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Exchange Income Corporation announces dividend reinvestment plan

^{Published on 2009-08-20 12:27:57, Last Modified on 2009-08-20 12:27:59 - Market Wire}
 

 WINNIPEG, Aug. 20 /CNW/ - Exchange Income Corporation (TSX: EIF) ("EIC" or the "Corporation") announced today that it has adopted a dividend reinvestment and cash purchase plan (the "DRIP") effective for its regular monthly dividend payable in October, 2009 to its shareholders of record on September 30, 2009. The DRIP provides eligible shareholders of EIC with the opportunity to reinvest the dividends they receive on common shares ("EIC Shares") of EIC in additional EIC Shares at a discount to the market price of the EIC Shares and without incurring brokerage fees or commissions. Only shareholders of EIC who are residents of Canada are eligible to participate in the DRIP. Under the terms of the DRIP, eligible shareholders may elect to reinvest distributions paid on EIC Shares in additional EIC Shares at a price equal to 97% of the volume weighted average closing trading price (the "Average Closing Price") of the EIC Shares on the Toronto Stock Exchange (the "TSX") for the five trading days preceding the dividend payment date. The DRIP also permits eligible shareholders of EIC to purchase new EIC Shares at a price equal to the average closing trading price of the EIC Shares on the TSX by way of an additional cash payment. The purchase price for additional cash purchases will be the Average Closing Price of the EIC Shares and no brokerage fees or commissions will apply to such purchases under the DRIP. The minimum permitted monthly optional cash purchase is $100, and no participant may make optional cash purchases in excess of $10,000 in one calendar year. The aggregate number of EIC Shares purchased pursuant to optional cash payments during any financial year is subject to a maximum of two (2) percent of the total number of outstanding EIC Shares at the commencement of such financial year. EIC Shares purchased through the DRIP will be issued directly from the treasury of EIC. Registered shareholders of EIC may enroll by completing the enrollment form which will be made available on the website of EIC at [ www.exchangeincomecorp.ca ] commencing in September, 2009 and submitting it to CIBC Mellon Trust Company at the address set forth in the enrollment form. Beneficial shareholders of EIC are encouraged to contact their broker or other intermediary for enrolment information. About Exchange Income Corporation Exchange Income Corporation is a diversified, acquisition-oriented corporation, focused on opportunities in the industrial products and transportation sectors which are ideally suited for public markets except for their size. The strategy of the Corporation is to invest in profitable, well-established companies with strong cash flows operating in niche markets in Canada and/or the United States. The Corporation is currently operating in two niche business segments: aviation and specialty manufacturing. The aviation segment consists of Perimeter Aviation LP., Keewatin Air LP and Calm Air International LP. and the specialty manufacturing segment consists of Jasper Tank Ltd., Overlanders Manufacturing LP, Water Blast Manufacturing LP, and Stainless Fabrication, Inc. For more information on Exchange Income Corporation, please visit [ www.eiif.ca ]. Additional information relating to the Corporation, including all public filings, is available on SEDAR ([ www.sedar.com ]). Caution Concerning Forward-Looking Statements The statements contained in this news release that are forward-looking are based on current expectations and are subject to a number of uncertainties and risks, and actual results may differ materially. These uncertainties and risks include, but are not limited to, the dependence of the Corporation on the operations and assets currently owned by it, the degree to which its subsidiaries are leveraged, the fact that cash distributions are not guaranteed and will fluctuate with the Corporation's financial performance, dilution, restrictions on potential future growth, competitive pressures (including price competition), changes in market activity, the cyclicality of the industries, seasonality of the businesses, poor weather conditions, and foreign currency fluctuations, legal proceedings, commodity prices and raw material exposure, dependence on key personnel, and environmental, health and safety and other regulatory requirements. Further information about these and other risks and uncertainties can be found in the management information circular dated June 22, 2009 filed by the Fund with the securities regulatory authorities, available at [ www.sedar.com ]. The Toronto Stock Exchange has neither approved nor disapproved the contents of this press release. 

For further information: Mike Pyle, President and CEO, Exchange Income Corporation, (204) 982-1850, [ mpyle@eig.ca ]; Alice Dunning, Investor Relations, The Equicom Group Inc., (416) 815-0700 or 1-800-385-5451 ext. 255, [ adunning@equicomgroup.com ]