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General Donlee Income Fund Raises Distributions by 13% - Distributions Up 64% in Last Nine Months
Toronto, Canada, May 9, 2007 - General Donlee Income Fund (TSX: GDI.UN) announced
today that it has raised its monthly per-Unit distributions by 13%, declaring
a cash distribution of $ 0.090 per Unit for the month of April 2007, payable
on May 31, 2007 to Unitholders of record at the close of business on May 28,
2007. The ex-distribution date for the distribution is May 24, 2007. This
increase, which represents an annualized distribution of $1.08 per trust Unit,
is the third rise in General Donlee's distributions since August 2006, and
reflects a 64% increase in the Fund's distribution rate in the last nine
months.
"Earlier today, we issued record first quarter 2007 results, which built
on the successes we have been delivering over the last two years," said Stan
Spavold, Chairman of the Fund. "Our distributable cash in the first quarter,
for example, was up 86% over the same period last year. With General Donlee's
strong performance-which continues to gain momentum - and the positive outlook
for our industry, our Board of Trustees is confident in raising the
distributions to this new level. Our Unitholders enjoyed a 62% return on their
investment in 2006, between the solid performance of our Unit price and our
distributions - and, with today's further increase in distributions based on
the Company's strong results and positive outlook, the benefit to our
Unitholders continues to grow. We look forward to ongoing strong performance,
which will allow us to deliver even further Unitholder value."
General Donlee Income Fund pays cash distributions to Unitholders near
month end, for the prior month, with a record date, usually three business
days earlier. Holders of Units who are non-residents of Canada will be
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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