Altus Group Income Fund

Altus Group Income Fund

May 15, 2006 19:37 ET

Altus Group Announces Closing of All West Surveys Ltd. Acquisition

TORONTO, ONTARIO--(CCNMatthews - May 15, 2006) - Altus Group Income Fund ("Altus") (TSX:AIF.UN) announced today that it has concluded its agreement to indirectly acquire the business of Alberta-based All West Surveys Ltd. ("All West") for approximately $48 million, comprised of approximately $31.5 million in cash, subject to adjustment, and the issuance of 1,178,571 Class B limited partnership units of Altus Group Limited Partnership.

Canaccord Capital Markets and BMO Nesbitt Burns Inc. co-led an underwriting syndicate that included RBC Capital Markets Inc. and Sprott Securities Inc. A total of 2,450,000 subscription receipts at a price of $14.75 per subscription receipt were sold to partially finance the deal.

Acquisition Highlights

All West is a professional survey company with 5 regional offices in Alberta. All West has been in business since 1974 and currently employs over 200 people. The company provides complete and specialized surveying services to oil and gas companies in Alberta, Saskatchewan, British Columbia, Northwest Territories, Yukon and Nunavut. All West's revenues increased from $23.7 million in 2004 to $29.2 million in 2005, representing growth of approximately 23%, largely attributable to extensive oil and gas infrastructure investments being made within these areas.

"We are extremely pleased to have concluded this agreement," said Gary Yeoman, Chief Executive Officer of Altus. "One of Altus' major strengths lies in the diversity of our consulting mix, which protects us from the cyclical nature of the real estate industry by enabling us to provide clients with a wide range of services. With All West now a part of that mix, our reach and stability base is stronger than ever."

"This transaction is an excellent opportunity for All West," said Albert Sharp, Chief Executive Officer of All West. "Altus' financial stability and solid position as a national industry leader will allow us to build upon our proven expertise and success in the West, expanding into new geographies and exploring opportunities to develop new service offerings."

Further information, including the short form prospectus, can be obtained on SEDAR at

Increase in Distributions

As announced on April 25th, Altus anticipates distributions are expected to increase from $1.15 to $1.20 per unit annually. Unitholders of record on June 30, 2006 would receive a monthly distribution of $0.10 per unit, compared with $0.0958 currently, payable on July 15th, 2006.

About Altus

Altus Group Income Fund is the leading independent multidisciplinary provider of real estate consulting and advisory services in Canada, with a staff of over 386 professionals. Altus has a national network of offices in 13 cities and operates as: Altus Helyar Research, Valuation and Advisory; Altus InSite; Altus Helyar Cost Consulting; and Altus Derbyshire Realty Tax Consulting. Altus' clients include banks, financial institutions, governments, pension funds, asset and fund managers, developers and landlords.

Certain statements in this news release may constitute "forward-looking" statements, which involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Altus and its subsidiary entities, including Altus Group Limited Partnership and Altus Group Limited, or the industry, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used, such statements use words such as "may", "will", "expect", "believe", "plan" and other similar terminology. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in Altus' publicly filed documents (which are available on SEDAR at

Those risks and uncertainties include: the ability to maintain profitability and manage growth; reliance on and retention of professionals; competition; performance obligations and client satisfaction; fixed price and contingency engagements; collectibility of accounts receivable; general state of the economy; possible acquisitions; possible future litigation; interest rate fluctuations; insurance limits; legislative and regulatory changes; revenue and cash flow volatility; operating risks; residential market risk; protection of intellectual property; appraisal mandates; restrictions on growth. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this news release. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, Altus cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this news release, and, except in accordance with applicable law, Altus assumes no obligations to update or revise them to reflect new events or circumstances. Additionally, Altus undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of Altus, its financial or operating results, or its securities.

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