Mullen provides 2007 Canadian Income Tax information



    CALGARY, March 5 /CNW/ - (TSX - MTL.UN) The Mullen Group Income Fund
("Mullen" and/or the "Fund") is pleased to provide the following information
which is intended to assist Canadian resident Unitholders in the preparation
of a 2007 T1 Income Tax Return. The Fund has determined that for Canadian
resident Unitholders, distributions declared and paid in respect of 2007 are
comprised of 94.85 percent taxable income and 5.15 percent return of capital.
    The information contained herein is based on the Fund's understanding of
the Income Tax Act (Canada) (the "Act") and the regulations thereunder, and is
provided for general information only. Unitholders are advised to consult
their personal tax advisors with respect to their particular circumstances.
    Mullen qualifies as a mutual fund trust under the Act and as such, the
Mullen Trust Units ("Units") are qualified investments for registered
retirement savings plans ("RRSPs"), registered retirement income funds
("RRIFs"), registered education savings plans ("RESPs"), and deferred profit
sharing plans ("DPSPs"), all as defined in the Act. Unitholders who hold their
Units in a RRSP, RRIF, RESP, or DPSP need not report any income related to
Unit distributions on their 2007 Income Tax Return.
    A Unitholder that does not hold his or her Units in an RRSP, RRIF, RESP
or DPSP, must report the taxable portion of the 2007 income allocated by the
Trust to the Unitholder, on the Unitholder's 2007 Income Tax Return. This
taxable amount will be reported on a "T3 - Statement of Trust Income and
Allocations and Designations" ("T3 Slip") that will be issued (i.e., "Other
income" - Box 26 on the T3 Slip) and mailed to all Unitholders before
March 31, 2008.

    Trust Units

    Mullen's distributions totaled $1.80 per Unit for 2007. The following
table summarizes the taxable income and return of capital components of each
monthly distribution declared and paid in respect of 2007, including the
distribution paid on January 15, 2008 to Unitholders of record on December 31,
2007:

    
    -------------------------------------------------------------------------
                                                         Taxable    Return
                                           Distribution  Portion   of Capital
    Record Date          Payment Date       per Unit     per Unit   per Unit
    -------------------------------------------------------------------------
    January 31, 2007     February 15, 2007     $0.15     $0.14228    $.00772
    -------------------------------------------------------------------------
    February 28, 2007    March 15, 2007        $0.15     $0.14228    $.00772
    -------------------------------------------------------------------------
    March 31, 2007       April 17, 2007        $0.15     $0.14228    $.00772
    -------------------------------------------------------------------------
    April 30, 2007       May 15, 2007          $0.15     $0.14228    $.00772
    -------------------------------------------------------------------------
    May 31, 2007         June 15, 2007         $0.15     $0.14228    $.00772
    -------------------------------------------------------------------------
    June 30, 2007        July 16, 2007         $0.15     $0.14228    $.00772
    -------------------------------------------------------------------------
    July 31, 2007        August 15, 2007       $0.15     $0.14228    $.00772
    -------------------------------------------------------------------------
    August 31, 2007      September 17, 2007    $0.15     $0.14228    $.00772
    -------------------------------------------------------------------------
    September 30, 2007   October 15, 2007      $0.15     $0.14228    $.00772
    -------------------------------------------------------------------------
    October 31, 2007     November 15, 2007     $0.15     $0.14228    $.00772
    -------------------------------------------------------------------------
    November 30, 2007    December 17, 2007     $0.15     $0.14228    $.00772
    -------------------------------------------------------------------------
    December 31, 2007    January 15, 2008      $0.15     $0.14228    $.00772
    -------------------------------------------------------------------------

    The return of capital portion of distributions reduces the Unitholder's
adjusted cost base ("ACB") of Units. The ACB of a Unit generally equals the
purchase price of the Unit, including commissions, less any return of capital
distributions received or receivable after the date of acquisition.
Unitholders should consult their own legal or tax advisors as to their
particular tax consequences of holding Units.

                        OTHER RELATED TAX INFORMATION
    

    Mullen Co. Limited Partnership ("MCLP") B Units ("MCLP B Unit")

    Pursuant to a Plan of Arrangement effective June 1, 2006, each Partner
received a non-interest bearing loan from MCLP in respect of each MCLP B Unit,
in an amount equal to the fair market value of the Horizon North Logistics
Inc. ("HNL") shares and HNL arrangement warrants (the "Warrant") issued to
each Partner.
    Each MCLP B Unit received 0.2878 of an HNL share and 0.2025 of a Warrant.
Mullen believes that each HNL share had a fair market value of $2.40 and each
Warrant had a nominal value. On January 1, 2007, MCLP made a distribution of
capital to each Partner equal to the loan amount. That distribution (0.2878 x
2.40) or $0.6907 per MCLP B Unit reduced the loan amount at the time of the
distribution and the adjusted cost base "ACB" of the MCLP B Units was reduced
by the distribution amount. If the ACB of the MCLP B Unit becomes negative
that negative amount will be deemed a capital gain of the Partner. The above
distribution is in addition to the normal monthly distributions.

    This press release may contain forward-looking statements that are
subject to risk factors associated with the oil and gas business and the
overall economy. The Fund believes that the expectations reflected in this
press release are reasonable, but results may be affected by a variety of
variables. The Fund relies on litigation protection for "forward-looking"
statements.

    Mullen is an open-ended income fund that owns a network of independently
operated businesses. Today the Mullen Group is recognized as the largest
provider of specialized transportation and related services to the oil and
natural gas industry in western Canada and as one of the leading suppliers of
trucking and logistics services in Canada - two sectors of the economy in
which the Fund has strong business relationships and industry leadership.
Administration of the Fund is delegated to Mullen Group Inc. which, in
addition to managing the Fund, provides management and financial expertise,
technology and systems support to its independent businesses.
    Mullen is a publicly traded income trust listed on the Toronto Stock
Exchange under the symbol "MTL.UN". Additional information is available on our
website at www.mullen-group.com.

    %SEDAR: 00022408E




For further information:

For further information: Mr. David E. Olson - Vice President, Finance
and Chief Financial Officer, P.O. Box 87, 1 Maple Leaf Road, Aldersyde,
Alberta, Canada, T0L 0A0, Tel: (403) 652-8888, Fax: (403) 601-8301

Organization Profile

Mullen Group Ltd.

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