Spinrite Income Fund

Spinrite Income Fund

November 14, 2007 15:39 ET

Unitholders of Spinrite Income Fund Approve the Sale of Substantially All of the Assets of the Fund and Termination of the Fund at a Special Meeting

TORONTO, ONTARIO--(Marketwire - Nov. 14, 2007) - Spinrite Income Fund (TSX:SNF.UN) announced the adoption by unitholders, by more than 95.35% of the votes cast at the special meeting held earlier today, of a special resolution approving (i) the sale of substantially all of the assets of the Fund to Spinrite Acquisition Corp., a company indirectly controlled by entities managed by Sentinel Capital Partners L.L.C., and (ii) amendments to the Fund's amended and restated declaration of trust to (a) provide for the redemption of units held by unitholders for cash consideration equal to $2.25 per unit and (b) allow for the termination of the Fund by its trustees, all as more fully described in the meeting materials.

The Fund announced that it expects the transaction to close on our about November 16, 2007, with the trading of the units to be halted, and then redeemed, on or about November 21, 2007 at which time the redemption proceeds of $2.25 per unit will be paid to unitholders.

About Spinrite Income Fund

Spinrite Income Fund is the largest producer and manufacturer of craft yarn in Canada and one of the largest in the United States. Established in 1952, Spinrite researches, develops, manufactures and markets a broad variety of consumer craft yarns. The company also supports its market with patterns that provide customers with creative ideas for knitted products. Spinrite has approximately 450 employees at its fully integrated manufacturing and distribution centre in Listowel, Ontario.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events financial and operating results of the Fund that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed from time to time in the Fund's annual information form filed with Canadian securities regulatory authorities. Due to the potential impact of these factors, the Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

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