September 07, 2005 21:46 ET

TerraVest Income Fund Announces Increase to Exchangeable Share Ratio

VEGREVILLE, ALBERTA--(CCNMatthews - Sept. 7, 2005) - TerraVest Income Fund (TSX:TI.UN) today announced an increase to the Exchange Ratio of the Exchangeable Shares of TerraVest Exchangeco. Inc. from 1.11169 to 1.12097. This increase will be effective September 15, 2005.

The following are the details of the calculation of the Exchange Ratio:

Record Effective
Date of TerraVest Increase Date of Exchange
TerraVest Income Current in Increase Ratio
Income Opening Fund Market Exchange in as of
Fund Exchange Distribution Price Ratio Exchange Effective
Distribution Ratio per Unit of Unit (Note 1) Ratio Date
August 31, September
2005 1.11169 $0.10667 $12.78 .00928 15, 2005 1.12097

Note 1 The increase in the Exchange Ratio is calculated by multiplying
the TerraVest Income Fund Distribution per Unit by the Exchange
Ratio immediately prior to the Record Date and dividing by the
weighted average trading price for the 20 trading day period
ending on the Record Date.

A holder of Exchangeable Shares, Series 1 can exchange all or a portion of their holdings into TerraVest Income Fund Units, at any time, by giving notice and a retraction request to TerraVest Industries Inc. or CIBC Mellon Trust Company at its principal transfer office at 600 The Dome Tower, 333 - 7th Ave SW, Calgary, AB T2P 2Z1.

A holder of Exchangeable Shares, Series 2 will remain subordinated to ordinary units and cannot exchange their holdings until the subordination expires.

TerraVest Income Fund 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. TerraVest has announced that it will acquire up to an 87% interest in Diamond Energy Services Inc., an oil and natural gas well servicing company headquartered in Swift Current, Saskatchewan. The acquisition by TerraVest is subject to approval by Diamond's shareholders at a meeting to be held on September 30, 2005.

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