TERRAVEST INCOME FUND

TERRAVEST INCOME FUND

January 04, 2005 10:42 ET

TerraVest Income Fund Announces Increase to Exchangeable Share Ratio


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TERRAVEST INCOME FUND

TSX SYMBOL: TI.UN

JANUARY 4, 2005 - 10:42 ET

TerraVest Income Fund Announces Increase to
Exchangeable Share Ratio

EDMONTON, ALBERTA AND VEGREVILLE, ALBERTA--(CCNMatthews - Jan. 4, 2005)
- TerraVest Income Fund (TSX:TI.UN) is pleased to announce the increase
to the Exchange Ratio of the Exchangeable Shares of TerraVest
Exchangeco. Inc. from 1.04645 to 1.05459. This increase will be
effective January 17, 2005.



The following are the details of the calculation of the Exchange Ratio:

------------------------------------------------------------------------
Record Effective
Date of TerraVest Current Date of Exchange
TerraVest Income Market Increase Increase Ratio
Income Opening Fund Price in in as of
Fund Exchange Distribution of Unit Exchange Exchange Effective
Distribution Ratio per Unit (note 1) Ratio Ratio Date
------------------------------------------------------------------------
December January
31, 2004 1.04645 $0.08829 $11.35 0.00814 17, 2005 1.05459
------------------------------------------------------------------------


Note 1: The increase in the Exchange Ratio is calculated by multiplying
the TerraVest Income Fund Distribution per Unit by the Exchange Ratio
immediately prior to the Record Date and dividing by the weighted
average trading price for the 20 trading day period ending on the Record
Date.

A holder of Exchangeable Shares, Series 1 can exchange all or a portion
of their holdings into TerraVest Income Fund Units, at any time, by
giving notice and a retraction request to TerraVest Industries Inc. or
CIBC Mellon Trust Company at its principal transfer office at 600 The
Dome Tower, 333 - 7th Ave SW, Calgary, AB T2P 2Z1.

A holder of Exchangeable Shares, Series 2 will remain subordinated to
ordinary units and cannot exchange their holdings until the
subordination expires.

TerraVest Income Fund is an open-ended investment trust established for
the purposes of investing in a diversified group of income producing
businesses. The Fund currently has three operating divisions, R.J.V. Gas
Field Services, Stylus Made to Order Sofas and Ezee-On Manufacturing.
R.J.V. is one of the largest providers of wellhead processing equipment
for the Canadian natural gas industry. Stylus is one of Canada's leading
made-to-order upholstered furniture manufacturers. Ezee-On manufactures
heavy duty equipment for large acreage grain farms and livestock
operations.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    TerraVest Income Fund
    Thomas S. Kileen
    Chief Financial Officer
    (612) 215-6132
    (612) 215-6139 (FAX)
    or
    TerraVest Income Fund
    J. Patrick Howe
    Investor relations
    (416) 929-0512
    Email: ir@terravestindustries.com