Drive Products Income Fund

Drive Products Income Fund

April 10, 2007 17:02 ET

Drive Products Income Fund Acquires Assets of Two Companies in the East End of Toronto

TORONTO, ONTARIO--(CCNMatthews - April 10, 2007) - Drive Products Income Fund (TSX:DPI.UN) today announced the acquisition of two companies in the east end of Toronto. The Fund has acquired certain assets of 4WD Manufacturing Inc. ("4WD") and the net assets of Dynamic Shaft and Equipment Inc. ("Dynamic").

4WD is a truck upfitter and a lawn and garden equipment sales business located in Scarborough, Ontario and has been in business since 1989. The Fund acquired inventory, fixed assets and goodwill from 4WD for cash consideration of $800,000. Dynamic is a driveshaft repair and replacement business also located in Scarborough, Ontario and has been in business since 1988. The Fund acquired the net assets of Dynamic for cash consideration of $425,000. Both acquisitions will be subject to purchase price adjustments and will be funded from general corporate resources.

"These acquisitions will provide a sales platform of $2 million, permitting Drive Products to open a full service branch in the east end of Toronto", said Greg Edmonds, Chief Executive Officer. "We will now be able to improve our service to our existing customers in the east end of Toronto and capitalize on opportunities with fleets, retail accounts and government agencies that would not normally travel to the west end of Toronto. In addition, the lawn and garden aspect of 4WD will be a good complement to our snow related business since, in most cases, our existing snow removal customers also provide lawn and garden services. The two acquired companies will be merged and ultimately operate out of a single facility in the east end. The acquisitions are expected to be accretive to the distributable cash of the Fund in 2007".

About Drive Products Income Fund

Drive Products Income Fund holds a 54.5% indirect interest in Drive Products. The remaining 45.5% is indirectly held by senior management. Founded in 1983, Drive Products is a Canadian leader in the design and installation of systems solutions that transform a conventional new truck chassis into a specialized vehicle that meets a customer's technical and performance requirements. To achieve this, Drive Products offers a wide variety of products such as power take-offs, hydraulic pumps, motors and coolers, winches, cables and controls, drivelines, blowers and compressors, hoses and fittings, custom consoles, snowplows, spreaders and electronic spreader controls, from leading international manufacturers, in many instances as the sole distributor in Canada.

Forward-Looking Statements

This press release contains forward-looking statements relating to expected future events and financial and operating results of the Fund. These statements involve known and unknown risks and uncertainties. Actual results may differ materially from those anticipated by such forward-looking statements for a variety of reasons, including without limitation, market and general economic conditions and the risks and uncertainties detailed from time to time in the Fund's continuous disclosure documents filed with the Canadian securities regulatory authorities. The Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

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