Strongco Income Fund

Strongco Income Fund

June 21, 2010 16:50 ET

Strongco Increases Volvo Equipment Credit Facility to $120 Million

MISSISSAUGA, ONTARIO--(Marketwire - June 21, 2010) - Strongco Income Fund ("Strongco") (TSX:SQP.UN) announced today it has renewed its equipment floor plan credit facility with Volvo Financial Services and, through a syndication arrangement between Volvo Financial Services and Canadian Western Bank, Strongco has increased the credit available under this facility to $120 million from $75 million.

"We have increased available funding under this facility now to support Strongco's planned growth as the demand for our products increases and construction markets begin to recover," said Bob Dryburgh, President and Chief Executive Officer of Strongco. "This is another example of the strength of our relationship with the Volvo Group. We are pleased with the continuing support of Volvo Financial Services and are excited about our new financial partnership with Canadian Western Bank."

Strongco utilizes its credit facility with Volvo Financial Services as required to finance purchases of equipment inventory from Volvo Construction Equipment, which Strongco represents as a dealer in Alberta, Ontario, Quebec, Nova Scotia, New Brunswick, Prince Edward Island and Newfoundland & Labrador. Strongco is the largest volume dealer in North America for Volvo Construction Equipment and the largest producer of retail financing for Volvo Financial Services.

About Strongco

Strongco Income Fund is a trust established to hold one of the largest multi-line industrial equipment distribution providers in Canada. Over 500 employees provide retail service at 26 branches located from Newfoundland to Alberta. Strongco sells, rents and services mobile industrial equipment to sectors that include construction, road building, mining, forestry, utilities and municipalities. Strongco represents leading equipment manufacturers, including Volvo, Case, Manitowoc, Terex Cedarapids, Skyjack, Fassi, Allied, Gomaco, Taylor, ESCO and Dressta. Strongco Income Fund is listed on the Toronto Stock Exchange under the symbol SQP.UN.

About Volvo Group

Volvo Construction Equipment is a major international manufacturer of construction equipment and is part of the Volvo Group. Volvo Financial Services, the finance arm for Volvo Group, provides complete solutions for financing and service. The Volvo Group employs approximately 96,000 people, operates production facilities in 19 countries and sells its products in more than 180 markets. Volvo Group sales for 2009 totaled $29 billion US. The Volvo Group is a publicly held company headquartered in Gothenburg, Sweden. Volvo shares are listed on Nasdaq OMX Nordic Exchange and are traded OTC in the U.S.

About Canadian Western Bank

Canadian Western Bank offers a full range of business and personal banking services across the four western provinces and is the largest Canadian owned bank headquartered in Western Canada. The bank, along with its operating subsidiaries, Canadian Western Trust Company, Valiant Trust Company, Canadian Direct Insurance Incorporated, National Leasing Group Inc., Adroit Investment Management Ltd. and Canadian Western Financial Ltd., collectively offer a diversified range of financial services across Canada and are collectively known as the Canadian Western Bank Group. The common shares of Canadian Western Bank are listed on the Toronto Stock Exchange under the trading symbol 'CWB'. Refer to for additional information.

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