Cargojet acquires majority interest in Prince Edward Air to expand its regional brand

    TORONTO, Jan. 18 /CNW/ - Cargojet Income Fund (the "Fund") (TSX: CJT.UN),
Canada's leading domestic premium overnight air cargo network announced today
that it has signed a non-binding letter of intent for the purpose of acquiring
a 51% interest in Prince Edward Air Ltd., a regional operator of cargo
aircraft based in Eastern Canada. The completion of the acquisition is subject
to the negotiation and execution of a definitive purchase and sale agreement,
the completion of legal and financial due diligence and customary closing
conditions and is expected to close March 1, 2008.
    "This acquisition is part of Cargojet's strategic plan to expand its
regional air cargo business. Bob Bateman will remain President of the company
and be responsible for the day-to-day management of the regional brand. We
look forward to working with Bob and his team to develop and expand the
regional air cargo business. This will allow Cargojet to continue to focus and
grow its overnight air cargo network and related fleet expansions while
maintaining and growing the regional brand", said Ajay K. Virmani, President
and CEO of Cargojet.
    Prince Edward Air was founded in 1989 by Bob Bateman and currently
operates a fleet of thirteen aircraft primarily in Atlantic Canada. The
company provides air cargo lift to major courier and transportation companies
including Cargojet. Prince Edward Air will retain its management, sales,
marketing and support staff, consisting of approximately 90 employees, and
will continue operations at its current headquarters located in Charlottetown.
    "I am delighted that Prince Edward Air is playing a major role in the
further consolidation of the regional air cargo business in Canada and am
excited about the future growth potential of this business with Cargojet",
added Bob Bateman, President Prince Edward Air.
    Cargojet announced in October 2007, the acquisition of the assets of
Georgian Express Ltd., another strong regional operator based in Ontario. It
is anticipated that the Georgian business will be combined with the existing
business of Prince Edward Air to capitalize on the synergies of the combined
business. Annual revenues of the combined regional business are expected to
approximate $22.0 million.

    Cargojet is Canada's leading provider of time sensitive overnight air
cargo services. Cargojet operates its network across North America
transporting over 840,000 pounds of time sensitive air cargo each business
night, utilizing a fleet of twenty all cargo aircraft.

    Notice on Forward Looking Statements:

    Certain statements contained herein constitute "forward-looking
statements". Forward-looking statements look into the future and provide an
opinion as to the effect of certain events and trends on the business.
Forward-looking statements may include words such as "plans," "intends,"
"anticipates," "should," "estimates," "expects," "believes," "indicates,"
"targeting," "suggests" and similar expressions. These forward-looking
statements are based on current expectations and entail various risks and
uncertainties. Actual results may materially differ from expectations, if
known and unknown risks or uncertainties affect our business, or if our
estimates or assumptions prove inaccurate. The issuer assumes no obligation to
update or revise any forward-looking statement, whether as a result of new
information, future events or any other reason.

    %SEDAR: 00022068E

For further information:

For further information: P. Dhillon, Vice President Marketing, Public &
Government Relations, Tel: (905) 501 7373,

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