Advanced Fiber Technologies (AFT) Income Fund

Advanced Fiber Technologies (AFT) Income Fund

March 15, 2005 13:35 ET

Advanced Fiber Technologies (AFT) Income Fund Modifies its Unitholders Rights Plan


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ADVANCED FIBER TECHNOLOGIES (AFT) INCOME FUND

TSX SYMBOL: AFT.UN

MARCH 15, 2005 - 13:35 ET

Advanced Fiber Technologies (AFT) Income Fund Modifies
its Unitholders Rights Plan

LENNOXVILLE, QUEBEC--(CCNMatthews - March 15, 2005) - On September 24,
2004, the Trustees of Advanced Fiber Technologies (AFT) Income Fund
(TSX:AFT.UN) approved the adoption of a Unitholders Rights Plan, subject
to unitholders' approval at AFT's annual and special meeting scheduled
for March 23, 2005. A summary of the Unitholders Rights Plan Agreement
was provided in the management proxy circular forwarded to unitholders
for such upcoming unitholder meeting. Fairvest Corporation has
suggested that AFT make certain modifications to the Plan.

Following discussions with Fairvest Corporation, the Trustees of
Advanced Fiber Technologies (AFT) Income Fund approved certain
modifications to the Plan on March 15, 2005. The modifications do not
change the Plan in a significant manner. Some definitions have been
specified, including the notion of independent unitholder which has been
modified to include pension plans as well as the concept of pro rata
acquisition which has been modified to include a cap on acquisitions
made pursuant to the acquisition or exercise of certain rights.
Further, the obligation to obtain prior unitholder approval with respect
to certain redemption and waiver provisions of the Plan have been added.
Following such modifications, Fairvest Corporation has declared itself
satisfied with the modifications and has issued a recommendation to its
clients to vote in favour of the modified Plan.

The Unitholders of Advanced Fiber Technologies (AFT) Income Fund who
will attend the Unitholders Annual and Special Meeting on March 23, 2005
will receive a copy of the modified Plan and will be asked to vote in
favour of a resolution approving, ratifying and confirming the modified
Plan. All proxies that have been or will be submitted directing to vote
in favour of the Plan will be voted in favour of the modified Plan. A
copy of the modified plan can be found on the website of AFT at the
following address: www.aft-global.com.

About AFT

Advanced Fiber Technologies (AFT) Income Fund is a limited purpose trust
established to hold the securities of Advanced Fiber Technologies (AFT)
Trust. AFT is one of the oldest and largest producers of pulp screening
components, having celebrated its 100th year of operations in March
2003. AFT's product portfolio is comprised of three distinct but
complementary technologies: pulp screening, pulp refining and pulp
dewatering. Pulp screening components are used to separate contaminants
from pulp, a process that is critical to ensuring the quality of the
pulp and the quality of the resulting paper products. Pulp refining is
adjacent to the pulp screening process and is mostly used to enhance
pulp properties. Dewatering is a process used to thicken pulp or to
increase consistency of sludge before disposal.

Forward-looking Information

The statements contained in this news release that are forward-looking
are based on current expectations, and are subject to a number of
uncertainties and risks, and actual results may differ materially. These
uncertainties and risks include, but are not limited to: the dependence
on certain key suppliers, competitive pressures and changes in market
activity, risks associated with international operations and foreign
exchange, legal proceedings, environmental, health and safety and other
regulatory requirements. Further information can be found in the
disclosure documents filed by Advanced Fiber Technologies (AFT) Income
Fund with the securities regulatory authorities, available at
www.sedar.com.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Advanced Fiber Technologies (AFT) Income Fund
    Normand Potvin
    Chief Financial Officer
    (819) 562-4754