Foundation Trust - Early Redemption of the Replacement Notes



    MONTREAL, Aug. 14 /CNW Telbec/ - Foundation Trust (the "Trust") announces
that as a consequence of the occurrence of an Acceleration Event in the
traditional asset securitization program supporting the Trust's outstanding
Replacement Series A Notes (the "Replacement Notes") and the exercise by the
servicer of the program of its "clean-up call option" with respect to the
balance of the lease portfolio, the Trust will redeem in full the Replacement
Notes on August 18, 2008 at their face amount plus accrued and unpaid
interest.

    Background

    At the time of the market disruption of mid-August 2007, the Trust had
approximately $263 million of Class A Series A and Class A Series E Notes
outstanding (the "Original Notes"). Further to the May 9, 2008 restructuring,
Replacement Series A Notes (the "Replacement Notes") were issued by the Trust
in replacement of the Original Notes. The face amount of the Replacement Notes
was $114,075,879 and following the June and July principal repayments, the
principal balance of the Replacement Notes was reduced to $51,500,033. Before
this early redemption, approximately $212 million of principal amount has been
repaid to Noteholders since the market disruption of mid-August 2007. The
Replacement Notes bear interest to maturity at an annual interest rate equal
to one-month CDOR plus 0.7475% (being an interest rate of 3.9089% for the
month of July 2008 and 3.8775% for the period from August 1 to August 18,
2008). CDOR is reset at the beginning of each calendar month. Interest is paid
on the Replacement Notes together with the Trust's share of the principal
distributions received on the underlying portfolio of auto leases. The
Replacement Notes have not been rated.

    About the Trust

    The Trust held an interest in a portfolio of auto leases the acquisition
of which was originally funded by the Trust in the Canadian asset-backed
commercial paper market.




For further information:

For further information: Mathieu Lafleur-Ayotte, (514) 879-3302; Gordon
Thompson, (416) 363-1561, www.mmcapitalcorp.com

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FOUNDATION TRUST

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