IBI Income Fund announces closing of previously disclosed public offering of
convertible debentures



TORONTO, Sept. 30 /CNW/ - IBI Income Fund (TSX: IBG.UN) ("IBI"), announced today it has closed the previously announced issuance of convertible unsecured subordinated debentures on a bought deal basis to a syndicate of underwriters led by CIBC, National Bank Financial and TD Securities Inc. As a result of the exercise on closing of the over-allotment option granted to underwriters, the total gross proceeds of the offering were $46,000,000.

The Debentures have a maturity date of December 31, 2014. The Debentures have a coupon of 7% per annum and will pay interest semi-annually in arrears on June 30 and December 31 in each year commencing on December 31, 2009. Each $1,000 principal amount of Debenture is convertible into approximately 52.1648 units of IBI, at any time, at the option of the holder, representing a conversion price of $19.17 per unit.

IBI intends to use the net proceeds from the Financing for debt repayment and for general corporate purposes.

About IBI Income Fund

The Fund holds an indirect 72% interest in IBI Group, a partnership which provides professional services, including planning, design, implementation, analysis of operations and other consulting services in relation to four main areas of development, being urban land, building facilities, transportation networks and systems technology. The remaining 28% of IBI Group, represented by Class B Units, is owned by IBI Group Management Partnership. On a fully diluted basis, IBI Group Management Partnership has a 46% interest in the Fund.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of a prospectus, nor shall there be any sale of the Units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws of any such state, province or other jurisdiction. The Units of IBI Income Fund have not been, and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold or delivered in the United States absent registration or an application for exemption from the registration requirements of U.S. securities laws.

%SEDAR: 00021044E


For further information: For further information: Allan J. Kamerman, IBI Income Fund, 230 Richmond Street West, 5th Floor, Toronto, ON, M5V 1V6, Tel: (416) 596-1930, Fax: (416) 596-8024

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IBI Group Inc.

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