September 06, 2007 19:00 ET

TerraVest Amends Credit Facility

EDMONTON, ALBERTA--(Marketwire - Sept. 6, 2007) - TerraVest Income Fund (TSX:TI.UN) today announced that it has entered into an agreement with its bank syndicate to amend certain financial covenants contained in its credit facility.

The amendments reflect the Fund's revised business outlook for the remainder of 2007, which forecasts a reduction in cash flows as a result of the current downturn in drilling activities for natural gas in western Canada.

"The amendments are in keeping with the commitment by Management and Trustees to manage the Fund in a prudent and conservative manner," said Tom Kileen, Chief Financial Officer. "The Fund's financial resources are being managed to provide financial flexibility while we await an improvement in the energy market."

About TerraVest Income Fund

The Fund has invested in six businesses:

- RJV is one of the largest providers of wellhead processing equipment for the natural gas industry in western Canada.

- Diamond is a market leader in providing well servicing to the oil and natural gas sector in south-western Saskatchewan, with a growing presence in Alberta.

- Don Park is one of Canada's largest manufacturers and suppliers of heating, ventilation and air conditioning (HVAC) products.

- Stylus is one of Canada's leading made-to-order upholstered furniture manufacturers.

- Beco is the largest Canadian designer, manufacturer and importer of home textile products.

- Ezee-On manufactures heavy-duty equipment for large acreage grain farms and livestock operations.

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