W.P. Stewart Provides Update on Business Developments in First Quarter 2007 Board of Directors Changes Dividend Policy

W.P. Stewart Provides Update on Business Developments in First Quarter 2007 Board of Directors Changes Dividend Policy

March 30, 2007

Declares Quarterly Dividend of $0.15 per share payable 28
April 2007 


    HAMILTON, Bermuda, March 30 /Xinhua-PRNewswire/ --
Following a meeting of the Company's Board of Directors,
W.P. Stewart & Co., Ltd. announced updates to its
business activities in the first quarter of 2007 and
announced a change in the dividend policy. 
 
    First Quarter Update
                                           
    Performance in the W.P. Stewart & Co., Ltd. U.S.
Equity Composite (the "Composite") is lagging
slightly behind the S&P 500 Index for the year to date.
Preliminary indications are that assets under management
("AUM") as of 23 March 2007 were approximately
$7.0 billion, compared with approximately $8.1 billion at
31 December 2006. 

    "While these remain challenging times for our
Company," Bill Stewart, Chairman, said, "I am
confident we are on the right path to restore our company's
legacy.  We have initiated a process of renewal as we
explore a range of opportunities to significantly enhance
our business for the future benefit of our clients and
shareholders.  

    "Most importantly," he continued, "we
are focusing our analysts and managers on achieving
absolute returns and have reaffirmed our stretch goal of 15
percent compounded annual returns over a five to ten year
horizon. This goal should be achievable given the quality,
growth and the current low valuation of the companies that
make up our investment universe and in which we invest our
clients' accounts. We will also focus on adding more highly
successful investors to our team in the coming year." 

    The North American investment group has thoroughly
reviewed all company coverage in the U.S. universe, adding
two new investment names and removing two from the
universe. In March, the team -- now including Bill Stewart,
Bob Kahn, a founding partner and portfolio manager and Mark
Phelps, Managing Director - Global Investments --
rebalanced the portfolios, placing more emphasis on the
highest quality companies within the universe. The U.S.
equity team will be expanded to nine senior professionals
on 10 April 2007, when a new analyst joins the Company. 

    As expected following the management changes announced
on 1 February 2007, AUM for the quarter to date reflects
net outflows of approximately $1.1 billion. Further, there
will be additional outflows of at least $325 million in the
current quarter, as one large sub-advised fund notified the
Company of its decision to close their account by 31 March
2007. In commenting on these developments, Mr. Stewart
said; "Virtually all clients have been contacted and
meetings have been held or scheduled with many. While it is
too soon to say what the final flows will look like this
year, I am encouraged by the general response of many of
the clients we have met with recently. Our sense is that
many of the balance of our clients, especially those high
net worth clients with whom we have worked for many years,
remain committed to sustaining their relationships with
W.P. Stewart." 

    During the month of February 2007, the Company entered
into agreements with certain employees whose employment
with the Company terminated in the first quarter. In
accordance with the terms of these agreements, the Company
will incur one-time, non-recurring cash expenses of
approximately $1,600,000 and non-cash charges related to
restricted shares of approximately $4,200,000 in the first
quarter of 2007. Combined, these one-time, non-recurring
charges will equate to approximately $0.11 per share,
diluted, on a tax effected basis and will reduce first
quarter earnings accordingly. 
 
    Change in Dividend Policy 

    The Board of Directors has decided to change the way
the Company pays its dividend, moving from the historic
pattern of four equal quarterly amounts to a new policy of
paying lower amounts in the first three quarters and a
final, fourth payment in January, based on cash earnings
for the year, including any performance fees received in
the fourth quarter.  

    This new policy allows the Company better to cope with
the unpredictability associated with market appreciation,
which is always hard to forecast in the short term and the
related uncertainty about the amount of performance fee
income for the year. As always, the Board will continue to
review the dividend on a quarterly basis and while
non-recurring cash charges, extraordinary transactions and
other developments could affect the amount of the dividend
payment in any quarter, the Company's long-standing policy
of paying dividends approximating substantially all its
yearly cash earnings remains in effect. 

    Reflecting the new policy, the Board today declared a
regular quarterly dividend of US$0.15 per common share,
payable on 28 April 2007, to shareholders of record on 14
April 2007.  

    Mr. Stewart noted the Company continues to develop new
growth opportunities.  "Internationally," Mr.
Stewart continued, "with a global investment platform
in place, we are developing our global and regional
investment services as a complement to our traditional U.
S. equity services, positioning W.P. Stewart where
investment management demand is rising strongly, and which
we anticipate will be a very profitable business over the
next several years. 

    "In summary, we are working hard to reestablish
and strengthen relationships with our exceptional client
base and to focus investment management on our proven
investment philosophy. I appreciate the support our clients
have shown the firm and look forward to repaying their
loyalty with strong investment results over the
longer-term." 
 
    W.P. Stewart is an asset management company that has
provided research-intensive equity management services to
clients throughout the world since 1975. The Company is
headquartered in Hamilton, Bermuda and has additional
operations or affiliates in the United States, Europe and
Asia.  
 
    The Company's shares are listed for trading on the New
York Stock Exchange (NYSE: WPL) and on the Bermuda Stock
Exchange (BSX: WPS).  
 
    For more information, please visit the Company's
website at http://www.wpstewart.com , or call W.P. Stewart
Investor Relations (Fred M. Ryan) at 1-888-695-4092
(toll-free within the United States) or [phone]
(outside the United States) or e-mail to
[e-mail] .  
 


    For more information, please contact:

     Fred Ryan
     W.P. Stewart
     Tel: [phone]