STRATA Income Fund - January 2009 Distribution



    TORONTO, Jan. 21 /CNW/ - Based upon a review of various factors, we have
reduced the distribution for STRATA Income Fund (the "Fund") to $0.05 per
capital unit payable on February 13, 2009 to unitholders of record on January
31, 2009. Among the more important considerations were distribution cuts by a
number of oil and gas royalty trusts in response to the recent correction in
oil and gas prices, the global economic slowdown including its impact on
corporate revenues and earnings, and corporate conversions accompanied by
distribution cuts by a number of income trusts. These factors have caused
COMPASS Income Fund ("COMPASS"), the sole underlying investment of the Fund,
to reduce its distributions and STRATA to follow suit.
    Notwithstanding the current challenging economic environment, we believe
there are some very positive developments occurring which we shall consider in
determining future distribution levels of COMPASS and of the Fund. More
specifically, Middlefield's oil and gas consultant, Groppe Long and Littell,
is currently forecasting a significant recovery in energy prices with crude
oil expected to average US$85 per barrel in 2009. In addition, we expect that
the various economic stimulus packages and interest rate cuts will begin to
take effect in the second half of 2009, thereby improving business prospects.

    It should be noted that the Fund will be maturing on November 30, 2009,
at which time the preferred securities, which are currently yielding 6.0% per
annum, will be repaid in full at the original subscription price of $10.00
plus accrued interest. In addition, those holding STRATA capital units will
have the option to receive the net asset value at maturity or exchange their
capital units for units of COMPASS.
    The capital units and the preferred securities trade on the Toronto Stock
Exchange under the symbols STW.UN and STW.PR.A, respectively.

    This press release contains forward-looking information. The
forward-looking information contained in this press release is based on
historical information concerning the distributions and dividends paid on the
securities of issuers historically included in the portfolio of COMPASS Income
Fund, STRATA's sole investment. Actual future results, including the amount of
distributions paid by the Fund, may differ from the monthly distribution
amount. Specifically, the income from which distributions are paid may vary
significantly due to: changes in portfolio composition of COMPASS Income Fund;
changes in distributions and dividends paid by issuers of securities included
in the COMPASS portfolio from time to time; there being no assurance that
those issuers will pay distributions or dividends on their securities; the
declaration of distributions and dividends by issuers of securities included
in the portfolio will generally depend upon various factors, including the
financial condition of each issuer and general economic and stock market
conditions; the level of borrowing by the Fund; and the uncertainty of
realizing capital gains. The risks, uncertainties and other factors that could
influence actual results are described under "Risk Factors" in the Fund's
prospectus dated January 29, 2004 and other documents filed by the Fund with
the Canadian securities regulatory authorities. The forward-looking
information contained in this press release constitutes the Fund's current
estimate, as of the date of this press release, with respect to the matters
covered hereby. Investors and others should not assume that any
forward-looking statement contained in this press release represents the
Fund's estimate as of any date other than the date of this press release.





For further information:

For further information: please visit our website at www.middlefield.com
or contact the undersigned: Nancy Tham, Senior Vice President, (416) 847-5349

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STRATA INCOME FUND

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