MONTREAL, October 20, 2006 – TransForce Income Fund (TSX: TIF.UN), the leader in the
Canadian transportation and logistics industry, today announced that its Board of Trustees has
declared a special distribution of 0.0155 additional trust units for each trust unit outstanding,
following the successful sale by the Fund of the hazardous waste operations of its subsidiary
Services Matrec Inc. earlier this month. Based on the closing price of the Fund’s units on the
Toronto Stock Exchange on October 19, 2006, the value of the special distribution is $0.2627 per
unit. The Fund will issue 1,114,592 additional trust units, subject to rounding down of fractional
units. There are currently 71,909,189 trust units issued and outstanding.
The divested operations were considered non-core by Matrec management and were sold for cash
proceeds of $31.8 million. Matrec will focus on the company’s larger remaining operations in solid
waste management and recycling.
The special distribution is in addition to the Fund’s regular distribution of $0.1275 per unit. The
special and regular distributions are both payable on November 15, 2006 to unitholders and holders
of Tracking Shares of record on October 31, 2006.
“Whether through organic growth, acquisitions or divestitures, TransForce is in business to create
value for unitholders,” said Alain Bédard, Chairman, President and Chief Executive Officer of
TransForce Income Fund. “We are pleased to be able to deliver the additional value generated by
this transaction promptly to our unitholders.”
The special distribution will be paid to unitholders through the issuance of additional trust units and
to holders of Tracking Shares through the economic equivalent in cash. For income tax purposes,
the value of the additional trust units will be calculated based on the average closing price of the
Fund’s units on the TSX for the five trading days up to and including November 14, 2006, the
period immediately prior to the distribution date. The issuance of the additional trust units is
subject to regulatory approval, including that of the TSX.
The special distribution will be taxable as “other income” to Canadian residents. Unitholders and
holders of Tracking Shares of TransForce who are not residents of Canada are advised to seek tax
advice concerning this transaction and special distribution.