April 05, 2006 15:46 ET

TerraVest Income Fund Announces $30.2 Million Public Offering of Trust Units

VEGREVILLE, ALBERTA--(CCNMatthews - April 5, 2006) -


TerraVest Income Fund (TSX:TI.UN) announced today that it has reached an agreement with a syndicate of underwriters led by RBC Capital Markets to issue to the public, subject to regulatory approval, 2,600,000 trust units (the "Units") for $11.60 per Unit for gross proceeds of $30,160,000. TerraVest has also granted the underwriters an option to purchase up to an additional 390,000 trust units at the offering price. The option may be exercised at any time up to 48 hours prior to closing. The net proceeds of the Offering will be used to pay down outstanding indebtedness of the Fund related to the recent acquisitions of Beco Industries and Diamond Energy Services.

TerraVest will file a preliminary short form prospectus relating to the issuance of the Units with securities commissions and other similar regulatory authorities in each of the provinces and territories of Canada. Closing of the offering is expected to take place on or about April 21, 2006.

This news release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Units being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the Units may not be offered or sold to any U.S. person except pursuant to applicable exemptions from registration.

TerraVest Income Fund is an income trust whose Units trade on the Toronto Stock Exchange. TerraVest has increased the rate of its annual distribution by a total of 30% since commencing operations 21 months ago in July 2004 and in 2005 had a payout ratio of 93%. TerraVest's mandate is to invest in a diversified group of income producing businesses to provide its Unitholders with stable and increasing cash returns.

TerraVest has made six investments in companies with total annual revenues of approximately $280 million:

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

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

- Don Park is the largest fabricator and wholesaler of HVAC ducts and related equipment in Ontario.

- Diamond Energy Services is an oil and natural gas well servicing company operating in Saskatchewan and Alberta.

- Beco Industries 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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