PRT Forest Regeneration Income Fund
TSX : PRT.UN

PRT Forest Regeneration Income Fund

April 30, 2007 08:09 ET

Trustees of PRT Forest Regeneration Income Fund Retain CIBC World Markets as Financial Advisor

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 30, 2007) - PRT Forest Regeneration Income Fund ("PRT" or the "Fund") (TSX:PRT.UN) announced today that it has retained CIBC World Markets Inc. ("CIBC World Markets") to assist the Fund's Board of Trustees (the "Trustees") in responding to the proposal by C.A. Bancorp to acquire a significant interest in PRT Management Inc. ("PMI"), the manager of PRT, and to shift the strategic direction of the Fund towards a rapid growth-by-diversification strategy. CIBC World Markets has been engaged to assist the Trustees in assessing the Bancorp proposal and in communicating with Unitholders, and to act generally as financial advisor to the Fund and its Trustees. If re-elected at the Fund's upcoming Annual General Meeting, which has been rescheduled to June 26, 2007, the Trustees intend to further engage CIBC World Markets to conduct a full evaluation of the strategic opportunities available to the Fund to maximize and enhance Unitholder value, including the possible sale of PRT.

On March 26, 2007, PMI advised the Trustees of the Bancorp proposal and also advised it had the support of two of the Fund's substantial Unitholders. Accordingly, it requested the Trustees to step down at the Annual General Meeting in favour of a new slate of trustees to be chosen by PMI and Bancorp which, the Trustees believe, would be more supportive of the Bancorp proposal.

The Trustees are of the view, concurred in by counsel, that where a marked divergence in Fund strategy is proposed, the decision to undertake it should be made by a fully informed vote of the Unitholders. They will have the opportunity to do so at the Annual General Meeting by either voting for the current Trustees or voting for an alternative slate to be nominated by PMI and Bancorp.

A detailed assessment of the factors that the Trustees consider relevant to a Unitholder's decision will be included in the Fund's proxy circular that is expected to be published in mid-May.

The Trustees, although supportive of the Fund's current strategy of focusing on stable distributions and growth within the forest seedling sector, are also open to a consideration of such other strategic alternatives to increasing Unitholder value as may be reasonably available to the Fund. The Trustees will oversee this strategic review process and, if appropriate, will make recommendations to Unitholders. As part of this broader process, the Trustees are prepared to consider a more detailed proposal from Bancorp and weigh its benefits along with other alternatives identified in an appropriately thorough and timely evaluation process. To date, and for the reasons outlined in the letter to Unitholders dated April 16, 2007, the Trustees have not been prepared to support the adoption of a diversification strategy for the Fund. No timetable has been set for completion of the strategic review, and there can be no assurance that this process will result in any strategic or financial transaction.

About PRT Forest Regeneration Income Fund

The Fund is an open ended, single purpose trust created to own all the common shares and subordinated notes of Pacific Regeneration Technologies Inc. PRT is the largest producer of container grown forest seedlings in North America, operating 15 nurseries in Canada and the USA. The Fund's units are listed for trading on the Toronto Stock Exchange under the symbol PRT.UN.

Forward-Looking Statements

This news release contains forward-looking statements or information within the meaning of applicable securities laws in Canada (collectively referred to as "forward-looking statements"). Statements, other than statements of historical fact, are forward-looking statements and include, without limitation, statements regarding the Fund's strategy, future operations, prospects and plans and objectives of the Trustees or of management. The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify forward-looking statements, which include underlying assumptions, although not all forward-looking statements contain these identifying words. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other things contemplated by the forward-looking statements will not occur.

Forward-looking statements in this news release include, but are not limited to, statements about: the Trustees' intent, upon re-election, to engage CIBC World Markets to assist them in evaluating a range of strategic opportunities to maximize or enhance Unitholder value; or the Fund potentially entering into a transaction designed to maximize or enhance Unitholder value (a "potential transaction").

Forward-looking statements in this news release are based on the opinions and estimates of the Trustees or of the other parties to which they are attributed at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the forest seedling business and in a shift in the strategic focus of the Fund, including a shift to a more aggressive growth-through-diversification strategy, and in the ability of CIBC World Markets to assist the Trustees in evaluating a range of strategic opportunities to maximize or enhance Unitholder value. There are no assurances that a transaction will be consummated or that, if completed, such transaction will be accretive to Unitholders. Risks applicable to the Fund and its operations are disclosed in the MD&A portion of the annual reports filed by the Fund with the relevant securities regulators.

Although the Fund has attempted to identify the forward-looking statements, the underlying assumptions, and the risks, uncertainties and other factors that could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements, there may be other factors that cause actual results or events to differ from those expressed or implied in the forward-looking statements. The Fund undertakes no obligation to revise or update any forward-looking statements as a result of new information, future events or otherwise, after the date hereof, except as may be required by law.

Contact Information