Chesswood Income Fund Announces Results for Fiscal 2006

    TORONTO, March 29 /CNW/ - Chesswood Income Fund (the "Fund") (TSX:CHW.UN)
announced today its results for its fourth quarter and the 236-day operating
period ended December 31, 2006.
    While the Fund was formed on February 16, 2006, it commenced operations
on May 10, 2006, the date of completion of the conversion of cars4U Ltd. into
the Fund, the Fund's initial public offering and the Fund's acquisition of
Pawnee Leasing Corporation ("Pawnee"), of Colorado.
    Chesswood's net investment in leases, especially at Pawnee which
generates approximately 90 per cent of the Fund's distributable cash, is a
meaningful measure of growth. At December 31, 2006, Pawnee's net investment in
leases (net of security deposits), totaled U.S.$74.8 million before reserves,
compared to U.S.$69.9 million at December 31, 2005.
    "We are very pleased with the financial results the Fund has achieved
during this first fiscal period," said Barry Shafran, CEO of the Fund. "We
experienced strong cash flows at Pawnee and growth in the portfolio, while our
Canadian businesses performed as expected."

    Results For the Period Ended December 31, 2006

    Financial Highlights For The Fund
    (in CDN $000's)
                                                 Three Mths     Year-to-Date
                                                Ended Dec. 31   Thru Dec. 31
                                                --------------  -------------

    Revenues                                       $22,083         $57,407

    Adjusted EBITDA                                 $3,781         $11,223

    Distributable Cash(1)                           $3,362          $8,549

    Distributions(2)                                $2,448          $6,258

    Distributions Per Unit                          $0.287          $0.736

    Net Income before
     Non-controlling Interest
     & Foreign Exchange                             $2,319          $6,659

    (1) - the Fund changed its method for calculating Distributable Cash. See

    (2)   includes dividends on 1,478,537 Class B and C shares of Chesswood
          US Acquisition Co Ltd. and distributions on 7,040,558 Fund units.

    Distributable Cash

    The Fund has changed the way it calculates distributable cash so that
there is greater reporting transparency between the calculation of the cash
flow that Pawnee can ultimately provide to the Fund, in accordance with its
credit agreement, and the distributable cash reporting of the Fund.
    The Fund's distributable cash was determined by adjusting the Fund's
Adjusted EBITDA to remove the impact of certain items required to calculate
net income in accordance with generally accepted accounting principles
("GAAP"), but which are generally non-cash items to flow-through entities such
as the Fund. However, the amounts which Pawnee can distribute are based on
Pawnee's net income as determined in accordance with GAAP, and therefore the
past method for calculating the Fund's distributable cash did not fully
reflect the actual amount of distributions which can be made by Pawnee.
    Under the revised method the calculation of distributable cash is based
on Pawnee's net income for GAAP purposes. This will be consistent with the
amounts Pawnee is permitted to distribute under the terms of its credit
facility and which could, in turn, be available for distribution by the Fund.
    To provide investors with a seamless transition to the revised
calculation method, the Fund has provided disclosure of its distributable cash
related information using both methods, for the balance of this fiscal year. A
summary of the two methods can be found in the Fund's Management Discussion
and Analysis accompanying the year-end financial statements. Under the old
method, distributable cash for the fourth quarter and the fiscal year-ended
December 31, 2006 were $1.3 million and $6.0 million respectively.
    Additional financial information including the audited consolidated
financial statements with accompanying notes, and Management's Discussion and
Analysis, can be found at and All of this
information can also be obtained by contacting Chesswood directly.

    Non GAAP Measures

    References to Adjusted EBITDA and Distributable Cash are not recognized
measures under Canadian GAAP and do not have standard meanings under Canadian
GAAP. Accordingly, these measures may not be comparable to similar measures
presented by other issuers.
    Please refer to Chesswood's Management Discussion and Analysis for the
period ended December 31, 2006 for additional information concerning these
measures and a reconciliation of these measures to the Fund's consolidated net
income for the period.

    About Chesswood Income Fund

    The Fund is a financial services trust with operating businesses in both
Canada and the U.S.

    This press release contains forward-looking statements that involve a
number of risks and uncertainties because they relate to events and depend on
circumstances that will occur in the future. Many factors could cause actual
results and developments to differ materially from those expressed or implied
by these forward-looking statements.


For further information:

For further information: visit; Contacts: Barry
Shafran, Chesswood Income Fund, (416) 386-3099,;
Catharine Marion (media only), Environics Communications Inc., (416) 969-2809,

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