Exchange Income Corporation announces closing of offering



    
    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/
    

    WINNIPEG, Sept. 11 /CNW/ - Exchange Income Corporation (TSX: EIF) (the
"Corporation") announced today that it has closed its previously announced
bought deal offering (the "Offering") of 5 Year 7.5% Series G Convertible
Senior Secured Debentures (the "Debentures"). At the closing of the Offering
the Corporation issued $30,000,000 principal amount of Debentures to the
underwriters for the Offering.
    The Corporation has also granted the underwriters an option to purchase
up to an additional $4,500,000 principal amount of Debentures, exercisable
within 30 days of the closing of the Offering.
    The underwriters for the Offering were National Bank Financial Inc.,
Wellington West Capital Inc., CIBC World Markets Inc., Raymond James Ltd. and
Research Capital Corporation with National Bank Financial Inc. and Wellington
West Capital Inc. acting as co-lead underwriters.
    The Corporation intends to use the net proceeds of the Offering for
repayment of indebtedness and general working capital. The final closing of
the Offering is subject to the approval of the Toronto Stock Exchange.

    About Exchange Income Corporation

    Exchange Income Corporation is a diversified, acquisition-oriented
corporation, focused on opportunities in the industrial products and
transportation sectors which are ideally suited for public markets except for
their size. The strategy of the Corporation is to invest in profitable, well
established companies with strong cash flows operating in niche markets in
Canada and/or the United States.
    The Corporation is currently operating in two niche business segments:
aviation and specialty manufacturing. The aviation segment consists of
Perimeter Aviation LP., Keewatin Air LP and Calm Air International LP and the
specialty manufacturing segment consists of Jasper Tank Ltd., Overlanders
Manufacturing LP, Water Blast Manufacturing LP, and Stainless Fabrication,
Inc. For more information on Exchange Income Corporation, please visit
www.exchangeincomecorp.ca.

    Caution Concerning Forward-Looking Statements

    The statements contained in this news release that are forward-looking
are based on current expectations and are subject to a number of uncertainties
and risks, and actual results may differ materially. These uncertainties and
risks include, but are not limited to, the dependence of the Corporation on
the operations and assets currently owned by it, the degree to which its
subsidiaries are leveraged, the fact that cash distributions are not
guaranteed and will fluctuate with the Corporation's financial performance,
dilution, restrictions on potential future growth, competitive pressures
(including price competition), changes in market activity, the cyclicality of
the industries, seasonality of the businesses, poor weather conditions, and
foreign currency fluctuations, legal proceedings, commodity prices and raw
material exposure, dependence on key personnel, and environmental, health and
safety and other regulatory requirements. Further information about these and
other risks and uncertainties can be found in the disclosure documents filed
by Exchange Income Corporation with the securities regulatory authorities,
available at www.sedar.com.

    
    The Toronto Stock Exchange has neither approved nor disapproved the
    contents of this press release.
    

    %SEDAR: 00028662E




For further information:

For further information: Mike Pyle, President and CEO, Exchange Income
Corporation, (204) 982-1850, mpyle@eig.ca; Alice Dunning, Investor Relations,
The Equicom Group Inc., (416) 815-0700 or 1-800-385-5451 ext. 255,
adunning@equicomgroup.com


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