Parkland acquires Joy Propane business for $16.3 Million and announces a monthly distribution increase



    
    Highlights:

    -   Highly complementary to recent acquisition of Neufeld Petroleum and
        Propane
    -   Monthly distributions increased to $0.25 per unit effective
        immediately
    

    RED DEER, AB, April 25 /CNW/ - Parkland Income Fund ("Parkland" or the
"Fund") today announced that it has completed the acquisition of Joy Propane
Ltd. ("Joy"), a significant player in the northern British Columbia and
northern Alberta propane supply business.
    Headquartered in Dawson Creek, British Columbia, and established in 1967,
Joy operates its propane supply business from 6 branches in Dawson Creek (2),
Fort St John, Chetwynd and Tumbler Ridge, British Columbia and Fairview,
Alberta. This offers minimum overlap with the Neufeld business and fills in
complementary market areas. Management expects to achieve synergies in
logistics, branch operations and administration. During the prior fiscal year
annual sales exceeded 20 million litres of propane and sales revenues exceeded
$12 million. The business serves customers in the oil and gas, forestry,
agricultural, residential and auto sectors.
    Parkland's President and Chief Executive Officer Mike Chorlton said, "The
acquisition of Joy is exciting as it both fills gaps in our new commercial and
industrial network and demonstrates the growth opportunity that we expected
when we announced the acquisition of the Neufeld companies of Grande Prairie,
Alberta in January, 2007."
    The acquisition was completed for a price of $16.3 million including all
working capital. It will be financed through the issuance of 130,530 Class C
Limited Partnership Units valued at $5.1 million and the balance was drawn
from Parkland's cash on hand and incremental borrowing. Class C Limited
Partnership Units receive the same monthly distributions as Fund Units, have
certain voting rights and are convertible into regular Fund Units.
    The transaction is projected to be accretive to Parkland and as a
consequence Parkland's Board of Directors is announcing a one cent increase in
Parkland's distribution to $0.25 per unit per month on June 15, 2007 to
Unitholders of record on May 31, 2007.

    About Parkland
    --------------
    Parkland Income Fund operates retail and wholesale fuels and convenience
store businesses under its Fas Gas Plus, Fas Gas, Race Trac Fuels and Short
Stop Food Stores brands and through independent branded dealers, and
transports fuel through its Petrohaul division. With over 550 locations,
Parkland has developed a strong market niche in western and northern Canadian
non-urban markets. Through Neufeld Petroleum and Propane the Fund markets
propane, gasoline, diesel, lubricants, industrial fluids, agricultural inputs
and delivery services to commercial and industrial customers in northern
Alberta, northeastern British Columbia and the Northwest Territories. To
maximize value for its unitholders, the Fund is focused on the continuous
refinement of its retail portfolio, increased revenue diversification through
growth in non-fuel revenues and active supply chain management. Parkland
operates the Bowden refinery near Red Deer, Alberta producing drilling fluids
on a contract basis.
    The Fund's units trade on the Toronto Stock Exchange (TSX) under the
symbol PKI.UN. For more information, visit www.parkland.ca.

    Certain information included herein is forward-looking. Forward-looking
statements include, without limitation, statements regarding the future
financial position, business strategy, budgets, projected costs, capital
expenditures, financial results, taxes and plans and objectives of or
involving Parkland. Many of these statements can be identified by looking for
words such as "believe", "expects", "expected", "will", "intends", "projects",
"projected", "anticipates", "estimates", "continues", or similar words and
include but are not limited to, statements regarding the accretive effects of
the acquisition and the anticipated benefits of the acquisition. Parkland
believes the expectations reflected in such forward-looking statements are
reasonable but no assurance can be given that these expectations will prove to
be correct and such forward-looking statements should not be unduly relied
upon. Forward-looking statements are not guarantees of future performance and
involve a number of risks and uncertainties some of which are described in the
Fund's annual report, annual information form and other continuous disclosure
documents. Such forward-looking statements necessarily involve known and
unknown risks and uncertainties and other factors, which may cause the Fund's
actual performance and financial results in future periods to differ
materially from any projections of future performance or results expressed or
implied by such forward-looking statements. Such factors include, but are not
limited to: general economic, market and business conditions; industry
capacity; competitive action by other companies; refining and marketing
margins; the ability of suppliers to meet commitments; actions by governmental
authorities including increases in taxes; changes in environmental and other
regulations; and other factors, many of which are beyond the control of
Parkland. Any forward-looking statements are made as of the date hereof and
the Fund does not undertake any obligation, except as required under
applicable law, to publicly update or revise such statements to reflect new
information, subsequent or otherwise.

    If you prefer to receive Company news releases via e-mail, please request
    at corpinfo@parkland.ca.





For further information:

For further information: Red Deer: Mike W. Chorlton, President and CEO,
(403) 357-6400; John G. Schroeder, Vice President and CFO (403) 357-6400

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Parkland Fuel Corporation

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