AG Growth Income Fund
TSX : AFN.UN

AG Growth Income Fund

January 25, 2006 17:27 ET

Ag Growth Income Fund Increases Previously Announced Special Year-End Distribution

ROSENORT, MANITOBA--(CCNMatthews - Jan. 25, 2006) - Ag Growth Income Fund (TSX:AFN.UN) (Ag Growth), today announced an increase in the special year-end distribution previously announced on December 15, 2005. Ag Growth reported its special year-end distribution will be $0.18 per trust unit of Ag Growth and per Class B Exchangeable and Class C Subordinated Exchangeable limited partnership unit of AGX Holdings Limited Partnership, an increase of $0.02 per unit over the $0.16 estimate previously announced. The distribution is payable on January 30, 2006 to holders of the respective units of record on December 30, 2005.

The Fund's Declaration of Trust requires that it distribute all taxable income earned in its fiscal year. A special year-end distribution of $0.18 per unit is necessary to meet this requirement for the year ended December 31, 2005. The $0.18 per unit special distribution announced today is in addition to the special distribution of $0.12 per unit announced in November 2005, bringing total special distributions for 2005 to $0.30 per unit and total distributions for 2005 to $1.7315 per unit.

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 withholding taxes 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. Furthermore, in accordance with the terms of the Fund's prospectus, holders of Class C Subordinated Exchangeable limited partnership units receive distributions quarterly provided the relevant terms of subordination have been met. These terms have been met since inception of the Fund.

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 a special year-end distribution to achieve this requirement. An estimated distribution, if any, will be announced annually in December. The actual amount will be determined as soon as possible after year-end. This distribution will be paid in January to unitholders of record on the last business day in December.

The Fund's Board of Trustees reviews financial performance and other factors when assessing the Fund's monthly distribution levels. An adjustment to monthly 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.

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.

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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