Liquor Stores Income Fund
TSX : LIQ.UN

Liquor Stores Income Fund

February 17, 2005 12:31 ET

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

EDMONTON, ALBERTA--(CCNMatthews - Feb. 17, 2005) -

Not for distribution to U.S. newswire services or for dissemination in the U.S.

Liquor Stores Income Fund (the "Fund") (TSX:"LIQ.UN") announced today that it
has agreed to sell 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. The offering is scheduled to close in early March 2005 and is
subject to, amongst other things, approval by the Toronto Stock Exchange. RBC
Capital Markets is acting as the Fund's lead agent in this private placement.

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, as well as 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 new stores is subject to
customary closing conditions and regulatory approvals. Closings are scheduled to
take place during February and 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 49
stores in Alberta and one store in British Columbia, which, with the addition of
the 15 new stores, 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