General Donlee Signs New 4-Year $14.0 Million Aerospace Contract

Toronto, Canada, Jul 12, 2007 - General Donlee Income Fund (TSX: GDI.UN)
announced today that the Industrial Products division has recently signed a
new 4-year $14.0 million aerospace contract to supply landing gear components
to a local Aerospace manufacturer. The order will add approximately
$8.0 million to the current sales order backlog which represents orders
scheduled for delivery over the next 2-3 years. With the addition of this
contract to the Company sales order backlog, the balance outstanding for
potential future delivery now totals $61.7 million.

    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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