Strongco Income Fund
TSX : SQP.UN

Strongco Income Fund

February 22, 2008 11:18 ET

Strongco Announces Proposed Acquisition of Champion Road Machinery

MISSISSAUGA, ONTARIO--(Marketwire - Feb. 22, 2008) - Strongco Income fund (TSX:SQP.UN): Strongco Income Fund (the "Fund") announced that the trustees of the Fund approved, in principle, the acquisition by Strongco Limited Partnership (the operating subsidiary of the Fund) of substantially all of the assets (excluding real property) of the Champion Road Machinery division (the "Champion Business") of Volvo Group Canada Inc. ("Volvo"). The purchase price payable for the Champion Business is expected to be approximately $30 million of which approximately $6 million would be paid in cash and the balance by the assumption of certain liabilities relating to the business. Closing of the transaction is expected to occur in early March, 2008.

The Champion Business provides full service sales, rentals, parts and service for the Volvo Motor Grader line in Ontario. In addition to graders, the Champion Business carries the Volvo Compact line in Ontario as well as Hamm and Super Pac compaction, ProPav pavers and Johnston sweepers and Frink plow equipment.

Robin MacLean, President commented, "We are excited about this opportunity and look forward to expanding our Volvo product offerings. We look forward to completing successful due diligence and closing this transaction."

Completion of the transaction between Strongco and Volvo is subject to a number of conditions including, without limitation, satisfactory results of a due diligence review being undertaken by Strongco, the negotiation of a definitive purchase agreement, and completion of financing by Strongco. There can be no assurance that the transaction will be completed or that the transaction will be completed on the terms described above.

All statements contained in this press release that do no directly and exclusively relate to historical facts constitute forward-looking statements as of the date of this press release. These forward-looking statements include statements concerning or presuming the completion of the acquisition of the Champion Business by Strongco, including the expected closing date. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur.

By their nature forward-looking statements require assumptions and are subject to inherent risks and uncertainties, including those discussed herein. There is significant risk that forward-looking statements will not prove to be accurate. You are cautioned not to place undue reliance on forward-looking statements made herein because a number of factors could cause actual future results, conditions, actions or events to differ materially from the plans, intentions or expectations expressed in the forward-looking statements.

The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: the results of the due diligence review of the Champion Business being undertaken by Strongco; negotiation and execution of a purchase agreement which is satisfactory to Strongco; completion of financing by Strongco on terms which are satisfactory to Strongco; and various risks relating to the Champion Business acquisition, including risks relating to integration and realization of expected synergies, reliance on key personnel of the Champion Business, and potential undisclosed liabilities associated with the Champion Business. You are cautioned that the foregoing list of factors is not exhaustive and that when relying on forward-looking statements to make decisions with respect to the Fund, investors should carefully consider these factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements.

The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The Fund undertakes no obligation to publicly update or revise any forward-looking statements except as required by applicable securities law.

Risks related to the Fund have been summarized in the Fund's latest Annual Information Form, Management's Discussion and Analysis included in the Annual Report and quarterly financial reports available on www.sedar.com or the Fund's web site at www.strongco.com.

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