American Income Trust

American Income Trust

March 30, 2006 09:00 ET

Unitholder Meeting-American Income

TORONTO, ONTARIO--(CCNMatthews - March 30, 2006) - AMERICAN INCOME TRUST ("AMERICAN INCOME") announced today that a special meeting of unitholders has been called for Thursday, April 20, 2006. At the meeting, unitholders will be asked to consider and vote upon a special resolution to allow American Income to merge into Income Financial, a fund which is also managed by the Manager.

Income Financial, which is a fund focused on Canadian and U.S. financial services companies, has paid annualized distributions of 9.24% (based on original issue price) to unitholders since its inception on February 4, 1999 to December 31, 2005. Income Financial had a net asset value per unit of $21.99 and its net assets were $162.8 million as at March 15, 2006.

The Manager believes that the current net asset level of American Income ($26.4 million as at March 15, 2006) make it appropriate for unitholders to consider a merger proposal with a larger Fund.

The reasons for the merger proposal and the potential benefits are as follows:

- Lower operating costs as a result of the elimination of the duplication of certain third party costs such as transfer agents fees, audit fees, legal fees, exchange listing fees, printing costs, mailing and reporting costs for each Fund

- Income Financial will have a lower management expense ratio than American Income

- Income Financial has a higher current distribution pay-out than American Income

- Income Financial has exceeded its distribution objectives and produced a higher total return compared to American Income

- Income Financial has the ability to invest in both Canadian and U.S. financial services stocks thus providing greater investment flexibility for decreasing U.S. foreign exchange exposure as compared to American Income

- Larger market capitalization of Income Financial should provide an increase in liquidity of units on the TSX

The effective date of the Merger, if approved, and subject to the receipt of all required regulatory approvals, is expected to be on or about May 1, 2006. American Income unitholders, under the proposal, would have their American Income units redeemed and then receive the applicable number of Income Financial units based on the relative net asset value per unit of each Fund immediately prior to the completion of the Merger.

Complete details of the proposal will be outlined in an Information Circular to be sent on March 30, 2006 to American Income unitholders of record on March 21, 2006 (also available at and by March 31, 2006).

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