Canadian Management: C$ Income from Trusts

UNDERWATER FEARS = = = ??

Canadian Income Management Trust suspends distributions

2006-12-19 18:10 ET - News Release

An anonymous director reports

CANADIAN INCOME MANAGEMENT TRUST 'TSX:CNM.UN' SUSPENDS DISTRIBUTIONS; CANADIAN INCOME MANAGEMENT INC. 'TSX:CAI.DB' SUSPENDS MANAGEMENT FEES

The board of directors of Canadian Income Management CIM Ltd., the administrator of Canadian Income Management Trust, has suspended its monthly distribution payment to unitholders until further notice, commencing with the suspension of distribution payment to unitholders of record of the trust as of Dec. 29, 2006.

This announcement is the result of a decision by the board of directors of Canadian Income Management Inc., in its capacity as general partner of Canadian Income Management LP, that it will not be making the Dec. 29, 2006, payment on the residual units of the partnership (99 per cent of which are held by the trust) until further notice, due to current market conditions and the corporation's obligations in respect of the debentures.

The board of directors of the trust also announces that the trust will not be making payment of distributions for the period of July 1, 2006, to Sept. 30, 2006.

The board of directors of the corporation, in its capacity as general partner of the partnership, announces that, effective Jan. 1, 2007, the management fees payable to Pro-Vest Management Inc., for management services provided to the partnership under the terms of the partnership management agreement, dated Feb. 21, 2006, have been suspended until further notice.

These prudent measures have been taken in order to enhance the net asset value of the trust and preserve the integrity of the debentures. The board of directors of the trust and the corporation will review future distribution policy and management fee payments on a quarterly basis, beginning March 31, 2007, to ensure consideration the best interests of unitholders and debentureholders.