YELLOW PAGES INCOME FUND
TSX : YLO.UN

YELLOW PAGES INCOME FUND

February 11, 2010 06:00 ET

Yellow Pages Income Fund Provides Clarity on Path to Conversion to a Corporation

MONTREAL, QUEBEC--(Marketwire - Feb. 11, 2010) - Yellow Pages Income Fund (TSX:YLO.UN)

- $0.80 annual distribution to be maintained until December 2010

- Starting in January 2011, initial dividend set at $0.65 per year to be paid monthly

- Conversion to take place by the end of 2010, subject to unitholders' vote

- Dividend policy intended to provide shareholders a sustainable source of income

Yellow Pages Income Fund (TSX:YLO.UN) announced details on its path to conversion from an income trust to a traditional corporate structure (the "Conversion"). In light of past legislative changes to the business income trust market, the Conversion is expected to provide a more attractive environment for YPG's securities while broadening the potential investor base.

Dividend Policy Post Conversion

The Company will continue to distribute $0.80 annually until December 2010. YPG's Board of Trustees has approved the dividend policy post conversion. Commencing with the January 31, 2011 dividend (record date), the dividend policy will initially be set at $0.0542 per share on a monthly basis or $0.65 annually. This level of dividend is consistent with the preliminary dividend policy communicated last May and reflects a payout ratio of 60% to 70% of cash earnings per share. Please refer to Exhibit 1 below for detailed monthly payments.

"Today's specifics on YPG's conversion to a traditional corporate structure should provide investors the clarity they are looking for. We believe the initial dividend will enable us to offer a sustainable return to our investors. Furthermore, our new product initiatives should allow us to re-acquire growth in the future as we extend our market leadership to new segments", said Marc P. Tellier, President and Chief Executive Officer of Yellow Pages Group.

Corporate Conversion

It is contemplated that the Conversion will be undertaken pursuant to a statutory plan of arrangement under the Canada Business Corporations Act, and will require the approval of YPG unitholders, as well as all required regulatory stock exchange and court approvals. A management information circular and proxy statement outlining the details of the Conversion is expected to be mailed to YPG unitholders by the end of March 2010. To be implemented, the Conversion must be approved by not less than 66 2/3 percent of the votes cast by unitholders voting in person or by proxy at the related special unitholders' meeting which will be held on May 6, 2010, concurrently with the Company's annual general meeting.



Exhibit 1
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Payment
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Record Date Payment Date Monthly Annual
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2/26/2010 3/15/2010 0.0667 0.80
3/31/2010 4/15/2010 0.0667 0.80
4/30/2010 5/17/2010 0.0667 0.80
5/31/2010 6/15/2010 0.0667 0.80
6/30/2010 7/15/2010 0.0667 0.80
7/30/2010 8/16/2010 0.0667 0.80
8/31/2010 9/15/2010 0.0667 0.80
9/30/2010 10/15/2010 0.0667 0.80
10/29/2010 11/15/2010 0.0667 0.80
11/30/2010 12/15/2010 0.0667 0.80
12/31/2010 1/17/2010 0.0667 0.80
1/31/2011 2/15/2011 0.0542 0.65
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About Yellow Media Inc.

Yellow Media Inc., a subsidiary of Yellow Pages Income Fund, owns Yellow Pages Group and Trader Corporation. Yellow Pages Group (YPG) is Canada's leading performance media and marketing solutions company. The Company brings consumers and businesses together locally through its network of print, digital and mobile properties. YPG enables consumers to make smarter decisions, helping people find what they need wherever and whenever. YPG partners with businesses to build successful marketing and lead generation programs, helping them grow their business. Trader Corporation (Trader) is a leader in print and digital vertical media and offers a broad set of services such as inventory management, web solutions, optimization of media spend, and lead generation campaigns. Trader caters to the automotive, real estate and generalist verticals. Yellow Media Inc. owns and operates some of Canada's leading properties and publication including Yellow Pages™ directories, YellowPages.ca™, Canada411.ca™, Auto Trader™(.ca), Home Trader™(.ca), and LesPAC.com. For more information, www.ypg.com.

Caution Concerning Forward-Looking Statements

This press release contains forward-looking statements about the financial conditions of the Fund. These statements are forward-looking as they are based on our current expectations, as at February 11, 2010. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. We disclaim any intention or obligation to update any forward-looking statements, except as required by law, even if new information becomes available, as a result of future events or for any other reason.

Contact Information

  • Media:
    Yellow Pages Income Fund
    Annie Marsolais
    Director, Corporate Communications
    514-934-4016
    annie.marsolais@ypg.com
    or
    Investor Relations:
    Yellow Pages Income Fund
    Anne-Sophie Roy
    Director - Corporate Finance and Investor Relations
    514-934-2828
    anne-sophie.roy@ypg.com