GENDIS INC. NEWS RELEASE For immediate release

GENDIS INC. ANNOUNCES THIRD QUARTER PROFIT
Winnipeg, Manitoba (December 9, 2013) - Gendis Inc. (TSX:GDS) today announced its financial results for the 3rd quarter ended October 31, 2013.
Revenue for the 3rd quarter was $1,500,000 compared to $1,431,000 for last year's 3rd quarter. Revenue less expense for the 3rd quarter was $756,000 compared to $730,000 for last year's 3rd quarter. Net earnings for the 3rd quarter were $1,347,000 ($0.10 per share) compared to a loss of $791,000 ($0.06 per share) for last year's 3rd quarter.
Revenue year-to-date was $4,560,000 compared to $4,471,000 year-to-date last year. Revenue less expense year-to-date was $2,038,000 compared to
$1,718,000 year-to-date last year. Net loss year-to-date was $548,000 ($0.04 per share) compared to a loss of $8,300,000 ($0.60 per share) year-to-date last year.
The volatility in net earnings quarter over quarter and year over year is primarily due to the change in fair value of equity investments and investment properties with the attendant effect on deferred income taxes. Also, the 2nd quarter last year included the settlement with our insurer on legal claims in a prior year.
Condensed summarized information is as follows:
Quarter ended YTD ended
in millions of Canadian dollars Oct 31 Oct 31 Oct 31 Oct 31

except per share 2013 2012 2013 2012

Revenue
r
Oct 31 Jan 31 Oct 31

in millions of Canadian dollars 2013 2013 2012

Fair value of investments:
Veresen 25.7 25.7 25.8
Osum 11.5 14.5 17.4
Other equity investments 3.4 3.0 1.8
Investment properties 29.0 29.8 27.9
Other assets 0.8 2.0 0.7
Debt & payables 3.2 5.2 5.5
Deferred tax payable 0.4 0.6 2.4
Shareholders' equity 66.8 69.3 65.7
Quarter ended Year to date ended
Oct 31 Oct 31 Oct 31 Oct 31

in millions of Canadian dollars 2013 2012 2013 2012

Cash flow from: Operations
Cash receipts 1.6 1.6 4.8 4.7
Cash disbursements & finance expense (0.8) (0.8) (2.8) (3.0) Settlement of legal claims - - - 1.5
Income taxes recovered (paid) - - (0.2) 0.7
Investing
Proceeds on sales of investments - - 2.1 0.1
Purchase of investments - - - (2.7) Expenditures on investment properties (0.2) (0.5) (0.2) (0.5)
Financing

Increase (decrease) in debt

0.1

0.1

(1.9)

0.3

Purchase of share capital for

cancellation

(0.4)

(0.1)

(0.8)

(0.2)

Dividends

(0.3)

(0.3)

(1.0)

(1.0)

For more information, please contact: James E. Cohen
GENDIS INC.
INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION
Oct 31 Jan 31 Oct 31

(unaudited - thousands of Canadian dollars) 2013 2013 2012

ASSETS
Current assets
Cash 99 77 10

Receivables 627 1,929 710

Total current assets 726 2,006 720 Non-current assets

Equity investments (note 2) 40,610 43,167 44,930
Investment property 28,965 29,775 27,900

Furnishings and equipment 59 48 39

Total non-current assets 69,634 72,990 72,869 Total assets 70,360 74,996 73,589

LIABILITIES
Current liabilities
Credit facilities (note 3) 1,599 3,500 3,897

Payables 566 763 626

Total current liabilities 2,165 4,263 4,523 Non-current liabilities

Post employment benefit obligation 972 972 951

Deferred income tax payable 385 578 2,438

Total non-current liabilities 1,357 1,550 3,389

Total liabilities 3,522 5,813 7,912

SHAREHOLDERS' EQUITY 66,838 69,183 65,677 Total liabilities and shareholders' equity 70,360 74,996 73,589

GENDIS INC.
INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIODS ENDED OCTOBER 31
(unaudited - thousands of Canadian Quarter ended Year-to-date ended

dollars except for share data) 2013 2012 2013 2012

Revenue
Lease rentals 987 931 3,046 2,959

Dividends 513 500 1,514 1,512

Total revenue 1,500 1,431 4,560 4,471 Expense

Property 414 370 1,451 1,413
Administration 313 301 1,018 1,206

Finance 17 30 53 134

Total expense 744 701 2,522 2,753

Revenue less expense 756 730 2,038 1,718 Fair value change

Investment properties 743 (851) (1,037) (131)

Equity investments 103 (807) (1,585) (13,503)

Total fair value change 846 (1,658) (2,622) (13,634)

Settlement of legal claims - - - 1,483 Earnings (loss) before income tax 1,602 (928) (584) (10,433)

Income tax (expense) recovery (255) 137 36 2,133

Net earnings (loss) from operations

and comprehensive income (loss) 1,347 (791) (548) (8,300)
Net earnings (loss) from operations

per share $0.10 $(0.06) $(0.04) $(0.60)
GENDIS INC.
INTERIM CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(unaudited - thousands - shares & Canadian dollars as applicable)
Share Capital Retained earnings
Total

