Unitholders approve plan to merge MINT Income Fund and STARS Income Fund

    TORONTO, Aug. 12 /CNW/ - (TSX: STZ.UN) - A special meeting of unitholders
of STARS Income Fund ("STARS") was held today at which over 90% of the
unitholders of STARS present in person or represented by proxy voted in favour
of a special resolution authorizing the merger of MINT Income Fund ("MINT")
and STARS, with MINT being the continuing Fund. The merger is expected to take
place on September 25, 2009. Completion of the merger is subject to all
regulatory requirements and customary closing conditions being satisfied.
    The merger is intended to provide unitholders of both Funds the
opportunity to hold units of a continuing merged Fund with a larger market
capitalization, potential increased trading liquidity and a lower expense
ratio. The merger will be effected by a tax-deferred "rollover" using an
exchange ratio based on the relative net asset values of MINT and STARS at the
time of the merger.
    MINT trades under the symbol MID.UN on the Toronto Stock Exchange and
currently pays out a monthly distribution at an annualized rate of $0.84 per
unit. It is expected that the continuing merged Fund will also pay
distributions at this level.
    In addition to the approval of the merger, unitholders of STARS approved
a special resolution authorizing the board of directors of the manager of
STARS, prior to the merger, to broaden STARS' investment mandate to invest in
high income producing securities other than income trusts in order to
facilitate the achievement of the Fund's investment objectives. Unitholders
also approved certain updating amendments to the declaration of trust at the
meeting. Details regarding the amendments to the declaration of trust are set
out in detail in the Joint Information Circular dated July 13th, 2009 which
was delivered to unitholders in July 2009.

    Certain statements in this press release may be viewed as forward-looking
statements. Any statements that express or involve discussions with respect to
expectations, beliefs, plans, intentions, projections, objectives, assumptions
or future events are not statements of historical fact and may be
forward-looking statements. Statements which may constitute forward-looking
statements relate to the proposed timing of the merger and the expected
benefits of the merger. In addition, some of the forward-looking information
contained in this press release is based on historical information concerning
the distributions and dividends paid on the securities of issuers historically
included in the portfolio of MINT Income Fund. Actual future results,
including the amount of distributions paid by the Fund, may differ from the
annualized distribution rate. Specifically, the income from which
distributions are paid may vary significantly due to: changes in portfolio
composition; changes in distributions and dividends paid by issuers of
securities included in the Fund's portfolio from time to time; there being no
assurance that those issuers will pay distributions or dividends on their
securities; the declaration of distributions and dividends by issuers of
securities included in the portfolio will generally depend upon various
factors, including the financial condition of each issuer and general economic
and stock market conditions; the level of borrowing by the Fund; and the
uncertainty of realizing capital gains. Forward-looking statements are subject
to a variety of risks and uncertainties which could cause actual events or
results to differ from those reflected in the forward-looking statements
including as a result of changes in the general economic and political
environment, changes in applicable legislation, and the performance of the
Fund. Such forward-looking statements are only predictions; actual events or
results may differ materially and the Fund does not undertake any obligation
to update such statements.

For further information:

For further information: on each of the Funds, please visit our website
at www.middlefield.com or contact your financial advisor or the undersigned:
Nancy Tham, Senior Vice President, (416) 847-5349

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