Livingston International Income Fund announces reduced distributions to conserve cash and maintain financial flexibility

    TORONTO, Jan. 14 /CNW/ - Livingston International Income Fund (TSX:
LIV.UN) today announced that it has declared a cash distribution of $0.042 per
unit, payable on February 27, 2009 to unitholders of record at the close of
business on January 30, 2009 for the 31-day distribution period from January 1
to 31, 2009 inclusive. The ex-dividend date for this distribution will be
January 28, 2009.
    The Fund's board of trustees has reduced the monthly distribution to
unitholders from $0.142 per unit effective starting with the January
distribution to preserve the Fund's financial strength and allow it to respond
to both the risks and the opportunities presented by the current economic
environment. On an annualized basis, distributions are reduced from $1.70 per
unit to $0.50 per unit.
    "The board and management recognize the importance of distributions to
unitholders but the primary consideration must be the long-term value of the
Fund. While Livingston does not face the critical situation that has led some
other trusts to lower or eliminate their distributions, during this period of
continued economic uncertainty, we believe that reducing monthly distributions
is a prudent measure to strengthen the Fund's balance sheet and maximize
liquidity," said Livingston president and CEO Peter Luit. "We expect the
stronger cash balances that will result from this step will give Livingston a
competitive advantage. Along with other actions at the operating company,
maintaining more cash should allow the Fund to reduce the regular use of its
credit facilities to finance remittances to governments at the end of the
month on behalf of clients. Additionally, it should provide the Fund with
enhanced flexibility to pursue potential strategic opportunities."
    Among the actions taken to tightly control operating costs are staff
reductions, made primarily in the Fund's Managed Services business, to adjust
to the rapid depreciation of the Canadian dollar against the U.S. currency in
past months, and declining volumes in Canadian and U.S. brokerage services, as
well as reductions in the transportation and logistics segment.
    It is Livingston International Income Fund's distribution policy to pay
monthly distributions to unitholders on the last business day of the following
month. Monthly distributions will typically be declared on or about the 15th
day of the distribution month, with the record date to be the last business
day of that month.
    Unitholders who are non-residents of Canada will be required to pay all
withholding taxes payable in respect of any distributions by the Fund, whether
such distributions are in the form of cash or additional units.

    About Livingston

    Livingston International Income Fund is a trust that holds the securities
of Livingston International Inc., a leading North American provider of
customs, transportation and integrated logistics services. Headquartered in
Toronto, Ontario, Livingston has more than 2,500 employees located at over 125
key border points, seaports, airports and other strategic locations across
Canada and the United States.

    Forward-looking statements

    This release contains forward-looking statements, which reflect
management's current beliefs and expectations, and that involve assumptions
about expected future events or results that are subject to inherent risks and
uncertainties. There is significant risk that assumptions and other
forward-looking statements will not prove to be accurate. Many factors could
cause actual future results, conditions or events to differ materially from
the results or outcomes expressed, including risks related to trade volumes,
deterioration of economic conditions, currency volatility and continued
availability of credit facilities and bonds, among others. Furthermore, given
prevailing uncertain economic conditions, there can be no assurance that
distributions will be able to be maintained at the stated reduced level or
that suitable strategic opportunities will present themselves. Investors are
cautioned not to place undue reliance on assumptions or forward-looking

For further information:

For further information: Dawneen MacKenzie, vice-president, public
affairs, 1-800-387-7582 ext. 3109

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