IBI Income Fund

IBI Income Fund

March 22, 2005 16:38 ET

IBI Income Fund Declares Its Monthly Cash Distribution To Unitholders




MARCH 22, 2005 - 16:38 ET

IBI Income Fund Declares Its Monthly Cash Distribution
To Unitholders

TORONTO, ONTARIO--(CCNMatthews - March 22, 2005) - IBI Income Fund (the
"Fund") (TSX:IBG.UN) today declared a cash distribution of $0.09375 per
Fund Unit for the month of March 2005, payable April 29, 2005 to
unitholders of record on March 31, 2005.

The Fund also announced that IBI Group Management Partnership will
receive a distribution of $0.16875 per Class B Unit held by it in IBI
Group, payable on April 29, 2005. This per Class B Unit distribution
includes the distribution entitlement for the month of March 2005 plus
an additional equalizing distribution for the fiscal quarter so that the
distributions per Class B Units for the fiscal quarter ending March 31,
2005 will be the same as the distributions per Fund Unit for the quarter
(the rights to equalizing distributions are more fully described below).
As more fully described below, IBI Group is the partnership through
which the professional services business of the Fund is (through the
operating entities owned by IBI Group) carried out, and through which
management of such business holds their retained ownership interest.


The Fund holds an indirect 50% interest in IBI Group, a partnership
which provides professional services, including planning, design,
implementation, analysis of operations and other consulting services in
relation to four main areas of development, being urban land, building
facilities, transportation networks and systems technology. The
remaining 50% of IBI Group is owned by IBI Group Management Partnership.

There are currently outstanding 5,025,778 Fund Units and 5,025,778 Class
B Units. All Class B Units are owned by IBI Group Management Partnership.

Under the constating documents of the Fund and IBI Group, the Class B
Units of IBI Group (which are all held by the IBI Group Management
Partnership) entitle the holder to monthly distributions per unit equal
to 60% of the distributions on the Class A Units of IBI Group (which are
the units indirectly held by the Fund). At the end of each fiscal
quarter, so long as distributions on the Fund Units to date during the
subject fiscal year have met the targeted distribution level of $0.09375
per month, and IBI Group is otherwise able to do so, the holder of the
Class B Units will be entitled to an additional equalizing distribution.

These arrangements for certain preferred distribution rights for the
Fund's public unitholders are to continue until at least early 2007
(when the audited financial statements for the fiscal year ending
December 31, 2006 are completed). Specifically, these arrangements will
continue until the completion of audited financial statements for a
fiscal year (ending December 31, 2006 or later) in which (i) average
monthly distributions on Fund Units (on a diluted basis as if the Class
B Units of IBI Group had been exchanged for Fund Units) were at least
$0.09375 per unit and (ii) the Fund earned EBITDA of at least $14.242
million. After this condition is met, Class B Units of IBI Group will
also be exchangeable, on a one-for-one basis, for Fund Units.

The Fund is a TSX listed income trust, which pays monthly distributions
and trades under the symbol "IBG.UN". Holders of units who are
non-residents of Canada will be required to pay all withholding taxes
payable in respect of any distributions of income by the Fund.


Contact Information

    IBI Income Fund
    Allan J. Kamerman
    (416) 596-1930
    (416) 596-0644 (FAX)