General Donlee Announces Normal Course Issuer Bid



    TORONTO, Jan. 26 /CNW/ - General Donlee Income Fund ("General Donlee" or
"the Fund") (TSX: GDI.UN), announced today that the Fund has filed a notice
with the Toronto Stock Exchange and received its approval to purchase, through
the facilities of the Toronto Stock Exchange for cancellation, a portion of
its convertible unsecured subordinated debentures due 2014 ("2014 convertible
debentures"). Under the normal course issuer bid, General Donlee intends to
repurchase up to $4,698,400 in aggregate principal amount of its 2014
convertible debentures, representing 10% of the public float of $46,984,000 in
aggregate principal amount of the 2014 convertible debentures issued and
outstanding as of December 31, 2008. The price that the Fund will pay for any
2014 convertible debentures purchased under the normal course issuer bid will
be the prevailing market price at the time of purchase. As of January 13,
2009, there was $47,222,000 in aggregate principal amount of the 2014
convertible debentures issued and outstanding. Purchases may commence on
January 28, 2009 and will terminate on January 27, 2010.
    From July 1, 2008 to December 31, 2008, the weighted average daily
trading volume of the Fund's 2014 convertible debentures was $18,865 in
aggregate principal amount of its 2014 convertible debentures. Under the TSX
Rules, General Donlee may purchase up to 25% of the weighted average daily
trading volume on any day, which is $4,716 in aggregate principal amount of
its 2014 convertible debentures, subject to a weekly "block purchase"
exemption.
    The Trustees and senior management of General Donlee are of the opinion
that the purchase of the convertible debentures from time to time at the
prevailing market price would be a worthwhile investment and in the best
interests of the Fund and its Unitholders. As at January 13, 2009, General
Donlee had acquired $2,778,000 in aggregate principal amount of the 2014
convertible debentures by means of open market transactions pursuant to the
normal course issuer bid that expired on January 24, 2009, at a weighted
average price of $68.40.

    %SEDAR: 00017571E




For further information:

For further information: Gerald Thain, Chief Financial Officer, General
Donlee Income Fund, Telephone: (416) 743-4417, Fax: (416) 746-8998,
gthain@donleeprecision.com

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GENERAL DONLEE INCOME FUND

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