Entertainment One announces unitholder approval to sell all operations and planned redemption of all fund units

    TORONTO, March 23 /CNW/ - Entertainment One Income Fund (TSX: EOF.UN)
("Entertainment One" or the "Fund"), a major distributor of home entertainment
products, announced today that its unitholders approved the sale of
Entertainment One's Canadian and US operations to Entertainment One Ltd.
(formerly, Earl Street Capital Ltd.) ("EO Ltd."), a company established for
the purpose of this transaction by Marwyn Investment Management LLP, a London,
UK based equity firm. Unitholders also approved related amendments to the
declaration of trust of the Fund. In excess of 98% of the unitholders and 100%
of fund special unitholders represented at the meeting voted to approve the
special resolution. In addition, the resolution in question was approved by
the "majority of the minority".
    Pursuant to the terms of the business acquisition agreement announced on
February 14, 2007, completion of the transaction remains subject to customary
conditions including receipt of all necessary approvals including from
regulatory authorities and the TSX; that the purchase and sale be completed on
or before March 30, 2007; and certain other conditions, including the
admission of EO Ltd.'s shares for trading on AIM which is conditional upon the
purchaser completing its debt and certain equity financings. Entertainment One
has been advised by the purchaser that it expects to meet the conditions for
admission of its shares for trading on AIM.
    Following the completion of the sale of its operations (currently
anticipated to occur on March 29, 2007), the trustees of Entertainment One
intend to satisfy all remaining obligations of the Fund and its subsidiaries
not sold in the transaction. As soon as practical thereafter, the trustees
intend to redeem all the units of Entertainment One, in one or more tranches,
for aggregate cash payments of approximately $3.60 per unit.
    Assuming the completion of the sale of its operations, the units of
Entertainment One will be delisted shortly thereafter. The trustees of the
Fund currently plan to redeem all of the issued and outstanding units of the
Fund and to distribute $3.57 per unit on April 2, 2007 to unitholders of
record as at the close of business on March 30, 2007.
    The trustees of the Fund intend to establish a reserve for the remaining
$0.03 per unit to be held until all necessary tax and regulatory processes
have been completed. Once such processes have been completed and any
associated expenses are paid, the remaining amounts of the reserve, if any,
will be paid to unitholders of the Fund of record as of March 30, 2007.

    About Entertainment One Income Fund

    Entertainment One Income Fund (formerly ROW Entertainment) is Canada's
largest wholesale distributor of DVDs, CDs, video games, and accessories to
small and large retail chains and independent retailers across the country. In
addition to wholesaling and Internet fulfillment, Entertainment One owns and
operates more than 90 CD Plus retail outlets, making it the largest specialty
retailer of movies and pre-recorded music in "secondary" markets (areas
underserved by other retailers). Entertainment One also operates a retail
Internet sales division, cdplus.com, and it recently purchased Koch
Entertainment, one of the largest U.S. independent record labels independent
distributors of music and video content in the United States. To find out more
about Entertainment One (TSX: EOF.UN), visit our website at

    Forward-Looking Statements

    Certain forward-looking statements are made in this news release,
including statements regarding possible future business. Investors are
cautioned that such forward-looking statements involve risks and uncertainties
detailed from time to time in the Fund's periodic reports filed with Canadian
regulatory authorities. Many factors could cause actual results, performance,
or achievements to be materially different from any future results,
performance, or achievements that may be expressed or implied by such
forward-looking statements. Entertainment One Income Fund does not undertake
to update any forward-looking statements, oral or written, made by itself or
on its behalf.

For further information:

For further information: Pete Pigott, Chief Financial Officer, (905)
282-7877, ppigott@entertainmentone.ca; For Investor and Media Relations,
contact Wertheim + Co., (416) 594-1600, Richard Wertheim (ext. 223) or

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