General Donlee Income Fund Announces Normal Course Issuer Bid

Toronto, Canada, Aug 18, 2006 - General Donlee Income Fund (TSX: GDI.UN)
announced today that it has filed a notice with the Toronto Stock Exchange and
received its approval to purchase, through the facilities of the Toronto Stock
Exchange for cancellation, up to 447,350 of its units, representing
approximately 5% of the 8,947,000 issued and outstanding units. Purchases may
commence on August 21, 2006, and will terminate on August 20, 2007. The
Trustees and senior management of General Donlee are of the opinion that from
time to time the purchase of units at the prevailing market price would be a
worthwhile investment and in the best interests of the Fund and its
unitholders. General Donlee has not previously purchased its units under a
normal course issuer bid.

    Company Profile

    The Fund is a trust established to hold the securities of General Donlee
Limited ("General Donlee" or the "Company"). General Donlee is a leading
diversified manufacturer of precision-machined products for the military,
commercial and general aerospace industries, and also a specialist in the
manufacture of precision-machined products for the industrial products and
power generation industries. The Fund was established on March 14, 2002 and
commenced operations on May 3, 2002, when it completed an initial public
offering and purchased all of the outstanding shares of a predecessor company
of General Donlee.
    General Donlee's operating strategy focuses on targeting niche markets
for products that are aligned with its sophisticated manufacturing
capabilities and skilled workforce. Management believes that the future growth
of the Company is dependent on its ability to leverage these resources into
long-term contracts for complex machining programs.

For further information:
Ralph Barnes
Director, Investor Relations,
tel: 416.743.4417
email: rbarnes@generaldonlee.com

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