OTTAWA - Export Development Canada (EDC) today reported a record increase in demand for its products and services, which led to record business volumes for the Corporation in 2008.

As access to credit tightened substantially around the world, EDC's combined financing and insurance volumes reached $85.8 billion in 2008 while serving 8,312 Canadian companies. These figures represent the highest annual levels of total business volume and customers in the Corporation's 64-year history, with 23 per cent and 11 per cent growth compared to 2007, respectively.

"Meeting this increased customer demand drew on all of EDC's expertise and resources," said Eric Siegel, President and CEO of EDC. "Our prudent risk management allowed us to continue to be there for Canadian companies when they needed us most, which meant that EDC was able to respond to their needs by facilitating $16 billion more in new business compared to last year."

The government of Canada provided EDC with greater operational and financial flexibility in 2008, including an increase in the Corporation's borrowing authority announced in the fall and a capital injection of $350 million announced in November. The changes were designed to meet the growing needs of its customers and to help support EDC's efforts in highly impacted sectors like automotive and manufacturing.

In 2008, EDC provided a total of $4.2 billion in support to the auto sector through its financing and insurance products and services. EDC remains committed to the sector in 2009, having already offered more than $250 million in new insurance coverage so far this year and creating a $200 million high-risk financing pool for auto parts suppliers and toolers.

"The Government has provided EDC with much greater financial flexibility
to be a strong contributor in responding to the credit needs of Canadian
companies," continued Mr. Siegel. "EDC's focus leading into 2008 had been on
adding value for the customer, efficiency and making it easier for companies
to access the full range of our services and knowledge. As a result, EDC was
ready with the latest and most relevant information, our best advice and
timely, effective delivery of services and products."

In 2008, EDC's response to increased credit demand complemented the
efforts of Canada's financial institutions through the sharing of
transactional risks. EDC's business undertaken in partnership with financial
institutions increased by 20 per cent in 2008, for a total of $14.1 billion in
support of 4,450 transactions.

EDC's business volume in emerging markets grew by 31 per cent over 2007,
reaching nearly $22 billion or 25.6 per cent of EDC's overall business.
Brazil, Russia and the Commonwealth of Independent States (CIS), India, China
and Mexico remained the priority emerging markets for Canadian companies, and
EDC business volumes in those markets totalled $11 billion, a 45 per cent
increase over 2007.

EDC increased the number of its transactions in support of Canadian
direct investment abroad by 16 per cent in 2008.

More than 82 per cent of EDC's customers in 2008 were small- and
medium-sized enterprises, and the value of their business through EDC reached
$17.8 billion.

EDC's net income for 2008 was $206 million, a decrease of $267 million
from 2007. The lower net income was primarily due to an increased provision
for credit losses and higher claims-related expenses. These increases reflect
the impact of the global economic crisis on EDC's financing and insurance
portfolios.

EDC's provision for credit losses was $346 million in 2008, an increase
of $150 million over 2007.

Claims-related expenses of $222 million were $90 million higher than
2007. The increase was primarily due to higher claim payments and an increased
allowance for claims on insurance policies at the end of the year,
particularly within the automotive and retail sectors, as well as growth in
EDC's portfolio.

Other key results include:

- EDC's assets increased by 52.7 per cent to $35.3 billion from
December 31, 2007, partly the result of a weaker Canadian dollar;

- The total allowance for loan-related losses and insurance claims was
$3.3 billion at December 31, 2008;

- Total paid-in capital, retained earnings (including other accumulated
comprehensive income) and allowances at December 31, 2008 were
$9.4 billion;

- Impaired loans as a percentage of gross loans receivable decreased
slightly from 3.1 per cent at the end of 2007 to 2.9 per cent at
December 31, 2008.

- The number of insurance claims paid was 1,467, a 9 per cent increase
from 2007. The dollar value of those claims was $104 million compared
to $60 million in 2007;

- Administrative expenses increased by 10 per cent to $240 million from
$219 million in 2007.
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EDC is Canada's export credit agency, offering innovative commercial
solutions to help Canadian exporters and investors expand their international
business. EDC's knowledge and partnerships are used by more than 8,300
Canadian companies and their global customers in up to 200 markets worldwide
each year. EDC is financially self-sustaining and is a recognized leader in
financial reporting, economic analysis and has been recognized as one of
Canada's Top 100 Employers for eight consecutive years.