Exchange Industrial Income Fund announces closing of private placement offering



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

    WINNIPEG, June 22 /CNW/ - Exchange Industrial Income Fund (TSX:EIF.UN)
(the "Fund") announced today that it has closed its previously announced
private placement offering (the "Offering") of units of the Fund ("Units"),
each Unit being comprised of one Class A trust unit (a "Class A Unit") and one
Class A Unit purchase warrant (a "Warrant"). Each Warrant entitles the holder
thereof to purchase one Class A Unit for a period of two years at a price of
$10.00 per Class A Unit. At the closing of the Offering the Fund issued
835,810 Units at a price of $9.50 per Unit for total gross proceeds of
$7,940,195.
    The Offering was completed on a commercially reasonable best efforts
basis by Wellington West Capital Inc., as agent.
    The Fund intends to use the net proceeds of the Offering for general
purposes, including with respect to the previously announced conversion to a
corporation by the Fund.

    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 Fund 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 Fund's financial performance, dilution,
restrictions on potential future growth, the risk of unitholder liability,
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 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.
    

    About Exchange Industrial Income Fund

    Exchange Industrial is a diversified, acquisition-oriented income trust,
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 Fund is to invest in profitable, well-established companies
with strong cash flows operating in niche markets in Canada and/or the United
States.
    The Fund is currently operating in two niche business segments: aviation
and specialty manufacturing. The aviation segment consists of Perimeter
Aviation Ltd., Keewatin Air Limited and Calm Air International Ltd. 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 Industrial Income Fund, please visit
www.eiif.ca.
    Additional information relating to the Fund, including all public
filings, is available on SEDAR (www.sedar.com).





For further information:

For further information: Mike Pyle, CEO, Exchange Industrial Income
Fund, 1067 Sherwin Road, Winnipeg, MB, R3H 0T8, Phone: (204) 982-1850, Fax:
(204) 982-1855, E-mail: mpyle@eig.ca; Alice Dunning, Investor Relations, The
Equicom Group Inc., (416) 815-0700 Ext. 255, adunning@equicomgroup.com


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