Somerset Entertainment Income Fund

Somerset Entertainment Income Fund

October 31, 2006 16:00 ET

Somerset Entertainment Compilation Line Moves to In-Line Music Section

TORONTO, ONTARIO--(CCNMatthews - Oct. 31, 2006) -

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Somerset Entertainment (TSX:SOM.UN) announced today that the Compass division's 5 Star Collection music line will move from the endcap of a fixture at the front of the music department to the Various Artists in-line location at 2,500 stores of a major mass merchant customer. This customer has decided to use the endcap location to merchandise new release product. The 5 Star Collection is a series of compilation titles of original artist recordings created and sold exclusively to this mass merchant customer.

Beginning in November 2006, 14 titles will be moved in-line and 10 titles will remain on the endcap fixture. The remaining titles on the endcap will all be 16 track compilations. By April 2007, all 5 Star Collection titles will be moved to the in-line location where sales are typically not as strong as they are on the endcap fixtures. Currently, the retailer intends to return the interactive displays on which the 5 Star Collection is displayed as there is no plan to employ them in the new in-line location.

While determining the new strategy and location for the 5 Star Collection, the retailer has not ordered any product for the past several months. With confirmation of this agreement, Somerset expects orders to resume immediately for new and existing titles. For the six months ended June 30, 2006 the 5 Star Collection represented approximately 10% of total Somerset consolidated sales.

About Somerset Entertainment Income Fund

Somerset is the leading North American producer and distributor of specialty music sold internationally through non-traditional retailers using interactive displays. The company's extensive distribution network includes mass merchants, specialty chains and independent gift stores in more than 20 countries, including the United States and Canada. Based in Toronto, Canada, the company employs over 150 people at offices in Toronto, Ontario (Canada); Buffalo Grove, Illinois, and Minneapolis, Minnesota, (U.S.A.); and Essex, England (UK).

Additional information relating to the Somerset Entertainment Income Fund, including unaudited financial statements as of June 30, 2006 is available at and

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