IBI Income Fund announces 7.9% increase in cash distribution to unitholders, the third increase in the fund's distribution rate since its initial public offering in August 2004



    TORONTO, March 21 /CNW/ - IBI Income Fund (the "Fund") (TSX: IBG.UN)
today announced that the monthly cash distribution on its Fund Units has been
increased by $0.0083, or 7.9%, to $0.1133 per Fund Unit ($1.36 per Fund Unit
per annum) effective with the distribution for the month of March 2007,
payable on April 30, 2007 to unitholders of record on March 30, 2007. This is
the third increase in the Fund's distribution rate since its initial public
offering in August 2004.
    The Fund also announced that IBI Group Management Partnership will
receive a distribution of $0.2108 per Class B Unit held by it in IBI Group,
payable on April 30, 2007. This per Class B Unit distribution includes the
distribution entitlement of $0.1133 per Class B Unit for the month of
March 2007 plus an additional equalizing distribution for the fiscal quarter
so that the distributions per Class B Unit for the fiscal quarter ending
March 31, 2007 will be the same as the distributions per Fund Unit for such
fiscal quarter (the rights to equalizing distributions are more fully
described below). As more fully described below, IBI Group is the partnership
through which the professional services business of the Fund is carried out
(together with the other operating entities owned by IBI Group), and through
which management of such business holds its retained ownership interest.

    About IBI Income Fund

    The Fund holds an indirect 63% interest in IBI Group, a partnership which
provides professional services, including planning, design, implementation,
analysis of operations and other consulting services in relation to four main
areas of development, being urban land, building facilities, transportation
networks and systems technology. The remaining 37% of IBI Group, represented
by Class B Units, is owned by IBI Group Management Partnership.
    There are currently 8,567,778 Fund Units and 5,025,778 Class B Units
issued and outstanding. All of the Class B Units are owned by IBI Group
Management Partnership.
    Under the constating documents of the Fund and IBI Group, the Class B
Units of IBI Group (which are all held by IBI Group Management Partnership)
have entitled the holder to monthly distributions of $.05625 per Class B Unit
which is equal to 60% of the distributions originally targeted on the Fund
Units at the time of the Fund's initial public offering of Fund Units. At the
end of each fiscal quarter, so long as distributions on the Fund Units during
the subject fiscal year have met the originally targeted level of $0.09375 per
Fund Unit per month, and IBI Group is otherwise able to do so, the holder of
the Class B Units is entitled to an additional distribution equalizing the
distributions per Class B Unit for such quarter with the distributions per
Fund Unit.
    These arrangements for preferred distribution rights for the holders of
Fund Units terminated today when the trustees of the Fund approved the audited
financial statements of the Fund for the fiscal year ending December 31, 2006.
These arrangements were to continue until the approval by the trustees of the
Fund of audited financial statements for a fiscal year (ending December 31,
2006 or later) in which (i) average monthly distributions on Fund Units (on a
diluted basis as if the Class B Units of IBI Group had been exchanged for Fund
Units) were at least $0.09375 per Fund Unit and (ii) the Fund earned EBITDA of
at least $14.242 million. These targets were exceeded during the fiscal year
ended December 31, 2006 and, as a result, all future distributions on Fund
Units and Class B Units will be made monthly on a pro rata basis. Also, as a
result of this condition being met, the Class B Units of IBI Group are now
exchangeable, on a one-for-one basis, for Fund Units.
    The Fund is a TSX listed income trust, which pays monthly distributions
and trades under the symbol "IBG.UN". Holders of Fund Units who are
non-residents of Canada will be required to pay all withholding taxes payable
in respect of any distributions of income by the Fund.

    %SEDAR: 00021044E




For further information:

For further information: Allan J. Kamerman, IBI Income Fund, 230
Richmond Street West, 5th Floor, Toronto, ON, M5V 1V6, Tel: (416) 596-1930,
Fax: (416) 596-8024

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IBI Group Inc.

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