Wajax Limited

Wajax Limited

June 06, 2005 11:56 ET

Wajax Shareholders Approve Conversion To Income Fund

TORONTO, ONTARIO--(CCNMatthews - June 6, 2005) - Wajax Limited ("Wajax")(TSX:WJX) announced that at a special shareholders' meeting today, shareholders overwhelmingly approved the plan of arrangement which will result in the conversion of Wajax from a corporate entity into an income fund.

Subject to certain regulatory approvals and the final approval of the Ontario Superior Court of Justice, it is anticipated the plan of arrangement will be completed on June 15, 2005 and that shareholders will then receive one unit of Wajax Income Fund (the "Fund") for every Wajax share held. The TSX has conditionally approved the listing of the units under the symbol "WJX.UN". Units are expected to commence trading on or about June 15, 2005 subject to the Fund fulfilling the requirements of the Exchange.

As previously announced, it is expected the Fund will make its first distribution on August 22, 2005 relating to the period from completion of the plan of arrangement to July 31, 2005. It is expected that the Fund will have an initial annual distribution of $2.20 per Unit.

The costs of the conversion transaction will be reflected in the Fund's reporting of results for the quarter ended June 30, 2005. Results are expected to be released on August 9, 2005.

Wajax is a diversified company that has three core distribution businesses engaged in the sale and after-sales parts and service support of mobile equipment, diesel engines and industrial components, through a network of over 100 branches across Canada and the western United States. Its customer base spans natural resources, construction, transportation, manufacturing, industrial processing and utilities.

This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Wajax. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and Wajax does not assume any obligation to update or revise them to reflect new events or circumstances.

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