 million in the same quarter a year ago. Cash used in operating activities was CAD 8,765,000 against CAD 12,555,000 for the same period a year earlier. Negative return on average total assets was 0.73% against 1.21% for the same period a year ago. Net loss for the current quarter was impacted primarily by a decrease in net interest income which was CAD 220,000 for the quarter compared to CAD 1.6 million for the same period a year ago. For the nine months, the company reported net loss of CAD 7,838,000 or CAD 0.59 per diluted share compared to net loss of CAD 4,280,000 or CAD 0.33 per diluted share in the same period of previous year. Interest income for the period was CAD 57,215,000 against CAD 54,504,000 for the same period a year ago. Net interest income after provision for credit losses was CAD 499,000 and loss before income taxes was CAD 10,501,000 against net interest income after provision for credit losses of CAD 7,127,000 and loss before income taxes of CAD 7,138,000 for the same period a year earlier. On a year-to-date basis, total revenue was CAD 2.1 million compared to CAD 5.8 million a year ago. The decrease in total revenue from a year ago was due primarily to a decrease in net interest income and charges totalling CAD 483,000 million included in other income (charges) recorded in the current period relating to mark-to-market adjustments on interest rate swap contracts that had been entered into for interest risk management purposes. Cash used in operating activities was CAD 15,711,000 against CAD 22,424,000 for the same period a year earlier. Negative return on average total assets was 0.67% against 0.39% for the same period a year ago.