Liquor Barn Income Fund announces strategic review process



    - The Fund adopts a limited duration unitholder rights plan -

    /NOT FOR DISTRIBUTION IN THE U.S. OR OVER U.S. WIRE SERVICES/

    EDMONTON, April 19 /CNW/ - Liquor Barn Income Fund (TSX: LBN.UN) ("Liquor
Barn" or the "Fund"), a leading operator of private liquor stores in Western
Canada, announced today that its Board of Trustees has initiated a strategic
review process to identify and consider strategic alternatives available to
Liquor Barn to enhance unitholder value. Liquor Barn also announced that its
Board of Trustees has adopted a limited duration unitholder rights plan dated
April 18, 2007 (the "Rights Plan").
    The Rights Plan was adopted in response to the unsolicited take-over bid
(the "Liquor Stores Offer") made by Liquor Stores Income Fund for all of the
outstanding units of the Fund. The purpose of the Rights Plan is to ensure
that the Board of Trustees has adequate time to identify, develop and
negotiate value-enhancing alternatives and to encourage the fair treatment of
unitholders in connection with the Liquor Stores Offer or any other take-over
bid for the Fund. The Rights Plan is not intended to prevent take-over bids.
Those bids that meet certain requirements intended to protect the interests of
unitholders are considered under the rights plan to be "Permitted Bids." A
Permitted Bid is a take-over bid made by way of a circular for all outstanding
units which remains open for at least 60 days and satisfies certain other
conditions. The Rights Plan, which is subject to Toronto Stock Exchange
approval, will be in effect for a maximum of six months minus one day,
following which it will expire automatically.
    The Fund's Board of Trustees continues to unanimously recommend that
Liquor Barn unitholders reject the Liquor Stores Offer and not tender their
units to Liquor Stores Income Fund. The Fund has engaged TD Securities Inc. as
financial advisor to assist the Board of Trustees in evaluating the Liquor
Stores Offer and in conducting the strategic review process. There can be no
assurance that the strategic review process will result in an improved
take-over bid or any other alternative transaction, and the Board of Trustees
may determine that the best alternative available for the Fund is to continue
with its current growth strategy.
    Liquor Barn is also pleased to provide an update regarding the execution
of its growth strategy. To date in 2007, Liquor Barn has successfully acquired
and integrated seven stores, growing its store count to 72 across Western
Canada, an increase of approximately 10% in less than four months. The
majority of these newly acquired stores are in British Columbia, where the
regulatory regime has encouraged an environment of larger, and typically more
profitable, stores than in Alberta. With two recently completed financings for
gross proceeds of $49 million, Liquor Barn is well positioned to continue
implementing its successful store acquisition strategy and meet its previously
stated target of an additional 15 new stores between January 1 and July 31,
2007.

    About Liquor Barn

    Liquor Barn Income Fund is a publicly traded Canadian income fund that
owns a 72.4% interest in Liquor Barn Limited Partnership ("Liquor Barn LP").
Liquor Barn LP, which currently operates 61 liquor stores in Alberta and 11 in
British Columbia, is a leading operator of private liquor stores in Western
Canada. Liquor Barn's units trade on the Toronto Stock Exchange under the
symbol LBN.UN. Additional information about Liquor Barn Income Fund is
available at www.liquorbarn.ca or www.sedar.com.

    Forward-Looking Statements

    This news release contains forward-looking statements. These statements
relate to future events or future performance and reflect the expectation of
the Fund regarding its growth, results of operations, performance and business
prospects, and opportunities and trends affecting the retail liquor industry.
Such forward-looking statements reflect current beliefs of management and are
based on information currently available. Prospective investors can identify
many of these statements by looking for words such as "believe", "expects",
"will", "intends", "projects", "anticipates", "estimates", "continues" or
similar words or the negative of these or other comparable terminology. A
number of factors could cause actual events or results to differ materially
from the events or results discussed in such forward-looking statements.
Although management believes that the expectations represented in such
forward-looking statements are reasonable, there can be no assurance that such
expectations will prove to be correct. Any forward-looking statements included
in this news release are made as of the date of this news release and the Fund
assumes no obligation to update or revise them to reflect new events or
circumstances.

    %SEDAR: 00023526E




For further information:

For further information: Richard N. Hughes, Chief Financial Officer,
Liquor Barn GP Inc., (780) 462-0190 ext 310

Organization Profile

LIQUOR BARN INCOME FUND

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