Exchange Income Corporation announces dividend reinvestment plan



    WINNIPEG, Aug. 20 /CNW/ - Exchange Income Corporation (TSX: EIF) ("EIC"
or the "Corporation") announced today that it has adopted a dividend
reinvestment and cash purchase plan (the "DRIP") effective for its regular
monthly dividend payable in October, 2009 to its shareholders of record on
September 30, 2009.
    The DRIP provides eligible shareholders of EIC with the opportunity to
reinvest the dividends they receive on common shares ("EIC Shares") of EIC in
additional EIC Shares at a discount to the market price of the EIC Shares and
without incurring brokerage fees or commissions.
    Only shareholders of EIC who are residents of Canada are eligible to
participate in the DRIP. Under the terms of the DRIP, eligible shareholders
may elect to reinvest distributions paid on EIC Shares in additional EIC
Shares at a price equal to 97% of the volume weighted average closing trading
price (the "Average Closing Price") of the EIC Shares on the Toronto Stock
Exchange (the "TSX") for the five trading days preceding the dividend payment
date.
    The DRIP also permits eligible shareholders of EIC to purchase new EIC
Shares at a price equal to the average closing trading price of the EIC Shares
on the TSX by way of an additional cash payment. The purchase price for
additional cash purchases will be the Average Closing Price of the EIC Shares
and no brokerage fees or commissions will apply to such purchases under the
DRIP. The minimum permitted monthly optional cash purchase is $100, and no
participant may make optional cash purchases in excess of $10,000 in one
calendar year. The aggregate number of EIC Shares purchased pursuant to
optional cash payments during any financial year is subject to a maximum of
two (2) percent of the total number of outstanding EIC Shares at the
commencement of such financial year.
    EIC Shares purchased through the DRIP will be issued directly from the
treasury of EIC.
    Registered shareholders of EIC may enroll by completing the enrollment
form which will be made available on the website of EIC at
www.exchangeincomecorp.ca commencing in September, 2009 and submitting it to
CIBC Mellon Trust Company at the address set forth in the enrollment form.
Beneficial shareholders of EIC are encouraged to contact their broker or other
intermediary for enrolment information.

    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.eiif.ca.
    Additional information relating to the Corporation, including all public
filings, is available on SEDAR (www.sedar.com).

    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 management information
circular dated June 22, 2009 filed by the Fund 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.
    





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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