October 20, 2006 13:31 ET

TerraVest Income Fund Announces October 2006 Distribution

EDMONTON, ALBERTA--(CCNMatthews - Oct. 20, 2006) - TerraVest Income Fund (TSX:TI.UN) announced today that it has declared a cash distribution of $0.115 per Unit, effective with the distribution to be paid on November 15, 2006 to Unitholders of record on October 31, 2006. The ex-distribution date is October 27, 2006.

TerraVest also announced that the Exchange Ratio for the Exchangeable Shares of TerraVest Industries Inc. has increased from 1.27554 to 1.29232, effective October 31, 2006. Further information about TerraVest's exchangeable shares and the calculation of the Exchange Ratio can be found at http://www.terravestindustries.com/invinfo_cash.htm. There are currently 1,411,112 Exchangeable Shares outstanding.

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 to provide its Unitholders with stable and increasing cash returns. TerraVest has made six investments in businesses with proforma total annual revenues approaching $285 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.

Visit us at: www.terravestincomefund.com

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