Liquor Stores Income Fund
TSX : LIQ.UN

Liquor Stores Income Fund

March 02, 2005 12:12 ET

Liquor Stores Income Fund Closes $30 Million Private Placement of Trust Units

EDMONTON, ALBERTA--(CCNMatthews - March 2, 2005) - NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE U.S. Liquor Stores Income Fund (TSX:LIQ.UN) (the "Fund") announced today that it has closed its
previously announced private placement of 1,830,000 trust units of the Fund at a price of $16.40
per trust unit. The gross proceeds of approximately $30 million will be used to fund the
previously announced addition of 15 new stores, to repay existing indebtedness and for general
corporate purposes including potential future acquisitions. RBC Capital Markets acted as lead agent
for a syndicate that included TD Securities Inc., Canaccord Capital Corporation, HSBC
Securities (Canada) Inc. and Raymond James Ltd.

On February 14, 2005, the Fund announced the planned acquisition of 13 additional liquor stores in
Alberta and the development of two additional stores in British Columbia. In Alberta, the Fund will be
acquiring all 10 of the stores operated by the Last Call Group and has completed the
acquisition of three independently owned and operated stores. The Last Call Group is the fourth
largest independent chain of liquor stores in Alberta. The acquisition of the Last Call Group stores
is subject to customary closing conditions and regulatory approvals. The closings of the
Last Call Group stores are scheduled to take place during March 2005. The stores located in
British Columbia are expected to open in March 2005. The total cost to the Fund of the 15
additional stores will be approximately $11.1 million, not including inventory.

The Fund has also previously announced that, subject to the closing of the Last Call acquisitions,
it intends to increase its annual distribution by $0.075 per unit from $1.00 to $1.075 ($0.08958
per month), commencing with the distribution to be paid to unitholders of record on May
31, 2005. The increase in unitholder distributions is due to the continued strong financial
performance of the Fund's current business and the accretive nature of the acquisitions.

The Fund is an open-ended trust that holds, indirectly, securities of Liquor Stores Limited
Partnership ("Liquor Stores LP"). Liquor Stores LP is Alberta's largest liquor store operator, by
number of stores, and currently operates 52 stores in Alberta and one store in British Columbia,
which, with the addition of the 10 Last Call Group stores and the 2 new stores in British Columbia,
will increase to 62 stores in Alberta and three in British Columbia. The trust units
of the Fund trade on the Toronto Stock Exchange under the symbol "LIQ.UN".

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of
the trust units in the United States. The trust units have not been and will not be registered under
the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any
state securities laws and may not be offered or sold within the United States or to U.S. persons
unless registered under the U.S. Securities Act and applicable state securities laws or an exemption
from such registration is available.

Additional information about Liquor Stores Income Fund is available at www.sedar.com.

Disclaimer

Certain statements in this news release are "forward-looking statements", which reflect
management's expectations regarding the future growth, proposed acquisitions, results of operations,
performance, business prospects, opportunities and the amount and timing of the
payment of distributions of the Fund. All statements other than statements of historical fact
contained in this news release are forward-looking statements. Such forward-looking statements
involve risks and uncertainties, as they reflect management's current beliefs and are based on
information currently available to management. Actual results may differ materially from those
anticipated in the statements made. The forward-looking statements are expressly qualified in their
entirety by this cautionary statement. The forward-looking statements are made as of the
date of this news release and the Fund assumes no obligation to update or revise them to reflect new
events or circumstances. Further information regarding the uncertainties and risks can be
found in the disclosure documents filed by the Fund with the securities regulatory authorities,
available at www.sedar.com.

Contact Information

  • Liquor Stores GP Inc.
    Irv Kipnes
    Chief Executive Officer
    (780) 944-9994 ext. 6

    or

    Liquor Stores GP Inc.
    Tom Orysiuk
    Chief Financial Officer
    (780) 917-4179