AG Growth Income Fund

AG Growth Income Fund

March 21, 2005 16:38 ET

Ag Growth Income Fund Announces Distributions


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: AG GROWTH INCOME FUND

TSX SYMBOL: AFN.UN

MARCH 21, 2005 - 16:38 ET

Ag Growth Income Fund Announces Distributions

ROSENORT, MANITOBA--(CCNMatthews - March 21, 2005) - Ag Growth Income
Fund (TSX:AFN.UN) (Ag Growth), a manufacturer of portable grain handling
equipment, today announced a regular monthly cash distribution of
$0.1083 per trust unit of Ag Growth and per Class B exchangeable limited
partnership unit of AGX Holdings Limited Partnership for the period
commencing March 1, 2005 and ending March 31, 2005. The distribution is
payable on April 29, 2005 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 March 31, 2005.

Ag Growth also announced today a distribution to holders of record on
March 31, 2005 of Class C subordinated limited partnership units in AGX
Holdings Limited Partnership of $0.3249 per unit for the three-month
period from January 1, 2005 to March 31, 2005. Distributions to holders
of Class C subordinated units are made quarterly as per the terms
outlined in Ag Growth's final prospectus.

Additionally, Ag Growth announced a second special distribution of
$0.068 per trust unit of Ag Growth, per Class B exchangeable limited
partnership unit of AGX Holdings Limited Partnership, and per Class C
subordinated limited partnership unit of AGX Holdings Limited
Partnership. The distribution is payable on April 29, 2005 to holders of
the respective units of record on March 31, 2005.

The Fund effectively commenced operations on May 18, 2004. Accordingly,
results for the period ended December 31, 2004 include the Fund's third
quarter, historically its strongest. As a result of this timing and the
strong financial results achieved by Ag Growth, income for the period
ended December 31, 2004 is proportionally higher than would be typical
for a full twelve-month period. Accordingly, a special distribution was
required to allow the Fund to distribute all of its taxable income for
the period. The special distribution announced on December 17, 2004
represented the estimated distribution required to allow the Fund to
distribute all of its estimated taxable income for its initial fiscal
period. Upon completion of the fiscal period and the preparation of the
related tax calculations, it was determined that an additional special
distribution was required.

The circumstances leading to the special year-end distributions are not
expected to impact Ag Growth's regular distribution policy. Regular
monthly distributions will be made on or about the 30th of each month to
unitholders of record on the last business day of the previous month.
Since its initial public offering, Ag Growth has paid monthly
distributions consistent with its initial public offering document.
Unitholders who are non-residents of Canada will be required to pay all
withholding taxes payable on any distributions by Ag Growth.

About Ag Growth Income Fund

Ag Growth is a leading manufacturer of portable grain handling equipment
including augers, belt conveyors and numerous other grain handling
accessories. Ag Growth has a leading North American sales, marketing and
distribution system within the short-line farm equipment industry,
including approximately 1,400 dealers and distributors, in 48 states and
nine provinces.

Non-GAAP measures

References to "EBITDA" are to earnings before interest, income taxes,
depreciation, and amortization. Management believes that, in addition to
net income or loss, EBITDA is a useful supplemental measure in
evaluating its performance. Specifically, management believes that
EBITDA is the appropriate measure from which to make adjustments to
determine the Fund's distributable cash. EBITDA is not a financial
measure recognized by Canadian generally accepted accounting principles
("GAAP") and does not have a standardized meaning prescribed by GAAP.
Management cautions investors that EBITDA should not replace net income
or loss as an indicator of performance, or cash flows from operating,
investing, and financing activities as a measure of the Fund's liquidity
and cash flows. The Fund's method of calculating EBITDA may differ from
the methods used by other issuers.

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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Ag Growth Income Fund
    Rob Stenson
    Investor Relations
    (204) 746-2396
    Email: robstenson@aggrowth.com