Newport Partners Income Fund
TSX : NPF.UN
TSX : NPF.DB
TSX : NPF.DB.A

Newport Partners Income Fund

July 12, 2010 16:00 ET

Newport Partners Income Fund Amends its Forbearance Agreement

TORONTO, ONTARIO--(Marketwire - July 12, 2010) -

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Newport Partners Income Fund ("NPF" or the "Fund") (TSX:NPF.UN)(TSX:NPF.DB)(TSX:NPF.DB.A) announced today that an amendment to the Forbearance Agreement, dated July 21, 2009, was entered into ("Third Amendment") on July 12, 2010 with the syndicate of lenders ("Lenders") under the Senior Credit Agreement between the Lenders and various of the Fund's subsidiaries.

Under the terms of the Third Amendment, the expiry date has been extended by 90 days. The fund has recently repaid $3.7 million, and has agreed to pay $1.3 million on July 21, 2010 and $15 million by August 31, 2010 and the balance of $112 million and associated fees and costs by October 19, 2010. On execution of this amendment, the interest rate payable on the obligations has increased by 3% per annum and a fee of $1.3 million has been paid. The Fund is actively pursuing asset sales and subsidiary debt refinancings to satisfy its obligations.

The Third Amendment will be available on SEDAR at www.sedar.com.

About Newport Partners Income Fund

Newport Partners Income Fund is an unincorporated, open-ended trust created to hold, through its investment in Newport Partners Commercial Trust, interests in Newport Private Yield LP, a limited partnership established under the laws of the Province of Ontario. NPF began trading on the TSX on August 8, 2005 under the symbol NPF.UN.

Newport Partners Income Fund is a publicly-traded diversified fund that invests in successful Canadian private businesses run by proven entrepreneurs at reasonable prices. The Fund currently has $488 million invested in 15 companies representing a diverse cross-section of the Canadian economy.

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