Statement by the Catalyst Capital Group on Telus/Mobilicity Agreement

TORONTO, ONTARIO--(Marketwired - May 16, 2013) - Catalyst Capital Group today welcomed news that Telus has entered into an agreement to acquire Mobilicity, subject to conditions that include approvals from the Competition Bureau, Industry Canada and Mobilicity's debtholders.

As the largest debtholder in Mobility, Catalyst is open to any deal that fully honours its rights. Catalyst's investment in Mobilicity has always been as a secured lender. We have neither bid on the company nor had any interest in acquiring it outright.

Catalyst still believes that the Canadian wireless market can support an independent, strong, national fourth carrier that will offer consumers real choice, while meeting the government`s priority to provide greater wireless coverage at better rates for consumers.

We remain open to continuing to offer our restructuring and telecommunications industry expertise to invest in the right player, provided the policy and regulatory environments are appropriate.

Catalyst Capital Group looks forward to continuing to explore the potential for a viable made-in-Canada fourth national carrier in the weeks and months to come, as we protect our rights as a secured lender to Mobilicity.