TERRAVEST INCOME FUND
TSX : TI.UN

TERRAVEST INCOME FUND

June 22, 2005 16:28 ET

TerraVest Income Fund Announces $35.1 Million Public Offering of Trust Units

VEGREVILLE, ALBERTA--(CCNMatthews - June 22, 2005) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

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, 2,200,000 trust units (the "Units") for $13.75 per Unit for gross proceeds of $30,250,000. TerraVest has also granted the underwriters an option to purchase up to an additional 350,000 trust units at the offering price. The option may be exercised at any time up to 48 hours prior to closing. The net proceeds will be used to finance the Fund's acquisition of an 80% interest in its Don Park division and to pay down other outstanding indebtedness of the Fund.

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 July 8, 2005.

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 is an income trust whose units trade on the Toronto Stock Exchange. Its mandate is to invest in a diversified group of income producing businesses. The Fund currently has four operating divisions, RJV, Stylus, Don Park, and Ezee-On. 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. Ezee-On manufactures heavy-duty equipment for large acreage grain farms and livestock operations.

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