AG Growth Income Fund
TSX : AFN.UN

AG Growth Income Fund

December 18, 2006 11:08 ET

Ag Growth Income Fund Announces Distribution

WINNIPEG, MANITOBA--(CCNMatthews - Dec. 18, 2006) - Ag Growth Income Fund (TSX:AFN.UN) (Ag Growth), today announced a cash distribution of $0.14 per trust unit of Ag Growth and per Class B exchangeable limited partnership unit of AGX Holdings Limited Partnership for the period commencing December 1, 2006 and ending December 31, 2006. The distribution is payable on January 30, 2007 to holders of trust units of Ag Growth and holders of Class B exchangeable limited partnership units of AGX Holdings Limited Partnership of record on December 29, 2006.

The December distribution announced today brings total monthly distributions for 2006 to $1.68 per unit. In 2005, monthly distributions amounted to $1.43 per unit and the Fund declared two special distributions to bring the total for the year to $1.7315 per unit. The special distributions were made in accordance with the provisions of the Fund's Declaration of Trust, which requires all taxable income of the Fund to be distributed to the unit holders each year. Based on current estimates of the Fund's taxable income, it does not appear that a special distribution will be required for 2006. A revised estimate of taxable income will be prepared subsequent to year-end and, if it is determined a special distribution is required, the distribution will be payable on January 30, 2007 to holders of trust units of Ag Growth and holders of Class B exchangeable limited partnership units of AGX Holdings Limited Partnership of record on December 29, 2006.

Distribution Policy

Ag Growth's policy is to pay cash distributions on or about the 30th of each month to unitholders of record on the last business day of the preceding month. Unitholders who are non-residents of Canada will be required to pay all withholding taxes payable on any distributions by Ag Growth. The Fund's policy is to make monthly distributions to holders of both Fund units and Class B Exchangeable limited partnership units.

The Fund's Board of Trustees reviews financial performance and other factors when assessing the Fund's distribution levels. An adjustment to distribution levels will be made at such time as the Board determines the adjustment is sustainable and in the long-term best interest of the Fund and its unitholders. The Fund's Declaration of Trust requires that it distribute all taxable income earned in its fiscal period ending December 31. It may be necessary for the Fund to estimate one or more special distributions to achieve this requirement.

About Ag Growth Income Fund

Ag Growth is a leading manufacturer and distributor of portable grain handling equipment, including augers, belt conveyors and numerous other grain handling accessories, which are distributed through approximately 1,400 dealers and distributors, in 48 states and nine provinces.

Forward-Looking Statements

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 of Ag Growth Income Fund on the operations and assets currently owned by Ag Growth Industries Limited Partnership, the degree to which Ag Growth Industries Limited Partnership and its affiliates are leveraged, the fact that cash distributions are not guaranteed and will fluctuate with Ag Growth Industries Limited Partnership's financial performance, dilution, restrictions on potential future growth, the risk of unitholder liability, competitive pressures (including price competition), changes in market activity, the cyclicality of the farm equipment industry, seasonality of the business, poor weather conditions, international operations and foreign currency fluctuations, legal proceedings, commodity price and raw material exposure, dependence on key personnel, and environmental, health and safety and other regulatory requirements. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by Ag Growth Income Fund with the securities regulatory authorities, available at www.sedar.com.

Contact Information

  • Ag Growth Income Fund
    Steve Sommerfeld
    Investor Relations
    (204) 489-1855
    Email: steve@aggrowth.com