Armtec Signs Letter of Intent for Joint Venture with South Korean Partner



    Toronto Stock Exchange: ARF.UN

    GUELPH, ON, April 4 /CNW/ - Armtec Infrastructure Income Fund (Armtec)
(TSX: ARF.UN), announced today that it has signed a Letter of Intent with
Fixon Inc. (Fixon) to form a Joint Venture to manufacture Bridge-Plate(R) in
South Korea. Armtec and Fixon will be equal shareholders in the proposed Joint
Venture. Fixon, a corrugated steel pipe manufacturer, is located in Gwangyang
City, South Korea and has been selling Armtec's Bridge-Plate in South Korea
for the past three years. Armtec's capital investment of approximately $2.2
million will largely be applied towards the acquisition of Bridge-Plate
forming machinery, which will be leased to the Joint Venture at market rates.
Completion of the proposed transaction is subject to satisfactory due
diligence and negotiation of legal documentation. The transaction is expected
to close within thirty days.
    "This Joint Venture supports our longer term growth strategy by
establishing operations in a high potential international market. The market
size and demand for bridge structures in South Korea is significant and is
expected to expand due to the unique topography and the continuing development
of the country's road system," said Charles Phillips, President and Chief
Executive Officer of Armtec Limited Partnership. "Fixon and Armtec have
developed a strong relationship based on our focus on product innovation. This
new investment will expand our geographic diversity, a key component of our
long-term strategy. Furthermore, a licensing agreement between Fixon and
Armtec has been proposed to share "technological know-how" between the parties
as part of the transaction. We see this as beneficial to both parties as the
Joint Venture progresses."

    About Fixon Inc.
    Fixon is a manufacturer of corrugated steel products, pipe products and
also produces high density polyethylene laminated steel coil. The operations
are fully established and well-known for providing innovative products to the
marketplace. Fixon has operations in Gwangyang City and maintains a sales
office in Seoul that accommodates Fixon's engineering resources. Management
has been very active in building a design team to capitalize on the growing
number of opportunities in the bridge structure market in South Korea.

    About Armtec Infrastructure Income Fund
    Armtec is a leading manufacturer and marketer of drainage products and
engineered solutions for infrastructure applications in a diverse
cross-section of industries, including the public infrastructure market and
private sector markets such as natural resources, residential drainage and
agricultural drainage in Canada. Armtec is Canada's only national
multi-material manufacturer specializing in corrugated high-density
polyethylene pipe, corrugated steel pipe and related engineered products.
Armtec also distributes a broad range of water control and geosynthetic
products, and manufactures and distributes certain high value-added engineered
products internationally. For further information, please visit Armtec's
website at www.armtecincomefund.com.

    Forward-Looking Statements
    This news release contains forward-looking statements, including the
statements concerning the potential expansion of manufacturing activities and
the market size and demand for bridge structures in South Korea. These
forward-looking statements, are based on current expectations, and are subject
to a number of uncertainties and risks, and the actual results may differ
materially. These statements are based on the following material factors or
assumptions: smooth integration of operations and transition of customers and
suppliers, satisfaction of post-closing covenants contained in the Joint
Venture agreement, and continuing or increased levels of investment in
infrastructure projects in South Korea. The risks and uncertainties which
could cause the actual results to differ materially from such forward-looking
statements include, but are not limited to: relationships with customers and
suppliers, economic and political factors, development of the Korean market
and changes in regulatory matters, the market acceptance and amount of sales
of our products and services, key personnel, and the failure of third parties
to fulfill their obligations or satisfy conditions under contracts.




For further information:

For further information: Charles M. Phillips, President & Chief
Executive Officer, Armtec Limited Partnership, Tel: (519) 822-0210, Fax: (519)
822-8894; R. John Slattery, Sr. VP, Finance & Chief Financial Officer, Armtec
Limited Partnership, Tel: (519) 822-0210, Fax: (519) 822-8894; Danna
Broadworth, Account Executive, BarnesMcInerney Inc., Tel: (416) 367-5000, Fax:
(416) 367-5390

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ARMTEC INFRASTRUCTURE INCOME FUND

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