Jazz Air Income Fund announces restatement of financial statements related to future tax calculation



    HALIFAX, Feb. 19 /CNW/ - Today, Jazz Air Income Fund (the "Fund")
(TSX: JAZ.UN) announced the re-filing of its 2007 year end financial
statements, restating the future tax liability calculation, and increasing
reported net income by $9.3 million. This restatement does not have any effect
on the financial statements or the year end results of Jazz Air LP.
    The restatement is the result of calculating future tax liability using a
revised rate of 29.5% for 2011 and 28.0% for 2012 and subsequent years rather
than the 31.5% previously announced rate. This restatement is not a cash item.
    The effect of the restatement on the restated consolidated financial
statements for the Jazz Air Income Fund is summarized below:

    
                                             As
                                         previously
                                          reported   Adjustment  As restated
                                              $           $           $
    -------------------------------------------------------------------------

    Consolidated Balance Sheet - 2007
      Future income taxes                   83,810     (9,265)      74,545
      Unitholders' Equity                  933,511      9,265      942,776

    Consolidated Statement of
     Income - 2007
      Provision for future income taxes     83,810     (9,265)      74,545
      Net income for the year                4,855      9,265       14,120
    

    The Board of Trustees of the Fund, on the recommendation of the Audit,
Finance and Risk Committee of the Board and management, has concluded that it
is necessary to restate the Fund's audited financial statements for year end
2007. Accordingly, the Fund's financial statements as previously filed in
respect of this period are now superseded. As previously stated, the year end
2007 financial statements for Jazz Air LP remain unchanged.
    "We take seriously our obligations to provide accurate financial
statements, and we acted responsibly to disclose this information", said
Joseph Randell, President and Chief Executive Officer, Jazz Air LP. "The
restatement does not impact the business of Jazz Air LP; our operations remain
strong as does our ability to generate cash flow."

    About Jazz Air Income Fund

    Jazz Air Income Fund is an unincorporated, open-ended trust established
under the laws of the Province of Ontario, created to indirectly acquire and
hold an interest in the outstanding limited partnership units of Jazz Air LP.


    CAUTION REGARDING FORWARD-LOOKING INFORMATION
    ---------------------------------------------

    Certain statements in this news release may contain statements which are
forward-looking statements. These forward-looking statements are identified by
the use of terms and phrases such as "anticipate", "believe", "could",
"estimate", "expect", "intend", "may", "plan", "predict", "project", "will",
"would", and similar terms and phrases, including references to assumptions.
Such statements may involve but are not limited to comments with respect to
strategies, expectations, planned operations or future actions.
Forward-looking statements, by their nature, are based on assumptions and are
subject to important risks and uncertainties. Any forecasts or forward-looking
predictions or statements cannot be relied upon due to, amongst other things,
changing external events and general uncertainties of the business. Such
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements to differ
materially from those expressed in the forward-looking statements. Results
indicated in forward-looking statements may differ materially from actual
results for a number of reasons, including without limitation, general
industry, market and economic conditions, war, terrorist attacks, changes in
demand due to the seasonal nature of the business, the ability to reduce
operating costs and employee counts, employee relations, labour negotiations
or disputes, restructuring, pension issues, energy prices, currency exchange
and interest rates, changes in laws, adverse regulatory developments or
proceedings, pending and future litigation and actions by third parties, as
well as the factors identified in the Risk Factors section of Jazz Air LP's
and Jazz Air Income Fund's annual MD&A dated February 19, 2008. The
forward-looking statements contained in this discussion represent Jazz's
expectations as of February 19, 2008, and are subject to change after such
date. However, Jazz disclaims any intention or obligation to update or revise
any forward-looking statements whether as a result of new information, future
events or otherwise, except as required under applicable securities
regulations.




For further information:

For further information: Media Contacts: Debra Williams, (519) 659-5696,
London; Analyst Contact: Nathalie Megann, (902) 873-5094; www.flyjazz.ca


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