General Donlee Income Fund Announces $50.0 Million Offering of Convertible Debentures

Toronto, Canada, May 31, 2007 - 

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE 
UNITED STATES.

General Donlee Income Fund ("General Donlee") (TSX:GDI.UN) announced today 
that it has entered into an underwritten bought deal agreement with a 
syndicate of underwriters led by National Bank Financial Inc. and CIBC 
World Markets Inc. under which it will issue $50.0 million principal 
amount of convertible unsecured subordinated debentures due 2014 (the 
"Debentures") with a coupon rate of 7.00% per annum payable semi-annually 
on June 30 and December 31, commencing on December 31, 2007. The 
Debentures will mature on June 30, 2014.

Each $1,000 principal amount of the Debentures will be convertible at any 
time prior to maturity or the date fixed for redemption, at the option of 
the holder, into approximately 76.34 fund units of General Donlee (the 
"Fund Units") at a conversion price of $13.10 per Fund Unit.

The Debentures will be offered in all provinces and territories of Canada. 
The offering is subject to normal regulatory approval and is expected to 
close on or about June 20, 2007. General Donlee intends to use the net 
proceeds of the Offering for funding acquisitions, repayment of existing 
senior debt and general corporate purposes including expansionary capital 
expenditures.

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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