W.P. Stewart & Co., Ltd. Announces a Series of Initiatives to Enhance Shareholder Value

W.P. Stewart & Co., Ltd. Announces a Series of Initiatives to Enhance Shareholder Value

August 22, 2006

    HAMILTON, Bermuda, Aug. 22 /Xinhua-PRNewswire/ -- W.P.
Stewart & Co., Ltd. announced today a series of
initiatives to enhance shareholder value over the
longer-term.  

    At a recent meeting, the Board of Directors agreed to
invest $30 million of the Company's capital as seed
financing for the creation of new pooled investment
products which were previously announced on 27 July 2006.
These will include two new pooled funds which target
investors with large asset bases utilizing both relative
and absolute performance fee structures and will also
include the introduction during the fourth quarter of 2006
of an EAFE fund (World ex U.S.) to the Company's worldwide
client base. These investments reflect the Board's strong
confidence in the W.P. Stewart investment style and a
commitment to capitalize on new opportunities identified by
the Company. 

    The Board announced that 199,226 shares had been
purchased, at an aggregate cost of approximately $2.1
million, in open market transactions in recent weeks and
that these shares have been cancelled. This action occurred
under the Board's previously authorized $30 million share
repurchase program.
 
    In addition, the Board has mandated a thorough review
of the Company's operating expenses while maintaining its
commitment to the investment management process and to
enhancing the marketing and client service initiatives.
Management is confident that significant savings can be
realized. While a minor impact may be evident in the fourth
quarter of 2006, the majority of these savings will be
realized in calendar 2007. 

    Further, the Board of Directors reviewed the Company's
dividend policy and confirmed its long-standing commitment
of authorizing the payment of dividends in amounts that
represent substantially all cash earnings.

    Commenting on these announcements, William P. Stewart,
Chairman of the Board, said, "With these actions, and
others that must be taken to address the challenges facing
our Company, the Board of Directors has underscored our
commitment to enhance shareholder value over a sustained
period of time."

    Mr. Stewart noted that, "While we currently face a
challenging environment in which our investment style has
been out-of-favor, the Board remains confident that the
Company will generate superior returns over the long-term
for our clients and shareholders worldwide."

    The Chairman acknowledged that, "the selection of
a strong, long-term leader as our new Chief Executive
Officer is obviously imperative. Several candidates have
been identified and I am hopeful that we will be in a
position to make this important decision within the next
few months."

    W.P. Stewart & Co., Ltd. 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 + 441-295-8585
(outside the United States) or e-mail to
[e-mail] .

    For more information, please contact:

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

SOURCE  W.P. Stewart & Co., Ltd.