April 03, 2008 08:19 ET

Aeroplan's wholly-owned subsidiary LMG continues VAT appeal

    MONTREAL, and LONDON, United Kingdom, April 3  - Aeroplan
Income Fund's (Aeroplan) (TSX: AER.UN) wholly-owned subsidiary, Loyalty
Management Group Limited (LMG), owner and operator of Nectar, today announced
that HM Revenue & Customs' (HMRC) application for leave to appeal the decision
in relation to the VAT treatment of Nectar to the House of Lords has been
granted and the case has been referred to the European Court of Justice. The
case will be heard at a future date to be set. LMG will continue to argue this
case. Aeroplan remains confident that this case will be resolved to the
company's satisfaction.


    Certain statements in this news release may contain forward-looking
statements. These forward-looking statements are identified by the use of
terms and phrases such as "anticipate", "believe", "could", "estimate",
"expect", "intend", "may", "plan", "predict", "project", "will", "would", and
similar terms and phrases, including references to assumptions. Such
statements may involve but are not limited to comments with respect to
strategies, expectations, planned operations or future actions.
Forward-looking statements, by their nature, are based on assumptions and are
subject to important risks and uncertainties. Any forecasts or forward-looking
predictions or statements cannot be relied upon due to, amongst other things,
changing external events, general uncertainties of the business and matters
that are not within the control of Aeroplan. Such statements involve known and
unknown risks, uncertainties and other factors that may cause the actual
results, performance or achievements to differ materially from those expressed
in the forward-looking statements. The forward-looking statements contained
herein represent Aeroplan's expectations as of the date they are made and are
subject to change after such date. However, Aeroplan disclaims any intention
or obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as required
under applicable securities regulations.

    About Aeroplan Income Fund

    Aeroplan Income Fund is an unincorporated, open-ended trust established
under the laws of the Province of Ontario. Aeroplan Income Fund is the owner
of Aeroplan Limited Partnership, Canada's premier loyalty marketing company
and operator of the Aeroplan loyalty program and Loyalty Management Group
Limited, operator of Nectar, the United Kingdom's leading coalition loyalty
    For more information about Aeroplan, please visit

    About LMG

    LMG is based in the United Kingdom and develops, owns and manages large
retail-based coalition loyalty programs and provides customer data driven
marketing services to retailers, CPGs and service providers worldwide. The
group owns and operates the Nectar brand, the United Kingdom's leading
coalition loyalty program. It also majority owns the Air Miles programme in
the Middle East as well as owning the Air Miles trademark around the world. It
employs approximately 190 staff at its HQ in London.
    For more information about LMG, please visit

    About Nectar

    Nectar is the UK's leading coalition loyalty program with multiple
partners representing grocery, fuel, energy, entertainment and credit card
sectors. 50% of UK households participate in the program and 19 Nectar cards
are swiped every second of every day. Nectar has given back over (pnds
stlg)1 billion worth of rewards to its collectors since its launch in
September 2002.

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