The Catalyst Capital Group Inc. Comments on Braslyn Ltd. Offer to Acquire Outstanding Publicly Held Common Shares of Callidus Capital Corporation

Catalyst Will Not Tender to the Offer and Will Maintain Ownership
Position

Believes Callidus Business is Well-Positioned for Growth but Supports
Opportunity for Minority Shareholders to Choose Braslyn Offer

TORONTO–(BUSINESS WIRE)–The Catalyst Capital Group Inc. (“Catalyst”) today commented on the
disclosure by Braslyn Ltd. (“Braslyn” or the “Offeror”) that it has
offered to purchase all publicly held common shares of Callidus Capital
Corporation (“Callidus”) (TSX:CBL) for C$2.00 per share (the “Offer”).

Catalyst is not making the Offer, does not intend to tender shares into
the Offer and will maintain its existing 72% share ownership of
Callidus. Catalyst and the Offeror have had discussions regarding the
terms of mutually acceptable Catalyst rollover and support agreements to
be entered into as a condition of the Offer. Accordingly, if the Offer
proceeds and the requisite majority of public Callidus shareholders
support the Offer, Catalyst intends to cooperate as necessary to permit
the public shareholders to obtain the benefit of the Offer and to permit
the privatization of Callidus. Newton Glassman and James Riley of
Catalyst, both Directors of Callidus, have been recused from the
Callidus board deliberations throughout the Callidus privatization
process and will remain so.

Rocco DiPucchio, a Managing Director and Partner of Catalyst, said,
Catalyst believes in Callidus’ prospects, that it has substantial
unrecognized value and that it is a tremendous vehicle for further value
creation over the long-term. Callidus has reached a point where the
portfolio is growing, additional leadership is in place and legacy
assets are beginning to be monetized at favourable values. However,
Catalyst recognizes that the Offer by Braslyn represents an opportunity
for minority shareholders to receive a premium to the recent market
price of the shares and for Callidus to continue its turnaround as a
private company. Callidus’ public shareholders have a choice on this
Offer and Catalyst intends to respect the outcome of their decision.

About The Catalyst Capital Group Inc.

The Catalyst Capital Group Inc., a private equity investment firm with
more than $6 billion in assets under management founded in 2002, is a
leader in operationally focused turnaround investing. The firm’s mandate
is to manufacture risk adjusted returns, in keeping with its philosophy
of “we buy what we can build.” Catalyst’s Guiding Principles of
investment excellence through operational involvement, superior
analytics, attention to detail, intellectual curiosity, team and
reputation are key to the firm’s success. The Catalyst team collectively
possesses more than 110 years of extensive experience in restructuring,
credit markets and merchant and investment banking in Canada, the United
States, Latin America and Europe. For more information, please visit www.catcapital.com.

Contacts

Media
Gagnier Communications
Dan Gagnier, +1-646-569-5897
dg@gagnierfc.com