Exchange Industrial Income Fund announces retirement, acquisitions and new offering


    WINNIPEG, July 11 /CNW/ - Exchange Industrial Income Fund (TSX:EIF.UN)
("EIIF") announced today that effective September 1, 2008, Bill Wehrle will be
retiring as the President of Perimeter Aviation. Mr. Mark Wehrle, the current
general manager, will become the President upon Bill's retirement. Bill
founded the airline in 1960 and has continually been the driving force behind
its growth and success. Mike Pyle, the Chief Executive Officer of EIIF,
stated, "Under Bill's direction, Perimeter has grown from a small flight
school to a diverse airline with revenues in excess of $50 million and
significant market share in both scheduled and medevac services across
Manitoba. We really could not have had a better vendor for our first
acquisition than Bill. Many private owners have trouble dealing with the
administration and approval processes of a public company, but Bill made the
transition like he had operated in a public entity his entire life. Prior to
the acquisition by EIIF, Bill had turned the day to day operations over to
Mark. Bill provided strategic guidance from his home in Victoria, British
Columbia, making regular trips to Winnipeg to keep his finger on the pulse of
the company. He agreed to stay on to assist us after the acquisition and with
the rapid growth at Perimeter ended up working much longer hours than before
he sold the company. Few vendors sell their company, and then increase their
own workload, and that is exactly what Bill did, without giving it a second
thought. The growth at Perimeter and ultimately at EIIF is clearly the result
of his efforts."
    Bill will be staying on as a director of EIIF Management GP, and will
also be a special advisor to EIIF on aviation operations. Mike Pyle also
remarked, "Perimeter will be in great hands with Mark. He has a lifetime of
experience in the aviation industry and has been groomed for this new
position. Mark's promotion is the natural next stage for the continued growth
at Perimeter."
    In continuing its focus on strategic acquisitions, EIIF also announced
that it had entered into a series of agreements to acquire airplane hangars in
Winnipeg and Island Lake, Manitoba as well as certain assets of a discontinued
airline. Upon satisfactory completion of due diligence, Keewatin Air will
acquire a hangar and terminal facility that is adjacent to the James
Richardson International Airport and Perimeter will acquire facilities in
Island Lake for use in its medevac operations.
    EIIF also announced today that it has filed a preliminary short form
prospectus dated July 10, 2008 to qualify the distribution of 5 Year Series E
Subordinate Secured Debentures (the "Debentures") in the minimum aggregate
principal amount of $5,000,000 and the maximum aggregate principal amount of
$10,000,000 (the "Financing").  The Financing will be made on a commercially
reasonable best efforts basis by Wellington West Capital Inc. as agent. The
Financing is expected to close on or about July 30, 2008 and is subject to
regulatory approval.
    The interest rate of the Debentures will be determined by EIIF and
Wellington West Capital Inc. in the context of the market.
    The Debentures have not been registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirement. This press release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of the
securities in any state in which such offer, solicitation or sale would be

    The statements contained in this news release that are forward-looking
are based on current expectations and are subject to a number of uncertainties
and risks, and actual results may differ materially. These uncertainties and
risks include, but are not limited to, the dependence of Exchange Industrial
Income Fund on the operations and assets currently owned by it, the degree to
which its subsidiaries are leveraged, the fact that cash distributions are not
guaranteed and will fluctuate with the EIIF's financial performance, dilution,
restrictions on potential future growth, the risk of unitholder liability,
competitive pressures (including price competition), changes in market
activity, the cyclicality of the industries, seasonality of the businesses,
poor weather conditions, and foreign currency fluctuations, legal proceedings,
commodity prices and raw material exposure, dependence on key personnel, and
environmental, health and safety and other regulatory requirements. Further
information about these and other risks and uncertainties can be found in the
disclosure documents filed by Exchange Industrial Income Fund with the
securities regulatory authorities, available at

    The Toronto Stock Exchange has neither approved nor disapproved the
    contents of this press release.

For further information:

For further information: Contact: Mike Pyle, CEO, Exchange Industrial
Income Fund, 1067 Sherwin Road, Winnipeg, MB, R3H 0T8, Phone: (204) 982-1850,
Fax: (204) 982-1855, E-mail:

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