Drive Products Income Fund
TSX : DPI.UN

Drive Products Income Fund

November 13, 2006 14:09 ET

Drive Products Income Fund Announces Third Quarter 2006 Financial Results

HIGHLIGHTS FOR THE QUARTER: · Revenue up almost 24%; · EBITDA up approximately 20%; · Strong distributable cash for the period with a payout ratio of 86%;

TORONTO, ONTARIO--(CCNMatthews - Nov. 13, 2006) - Drive Products Income Fund (TSX:DPI.UN) today announced its financial results for the third quarter ending September 30, 2006. The Fund commenced operations on August 25, 2006 when it completed its initial public offering ("IPO"). Therefore, the Fund's results of operations included in the interim financial statements cover the thirty seven day period from August 25, 2006 to September 30, 2006. For comparative purposes, the pre-IPO results of Drive Products for the period from July 1, 2006 to August 24, 2006 have been combined with the results of the Fund for the subsequent thirty seven day period to September 30, 2006.

Revenue for the combined three month period ended September 30, 2006 was $25.6 million, an increase of 23.7% from $20.7 million in the comparable period in 2005. The increased revenues were primarily driven from the increased economic activity in Western Canada, particularly northern Alberta in the petroleum extraction and refining sectors. 64% of the growth was derived from existing customers and the remainder from new customers and recently acquired businesses..

"We are pleased with the results for the initial period of the Fund", said Greg Edmonds, Chief Executive Officer. "From an operations point of view, revenues are at record levels, EBITDA is strong and our payout ratio is ahead of the projected amount in the prospectus. The Fund is also operating with no long-term bank debt. Senior management has retained a 45.5% interest in the Fund, so our economic interests are aligned with those of the public unitholders".

EBITDA(1) for the three month period ended September 30, 2006 was $4.8 million, an increase of 20% from $4.0 million in the comparable period in 2005. Strong earnings have fuelled the increase. Distributable cash(1) for the initial period from August 25, 2006 to September 30, 2006 was $1.8 million or $0.1311 per unit compared to distributions declared of $1.6 million or $0.1124. The Fund intends to declare regular monthly cash distributions of $0.0917 per unit ($1.10 per unit on an annual basis), consistent with the level of cash distributions outlined in the final prospectus. The payout ratio(4) for the initial period was 85.7% compared to 90% projected in the prospectus.



Summary of results:
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Drive Products Drive
Income Fund Products Drive
Thirty seven Fifty five Combined Products
day day Three month Three month
Unaudited period ended period ended period ended period ended
($ thousands except September 30 August 24(1) September 30 September 30(1)
per unit figures) 2006 2006 2006 2005
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$ $ $ $

Sales 11,028 14,616 25,644 20,698
Cost of Sales
and General and
Administrative 9,151 11,735 20,886 16,724
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EBITDA(2) 1,877 2,881 4,758 3,974
Amortization 1,515 223 1,738 337
Interest (income)
expense (2) 66 64 176
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Net earnings 364 2,592 2,956 3,461
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Distributable
cash(2) 1,833
Distributable
cash declared 1,571
Distributable
cash per unit 0.1311
Distributions
declared per unit 0.1124
Payout ratio 85.7%
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(1) Results for all periods prior to August 25, 2006 are based on unaudited
results as presented in internally prepared financial statements.

(2) EBITDA and distributable cash are non-GAAP measure. See "Non-GAAP
Measures" for definitions.

(3) For purposes of calculating the average number of units outstanding,
both Trust units and exchangeable Class B units have been combined.

(4) The payout ratio is defined as the cash distributions declared as a
percentage of distributable cash.


Third Quarter Report

The third quarter report is available on the Fund's website at www.driveproducts.com and at www.sedar.com.

Drive Products will hold a conference call to discuss these financial results on November 14, 2006 at 10:00 am (Eastern).

Available on the call to answer questions will be Greg Edmonds, Chief Executive Officer and Chris Boudreau, Chief Financial Officer.

To participate in the conference call, please dial 416-695-9700 or 1-888-789-0089.

An archived recording of the call will be available at 416-695-5275 or 1-888-509-0081 (Passcode ID 634991) from two hours after the completion of the call to midnight November 28, 2006.

(1) Non-GAAP Measures

EBITDA and distributable cash are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP. Therefore, EBITDA, and distributable cash may not be comparable to similarly titled measures presented by other issuers. Investors are cautioned that EBITDA and distributable cash should not be construed as an alternative to net income or loss determined in accordance with GAAP as indicators of the Fund's performance or to cash flows from operating, investing and financing activities as measures of liquidity and cash flows. References to EBITDA are to net earnings adjusted to exclude income taxes, gains or losses on disposal of capital assets, amortization of capital assets and intangible assets, and interest expense. References to distributable cash are to EBITDA, adjusted for maintenance capital expenditures and other adjustments listed in the reconciliation provided.

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 PTOs, 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 risks and uncertainties. Actual results may differ materially from those anticipated by such forward-looking statements for a variety of reasons, including 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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