General Donlee Income Fund Announces a 14% Increase in Monthly Distributions

Toronto, Canada, Feb 14, 2007 - 

Record performance and solid prospects lead to 45% distribution rate increase in last 6 months
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General Donlee Income Fund (TSX: GDI.UN)announced today that it has declared 
a cash distribution of $ 0.08 per Unit for the month of January 2007, 
representing a 14% increase in the company's monthly distributions. This 
is the second time General Donlee has increased its distributions in the 
last six months, and represents an annualized distribution rate of $0.96 
per Unit. With this increase, General Donlee's distribution rate has 
grown by 45% in the last six months.

    The distribution announced today is payable on February 28, 2007 to
Unitholders of record at the close of business on February 23, 2007. The
ex-distribution date for the distribution is February 21, 2007.

    "General Donlee Limited is delivering record performance which has
enabled this increase in distributions," said Stan Spavold, Chairman of
General Donlee Income Fund. "With the excellent returns the Fund has been
delivering and the solid prospects for the business, Management and Trustees
are confident in setting the monthly distribution at this level."

    In the last two years, General Donlee has increased its distributions
significantly: in fiscal 2005, the fund's total distributions were $0.297 per
Unit, and in fiscal 2006, they grew to $0.735 per Unit. The further increase
announced today, to an annualized distribution of $0.96 per Unit, represents a
30% increase over last year's distribution rate and a 223% increase over two
years ago, and reflects the ongoing growth and strong performance of General
Donlee's business.

    "The Trustees would like to acknowledge General Donlee's employees and
management team for producing these outstanding results," added Spavold.
    General Donlee Income Fund pays cash distributions to Unitholders near
month end, for the prior month, with a record date that is usually three
business days earlier. Holders of Units who are non-residents of Canada are
required to pay all withholding taxes payable in respect of any distributions
of income by the Fund.

    General Donlee Income Fund is a trust established to hold the securities
of General Donlee Limited, which is a leading diversified manufacturer of
precision-machined products for the military, commercial and general aerospace
industries and also is a specialist in the manufacture of precision-machined
products for the industrial products and power generation industries.

    Certain forward-looking statements contained in this news release are
based on information currently available to management, but are subject to a
number of uncertainties and risks that could cause actual results to differ
materially from the results discussed in the forward-looking statements. These
uncertainties and risks include, but are not limited to: dependence on
commercial aircraft sales and defence procurement, power generation sales and
sales to the industrial sector, production rates, timing of deliveries,
dependence on key customers, dependence on third party suppliers and
manufacturers, competition, product liability and warranty claims,
environmental and other government regulation, quality certification
requirements, hedging effects, interest and foreign exchange rates, leverage
and restrictive debt covenants, continued availability of credit facilities,
insurance availability and coverage, regulatory requirements, reliance on key
personnel and our skilled workforce, changes in accounting policies, the
ability to obtain orders and domestic and international economic conditions.
Further information can be found in the disclosure documents filed by General
Donlee Income Fund with the securities regulatory authorities, available at
www.sedar.com. or through the Fund's website at www.generaldonlee.com.

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

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