Carfinco Announces Closing of Equity Financing



    /NOT FOR DISTRIBUTION TO UNITED STATES OF AMERICA WIRE SERVICES OR
    DISSEMINATION IN THE UNITED STATES OF AMERICA/

    TSX: CFN.UN

    This news release does not constitute an offer to sell or a solicitation
    of an offer to buy any of the securities in the United States. The
    securities have not been and will not be registered under the United
    States Securities Act of 1933, as amended (the "U.S. Securities Act") or
    any state securities laws and may not be offered or sold within the
    United States unless registered under the U.S. Securities Act and
    applicable state securities laws or an exemption from such registration
    is available.

    EDMONTON, June 21 /CNW/ - Carfinco Income Fund ("Carfinco" or the "Fund")
is pleased to announce the successful closing today of the Fund's offering
(the "Offering") from treasury of 2,771,100 trust units (including 361,400
trust units from the exercise in full of the over-allotment option granted to
the underwriters) at $4.15 per trust unit for gross proceeds to the Fund of
$11,500,065. Upon closing of the Offering, Carfinco has 23,332,396 trust units
outstanding. A syndicate led by GMP Securities L.P. and including Blackmont
Capital Inc. and Pacific International Securities Inc. acted as underwriters
for the Offering.
    The net proceeds of the Offering will be used to repay a portion of the
senior indebtedness of the Fund. In the normal course of business, the senior
indebtedness provides the availability of capital for the Fund to grow its
finance receivables.
    The first distribution for which trust units purchased pursuant to the
Offering will be eligible will be the distribution payable on July 31, 2007 to
unitholders of record on July 20, 2007.

    About Carfinco Income Fund

    A growth-oriented income trust, Carfinco focuses on providing consumer
car loans to borrowers unable to obtain financing through traditional lending
sources. A network of select independent and franchise dealerships offer
Carfinco's payment plan to their customers who must, along with the vehicle,
meet Carfinco's underwriting guidelines.
    The units of the Fund trade on The Toronto Stock Exchange under the
symbol "CFN.UN".
    Caution Regarding Forward-Looking Statements - This news release contains
certain forward-looking statements, including statements regarding the
business and anticipated financial performance of the Fund. These statements
are subject to a number of risks and uncertainties. Actual results may differ
materially from results contemplated by the forward-looking statements. When
relying on forward-looking statements to make decisions, investors and others
should carefully consider the foregoing factors and other uncertainties and
should not place undue reliance on such forward-looking statements.

    %SEDAR: 00019164E




For further information:

For further information: Mr. Tracy A. Graf, CEO & Trustee of Carfinco
Income Fund, Telephone: 1-888-486-4356, Facsimile: 1-888-486-7456, E-mail:
tgraf@carfinco.com

Organization Profile

Carfinco Financial Group Inc.

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