Front Street Performance Fund
TSX : FSP.UN

Front Street Performance Fund II
TSX : FPF.UN

August 04, 2006 12:57 ET

Front Street Performance Funds: Unitholder Meetings

TORONTO, ONTARIO--(CCNMatthews - Aug. 4, 2006) -

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

Front Street Capital 2004 (the "Manager"), the manager of Front Street Performance Fund (TSX:FSP.UN) ("FSPF I") and Front Street Performance Fund II (TSX:FPF.UN) ("FSPF II"), has announced that at special meetings held today the unitholders of FSPF I and FSPF II (the "Funds") approved extraordinary resolutions to authorize a merger of the Funds. In addition, the unitholders of FSPF II approved an extraordinary resolution to authorize certain other amendments to the trust agreement of FSPF II, as described in the Funds' joint information circular dated June 23, 2006 (the "Circular"). As previously announced, the Manager has determined that it will not proceed with the amendment to the trust agreement of FSPF II authorized by such resolution that would permit the costs of a redemption, including commissions (to a maximum of 1% of the net asset value per unit), to be deducted from the redemption price per unit.

The effective date of the merger is expected to be on or about August 31, 2006, subject to all necessary regulatory approvals being obtained. Complete details of the merger plan are outlined in the Circular (available at www.sedar.com and www.frontstreetcapital.com).

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