Cargojet Income Fund Lowers Expectation and Announces Revised Distributions

    TORONTO, July 22 /CNW/ - Cargojet Income Fund (the "Fund") (TSX: CJT.UN)
reported today that its results for the second quarter 2008 will be lower than
expected due to an unforeseen increase in expenses related to the delay in
introduction of its two B767-200ER and one B757-200ER freighter aircraft from
the supplier and lower customer demand as a result of a slowing economy.
Results for the second quarter will be released August 12, 2008. Conference
call details will follow.
    The unexpected delay in the introduction of these aircraft has resulted
in unplanned and non-recurring sub-charter costs and significant additional
crew and training costs. In addition, record fuel prices and a slowing economy
have also resulted in lower overall volumes, which the Fund expects may
continue to year-end. As a result, the Trustees of the Fund believe it is
prudent to reduce cash distributions to $0.0675 per unit for the period from
July 1, 2008 to July 31, 2008 and for the foreseeable future, although
confidence in the fundamentals of the business remain very strong. Future
distributions will be assessed by the Trustees moving forward upon review of
Cargojet's customer volumes and financial performance. The distribution will
be paid to unitholders of record at the close of business on July 31, 2008 and
will be payable on or before August 15, 2008.
    For those unit holders holding units outside a tax deferred plan, the
Fund estimates that 96% of the distributions made in 2008 will be treated as
taxable income and the balance as a return of capital. The proportion of these
figures may change when the actual results for the fiscal year are calculated.

    Cargojet is Canada's leading provider of time sensitive overnight air
cargo services. Cargojet operates its network across North America,
transporting over 885,000 pounds of time sensitive air cargo each business
night, utilizing a fleet of thirty-three 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. Reference should be made to the issuer's most recent Annual
Information Form filed with the Canadian securities regulators, and its most
recent Annual Consolidated Financial Statements and Quarterly Financial
Statements and Notes thereto and related Management's Discussion and Analysis
(MD&A), for a summary of major risks. 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,
other than as required by applicable securities laws. In the event the issuer
does update any forward-looking statement, no inference should be made that
the issuer will make additional updates with respect to that statement,
related matters, or any other forward-looking statement.

    %SEDAR: 00022068E

For further information:

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

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