For Immediate Release

March 26, 2007

Proposed Budget 2007 helps make RESPs more accessible to Canadians

The Federal Government's Budget 2007 proposes to lift some of the Registered Education Savings Plan (RESP) restrictions. Removing these restrictions will allow parents to contribute more to their children's education savings plan, sooner.

"These proposed changes to the RESP limits will hopefully encourage more parents to start saving for their children's college and university education," says Chairman and CEO Sam Bouji, Global Educational Marketing Corporation.

Currently, less than half of Canadian parents are saving for their children's post-secondary education and taking advantage of the $9,200 in government grants.

Here are the key changes:

Registered Educational Savings Plan Proposed Changes

• Eliminating the $4,000 annual RESP contribution limits
• Increasing the lifetime contribution limit from $42,000 to $50,000

Canadian Education Savings Grant Proposed Changes

• Increasing the maximum annual RESP contribution qualifying for the 20% CESG from $2,000 to $2,500-which adds $100 in eligible grant to a total of $500. As a result, the maximum unused grant room where parents can 'catch-up' their CESG-eligible RESP contributions increases from $800 to $1,000 a year.

With compounded growth, even small increases early in the education savings plan can result in additional thousands of dollars towards their children's college or university education.

In addition to the changes to RESP contribution limits, the government is also proposing to loosen what education RESPs can fund.

"Many people don't have the time to attend college or university full-time," says Bouji. "Any changes that improves the accessibility of higher education is a step in the right direction."

Proposed Changes to what an RESP can fund

• Reduce the part-time studies qualifying criteria from 10 hours per week to 12 hours per month for a course at least 3 consecutive weeks
• Allow up to $2,500 in Education Assistance Payments for each 13-week semester of study

These proposed changes have not taken affect. However, the Budget 2007 is expected to receive Royal Assent before the summer. Once legislation and delivery systems are in place, Canadians will be able to take advantage of these changes.

The cost for tuition and other expenses related to the post-secondary studies (such as books, supplies and accommodations) continue to rise. By the time a child born this year is ready to go to university, the cost is estimated to reach well over $100,000 for an average four-year Bachelor of Arts Degree (according to the federal government's "CanLearn" website www.canlearn.ca, using the Education Cost Calculator).

Media inquiries, please contact:

Maja Begovic or Rudy Bartolome
Marketing and Communications
Global family of companies
Tel: (416) 741-7377 ext. 3501
Fax: (416) 741-8987
Email: media@globalfinancial.ca