Liquor Barn Income Fund files final prospectus for bought deal



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

    EDMONTON, April 4 /CNW/ - Liquor Barn Income Fund (TSX: LBN.UN) ("Liquor
Barn" or the "Fund"), a leading operator of private liquor stores in Western
Canada, today announced the filing of its final prospectus in connection with
its previously announced bought deal offering of 3,980,000 units of the Fund
("Units") at a price of $8.40 per Unit. The offering is scheduled to close on
April 10, 2007.
    In connection with this offering, Liquor Barn included in its final
prospectus, the following summary financial information regarding its
operations for the two-month period ended February 28, 2007:

    Summary Financial Information

    The following table sets forth summary financial information regarding
our operations for the two-month period ended February 28, 2007. We expect our
gross margin for this period to be approximately 20.5%, which is in line with
our previous quarter. Our estimated results for this period are not
necessarily indicative of the results that may be expected for the full year
due to seasonal variations in sales levels inherent in the retail liquor
industry, which has historically experienced lower sales levels in the first
quarter of the year followed by successively higher sales levels in each of
the second, third and fourth quarters due to seasonal shopping patterns. We
expect that approximately 40% to 45% of our annual sales in 2007 will occur in
the first two quarters of the year. Occupancy related expenses, general and
administrative expense, amortization and interest expense remain relatively
steady throughout the year.


    
                                                                 Two Months
                                                                      ended
                                                                February 28,
    Income Statement Items:                                            2007
                                                              --------------

    Total sales............................................... $  19,459,483
    Cost of sales.............................................    15,474,990
                                                               --------------
    Gross profit..............................................     3,984,493
    Total costs and expenses..................................     4,637,949
                                                               --------------
    Earnings (loss) from operations...........................      (653,456)


                                                                       As at
                                                                 February 28,
    Balance Sheet Items:                                                2007
                                                               --------------

    Current assets............................................ $  21,220,102
    Fixed assets and goodwill.................................   100,626,478
    Other assets..............................................       836,789
                                                               --------------
    Total assets..............................................   122,683,369
    Current liabilities.......................................     6,076,924
    Long term liabilities and non-controlling interest........    48,057,256
    Unitholders' equity.......................................    68,549,189
                                                               --------------
    Total liabilities and unitholders' equity.................   122,683,369


    The financial information provided in the tables above has not been
audited or been subject to customary quarter-end review procedures and, as a
result, may be subject to further adjustment prior to the release of our
unaudited financial statements for the first quarter of 2007. Although this
summary financial information reflects management's reasonable estimates as of
the date of this prospectus, there can be no assurance that these estimates or
the expectations upon which they are based will prove to be correct.

                                 (*) (*) (*)
    

    The Units have not been, and will not be, registered under the U.S.
Securities Act of 1933, and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements of such Act. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy, nor shall there be any sale of
these securities, in a jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of such province or other jurisdiction.

    About Liquor Barn

    Liquor Barn Income Fund is a publicly traded Canadian income fund that
owns a 61.4% interest in Liquor Barn Limited Partnership ("Liquor Barn LP").
Liquor Barn LP, which currently operates 61 liquor stores in Alberta and 10 in
British Columbia, is a leading operator of private liquor stores in Western
Canada by number of stores. Liquor Barn Income Fund'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: Dr. John Mather, Chief Executive Officer,
Liquor Barn GP Inc., (780) 462-0190 ext 315; Richard Hughes, Chief Financial
Officer, Liquor Barn GP Inc., (780) 462-0190 ext 310

Organization Profile

LIQUOR BARN INCOME FUND

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