IBI Income Fund announces closing of private placement for gross proceeds of $14.5 million


    TORONTO, May 28 /CNW/ - IBI Income Fund (TSX: IBG.UN) ("IBI"), announced
today it has closed the previously announced private placement financing (the
"Financing") of 775,200 trust units ("Units") at $12.90 per Unit for gross
proceeds of $10.0 million and the concurrent purchase by IBI Group Management
Partnership (the "Partnership") of 232,558 Units for proceeds of $3.0 million.
In addition, IBI issued 116,280 Units for gross proceeds of $1.5 million
pursuant to the Over-allotment Option which was granted to Raymond James Ltd.
and fully exercised. The total gross proceeds of the financings were $14.5
million. The Units were sold pursuant to prospectus and registration
exemptions and will be subject to resale restrictions, including a four month
restricted period. As a result of the Financing and concurrent purchase, the
Partnership's ownership interest in IBI is 25.6%.
    IBI intends to use the net proceeds for general corporate purposes,
including repayment of debt.

    About IBI Income Fund

    The Fund holds an indirect 74.4% 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
25.6% 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 46.9% 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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