CP Ships Chairman asked to repay stock trading gains

CP Ships Chairman and CEO Ray Miles and other executives have been asked to make "appropriate restitution" to the company for any gains made in improper stock trading earlier this year.

CP Ships Limited reported today that its Special Committee comprised of four independent directors and chaired by Peter Dey has completed a previously announced investigation into stock trading activities in May and June of this year by "certain officers of the company.:

The Special Committee investigation addresses, among other things, issues raised in an August 2004 letter from the Ontario Securities Commission concerning these stock trading activities.

The Special Committee found that trading in shares of the company by certain officers in that period should not have taken place.

The Special Committee concluded that there was no intent to violate applicable securities laws. It also noted that the trading was done openly and with required internal trading approvals.

The Special Committee has requested that the individuals involved, including Chairman Ray Miles, make appropriate restitution to the Company in respect of such trading activity. The Company will continue to co-operate fully with securities regulatory authorities.

Miles took on CEO responsibilities at CP Ships on December 1, 2004 following the resignation of Frank Halliwell "due to differences with the board on future direction of the company,"

The Board of CP Ships says it "considered all relevant factors, including the findings of the Special Committee, in conferring executive responsibility on Mr. Miles followingHalliwell's resignation.

CP Ships says that Halliwell did not engage in any trading activity in the relevant period.

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