Front Street Long/Short Income Fund

Front Street Long/Short Income Fund
Front Street Opportunity Funds Ltd.

August 10, 2007 15:30 ET

Front Street Long/Short Income Fund and Front Street Opportunity Funds Ltd. Announce Completion of Merger

TORONTO, ONTARIO--(Marketwire - Aug. 10, 2007) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER U.S. WIRE SERVICES

Front Street Capital 2004, the manager of Front Street Long/Short Income Fund ("Long/Short Fund") and Front Street Opportunity Funds Ltd. ("Opportunity Fund"), announced today that the merger of Long/Short Fund and Opportunity Fund was completed on August 9, 2007 (the "Merger"). As a result of the Merger, the units of Long/Short Fund were de-listed from the TSX following the close of trading on August 9, 2007.

Each unitholder of Long/Short Fund received one Series B share of the Front Street Yield Opportunities Fund class of shares of Opportunity Fund (the "Shares") for each unit of the Long/Short Fund held immediately prior to the completion of the Merger. Such Shares were issued at a price of $9.4996, which was the net asset value of a unit of the Long/Short Fund as at such date, calculated after the payment of the special distribution discussed below.

In connection with the Merger, a special distribution of $0.58477 per unit was paid to unitholders of record of the Long/Short Fund on August 8, 2007. Such distribution was in addition to the previously announced regular monthly distribution of $0.05 per unit payable on or about August 15, 2007 to unitholders of the Long/Short Fund of record on July 31, 2007. This special distribution was applied to the purchase of additional units of the Long/Short Fund, except in respect of those unitholders who elected to receive such distribution in cash. Units issued in respect of this special distribution were issued prior to completion of the Merger and therefore resulted in unitholders being issued an equivalent number of Shares in the Merger. Cash distributions to those unitholders who elected cash will be paid on or about August 15, 2007.

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