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TransForce Acquisition Strategy Leads to Improvement in the Second Quarter

  • Increased quarterly revenues 9% to $495.7 million
  • Increased EBITDA 4% to $64.1 million
  • Concluded strategic acquisitions in new Fleet Management & Personnel Services division

MONTREAL, August 8, 2007 - TransForce Income Fund (TSX: TIF.UN), the leader in the Canadian
transportation and logistics industry, today announced results for the second quarter, ended June
30, 2007, that demonstrate both the benefits of its acquisition strategy and the challenging
environment faced by its existing operations.

The Fund increased revenues by 9% to $495.7 million, from $455.6 million in the second quarter of
2006. EBITDA (earnings before interest, taxes, depreciation and amortization and equivalent to
operating income on TransForce’s financial statements) increased by 4% to $64.1 million in the
quarter, from $61.6 million in the same period last year. Cash flow from operating activities, before
net change in non-cash working capital balances, was $52.2 million in the second quarter,
compared with $53.8 million in the second quarter of 2006.

Distributable cash from ongoing operations was $55.2 million, compared with $57.2 million in the
second quarter of 2006. Net capital expenditure was $10.0 million in the quarter, compared with
$15.9 million in the same period last year. The Fund’s regular distribution payout ratio, or cash
distributed as a percent of cash available for distribution, was 78.0% in the second quarter of 2007,
compared with 84.5% in the same period of 2006.

“We increased revenue and EBITDA through strategic acquisitions made in the past year as we
continued to pursue opportunities to acquire good companies that will help TransForce create
long-term value for unitholders,” said Alain Bédard, Chairman, President and CEO of TransForce
Income Fund. “Overall, our existing operations have had to adjust to weaker market conditions,
particularly in the Truckload segment due to weaker demand and in oilfield services which were
affected by lower drilling activity in Western Canada.”

 

New Fleet Management & Personnel Services division

During the quarter, TransForce acquired three companies that provide clients with vehicles and
drivers and formed them into a new Fleet Management & Personnel Services division, which is now
part of the Specialized Services segment.

“The companies that we acquired in the second quarter meet our criteria in having solid track
records and management teams. They complement the other businesses in the TransForce group of
companies but are not as asset-intensive and we expect them to generate higher-than-average
returns for unitholders,” said Mr. Bédard.


 

Year-to-Date Results

TransForce increased revenues for the first half of 2007 to $960.4 million, from $889.3 million in
the first half of 2006. EBITDA also increased to $116.8 million in the first six months of 2007
compared with $110.7 million in the first six months of 2006. Cash flow from operating activities,
before net change in non-cash working capital balances, was $97.3 million in the first half of 2007
compared with $94.9 million in the same period of 2006.


Distributable cash from ongoing operations for the first half of 2007 was $100.7 million, a slight
increase from $100.1 million in the first half of 2006. Total distributions declared in the first six
months of the year were $63.9 million compared with $59.0 million in the first six months of 2006.
The Fund’s regular distribution payout ratio or cash distributed as a percent of cash available for
distribution for the year-to-date is 88.4% compared with 86.1% in the same period of 2006.

“We expect the marketplace for most of our operating companies to continue to be challenging for
the balance of the year with more competitive pressure and greater price sensitivity among our
clients,” Mr. Bédard said. “Throughout the TransForce group, we are taking the necessary steps to
adjust to these conditions.”

Recent Acquisition

Subsequent to the end of the second quarter, on August 2, 2007, TransForce announced the signing
of a letter of intent to acquire all the issued and outstanding shares of Century II Holdings Inc
(TSX: CH) whose wholly owned subsidiary, operating as ICS Courier, operates a fixed route courier
business that services more than 35,000 accounts. ICS Courier is based in Toronto and had
revenues of approximately $90 million in 2006.


 

Management Conference Call

TransForce will host a conference call for investors to discuss the results for the second quarter of
2007 today, August 8 at 5:00 pm Eastern Time. Participating from the Fund will be Alain Bédard,
Chairman, President and Chief Executive Officer, and Salvatore Vitale, Chief Financial Officer.

To participate in the teleconference, investors are invited to call 1-800-926-9793. A recording of the
call will be available until midnight August 15, 2007, by dialing 1-800-558-5253 or 416-626-4100
and entering passcode 21344435. Media are invited to participate in listen-only mode and to use
the media contact listed below for further information.

Financial Statements

The included financial statements for the quarters ended June 30, 2007 and 2006 and are an
integral part of this news release.