# $ $ $

Balance - January 31, 2012

13,937

14,650

60,515

75,165

Comprehensive loss

Purchase of share capital for

(8,300)

(8,300)

cancellation

(46)

(48)

(95)

(143)

Dividends paid (1,045) (1,045)

Balance - October 31, 2013 13,891 14,602 51,075 65,677
For the remainder of the year:
Comprehensive income 4,082 4,082
Purchase of share capital for
cancellation (75) (79) (151) (230)

Dividend paid (346) (346)

Balance - January 31, 2013
Comprehensive loss
Purchase of share capital for
cancellation (244) (257) (510) (767)

Dividends paid (1,030) (1,030) Balance - October 31, 2013 13,572 14,266 52,572 66,838

GENDIS INC.
INTERIM CONDENSED STATEMENT OF CASH FLOWS FOR THE PERIODS ENDED OCTOBER 31
(unaudited - thousands of Canadian Quarter ended Year to date ended

dollars) 2013 2012 2013 2012

Changes in cash position
By operations
Cash receipts 1,639 1,580 4,834 4,665
Cash disbursements (788) (760) (2,750) (2,868) Settlement of legal claims - - - 1,483
Income taxes (paid) recovered - - (203) 706

Finance expense paid (17) (28) (54) (135)

Total by operations 834 792 1,827 3,851 By investing activities

Proceeds from sale of equity
investments - - 2,144 118
Acquisition of equity investments - - - (2,739) Expenditures on investment property (147) (471) (227) (471) Expenditures on furnishings and

equipment (10) - (25) -

Total by investing activities (157) (471) 1,892 (3,092) By financing activities

Net advance (repayment) of credit
facilities 100 103 (1,900) 297
Purchase of share capital for
cancellation (444) (124) (767) (143)

Dividends paid (342) (348) (1,030) (1,045)

Total by financing activities (686) (369) (3,697) (891) Increase (decrease) in cash (9) (48) 22 (132)

Cash - beginning of period 108 58 77 142


Cash - end of period 99 10 99 10
Gendis Inc.
Notes to the unaudited Interim condensed Financial Statements
January 31, 2013

(All tabular amounts in thousands of Canadian dollars unless otherwise

stated)

1. General information
General information on Gendis Inc. is the same as disclosed in Note 1 to the complete audited annual financial statements for the year ended January 31, 2013, which have been prepared in accordance with International Financial Reporting Standards. These interim condensed financial statements are presented in Canadian dollars, which is the Company's functional and presentation currency. The principal accounting policies applied in the preparation of these interim condensed financial statements are the same as set out in Note 2 to the complete audited annual financial statements for the year ended January 31, 2013. These policies have been consistently applied to all periods presented.
2. Investments
Oct 31 Jan 31

2013 2013
Veresen 25,740 25,660
Osum 11,502 14,487

Other equity investments 3,368 3,020

40,610 43,167
3. Credit facilities
Borrowing
Balance

Remaining borrowing availability
Carrying value of collateral
Oct 31 Jan 31 Oct 31 Jan 31 Oct 31 Jan 31

2013 2013 2013 2013 2013 2013
Banker's acceptances 999 3,000

Bank demand loan 600 500

1,599 3,500 8,400 6,500 23,890 23,760

Broker's margin account - - 953 1,205 2,494 2,920

1,599 3,500 9,353 7,705 26,384 26,680
4. Subsequent Event
On December 9, 2013, the Company declared a regular dividend of 2.5¢ per share to shareholders of record December 20, 2013, payable January 3,
2014.
5. Operating segments

Quarter

Ended

Oct 31 Realty Corporate

Inter-

segment Total

Revenue 2013 1,004 723 (227) 1,500
2012 948 717 (234) 1,431
Property & administration 2013 468 330 (71) 727 expense 2012 424 318 (71) 671
Finance expense 2013 156 17 (156) 17
2012 163 30 (163) 30
Fair value change 2013 743 103 - 846
2012 (851) (807) - (1,658)
Income tax recovery (expense) 2013 (303) 48 - (255)
2012 132 5 - 137
Net earnings from operations 2013 820 527 - 1,347

& Comprehensive income 2012 (358) (433) - (791)

YTD Ended

Oct 31 Realty Corporate

Inter-

segment Total

Revenue 2013 3,098 2,145 (683) 4,560
2012 3,011 2,161 (701) 4,471
Property & administration 2013 1,613 1,070 (214) 2,469
Expense 2012 1,575 1,258 (214) 2,619
Finance expense 2013 469 53 (469) 53
2012 487 134 (487) 134
Fair value change 2013 (1,037) (1,585) - (2,622)
2012 (131) (13,503) - (13,634)
Settlement of legal claims 2013 - - - -
2012 - 1,483 - 1,483
Income tax recovery (expense) 2013 6 30 - 36
2012 (221) 2,354 - 2,133
Net earnings from operations 2013 (15) (533) - (548)
& Comprehensive income 2012 597 (8,897) - (8,300)
Total assets 2013 29,443 62,060 (21,143) 70,360
2012 28,419 63,921 (18,751) 73,589
Total liabilities 2013 21,368 3,297 (21,143) 3,522
2012 22,286 4,377 (18,751) 7,912

distributed by