YELLOW PAGES INCOME FUND
TSX : YLO.UN

YELLOW PAGES INCOME FUND

June 08, 2006 09:19 ET

Yellow Pages Group Completes the Acquisition of Classified Media (Canada) Holdings Inc.: YPG Creates a Second National Platform

MONTREAL, QUEBEC--(CCNMatthews - June 8, 2006) - Yellow Pages Group (YPG) through Yellow Pages Income Fund (TSX:YLO.UN) announced today that it has completed the purchase of Classified Media (Canada) Holdings Inc. (Trader Canada) from Trader Classified Media N.V. for approximately CDN $760 million paid in cash. The completion of this transaction is in accordance with the terms previously announced.

Trader Canada publishes 137 publications and nine web sites covering three product verticals, namely automotive, real estate and general merchandise. Its main brands include Auto Trader™, Auto Hebdo™, The Bargain Finder™ and Home Renters' Guide™.

By acquiring Trader Canada, YPG creates a second national platform, this time in vertical media by combining its affiliate company Trader Media Corporation (TMC)'s presence in Ontario with that of Trader Canada in the rest of Canada. The combination of Trader Canada and TMC gives YPG a national presence in vertical media with over 200 publications and 20 web sites. The combined business of Trader Canada and TMC has been renamed Trader Corporation following the closing of the transaction.

"This is a great opportunity for us to create a second national platform, this time in vertical media. We are ready and excited to start integrating the Combined Business. It will be our priority over the next 12 to 18 months," said Marc P. Tellier, President and CEO of Yellow Pages Group.

In order to fund the acquisition, YPG entered into credit facilities for a total of $600 million composed of a $350 million 5-year senior term facility and a $250 million 2-year senior term facility. In addition to drawings under these new facilities, YPG used cash on hand for approximately $150 million and issued commercial paper under its existing facility.

About Yellow Pages Income Fund

Yellow Pages Income Fund is an unincorporated, open-ended, limited purpose trust established to invest in Yellow Pages Group. The Fund indirectly holds an approximate 96% ownership interest in Yellow Pages Group.

About Yellow Pages Group

Yellow Pages Group is Canada's largest telephone directories publisher. Yellow Pages Group publishes annually more than 330 Yellow Pages™ and residential directories. The Company owns and manages Canada's most visited online directories YellowPages.ca™, Canada411.ca, as well as the CanadaPlus.ca, a network of seven local city sites. Yellow Pages Group is also a Canadian leader in print and online vertical media through Trader Corporation. For more information about the Company, visit www.ypg.com.

Caution Concerning Forward-Looking Statements

Certain statements in this news release may contain forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements to differ materially from those expressed in the forward-looking statements. Neither Yellow Pages Income Fund nor YPG assume responsibility for the accuracy and completeness of the forward-looking statements and do not undertake any obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

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