Drive Products Income Fund

Drive Products Income Fund

December 18, 2007 14:21 ET

Drive Products Income Fund Acquires W.H. Green Specialties Inc.

TORONTO, ONTARIO--(Marketwire - Dec. 18, 2007) - Drive Products Income Fund (TSX:DPI.UN) today announced that it has entered into an agreement to purchase all of the shares of W.H. Green Specialties Inc. ( for consideration of $1.5 million in cash, with an expected closing date of January 1, 2008. W.H. Green is a distribution company specializing in heat transfer products based in Ontario, Canada. The operating activities of W.H. Green will be integrated into those of the Fund commencing upon closing of the purchase.

W.H. Green specializes in heat exchangers, heat exchanger distributors, air cooled industrial hydraulics, air cooled industrial heat exchangers, water cooled industrial hydraulics, water cooled industrial heat exchangers, mobile hydraulics, mobile heat exchanger, air cooled compressed air, water cooled compressed air, process products, air cooled environmental products and water cooled environmental products. "As the key distributor in Canada for a large international manufacturer of specialty heat exchangers and oil coolers, W.H. Green fits in with our model by having a leading market position in Canada", said Greg Edmonds, Chief Executive Officer. "By leveraging our national network of branches and sales force, we expect to deliver a deeper market penetration for their heat transfer products. In addition, since they were one of our main suppliers for hydraulic cooler sales, we expect we will have a more competitive price in the market".

Based on unaudited financial information and management's due diligence, W.H. Green achieved revenues and normalized EBITDA of $3.8 million and $0.6 million respectively for the fiscal year ended November 2007. The purchase price represented an estimated 2.5 times fiscal 2007 normalized EBITDA and management expects the acquisition to be accretive to the Fund's 2008 financial results.

About Drive Products Income Fund

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. The Fund was created on August 25, 2006 and the Fund's units trade on the Toronto Stock Exchange under the symbol DPI.UN. Drive Products Income Fund holds a 54.5% indirect interest in Drive Products. The remaining 45.5% is indirectly held by senior management.

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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