Livingston International completes C$250 million acquisition of PBB Global Logistics

On January 11, 2006, Livingston International Income Fund completed its acquisition of all of the assets of PBB Global Logistics Income Fund for approximately C$250 million, following Livingston's October 2005 unsolicited takeover bid for the units of PBB. This initial offer was subsequently amended by Livingston to provide PBB unitholders with the option of tendering to the offer or depositing their units into a tax-free merger alternative. All participating unitholders also approved, by tendering or depositing their units, a special resolution that authorized, among other things, the merger of Livingston and PBB.

Under the terms of the merger, the redemption of all of the issued and outstanding PBB units occurred on January 12, 2006, and former PBB unitholders received their Livingston units payable under the offer and merger, as applicable, shortly thereafter. PBB was subsequently delisted from the TSX.

The combined fund is expected to have a market capitalization of approximately C$620 million. Livingston also announced an increase in its regular monthly distribution by 10 percent to C$0.142 per unit, commencing with the monthly distribution expected to be declared on or after March 15, 2006. On an annualized basis, the increased monthly distribution represents C$1.70 per Livingston unit.

In connection with the acquisition, Livingston also entered into a new credit facility for the purposes of the combined businesses with a syndicate of lenders in the amount of up to C$250 million for a term of five years, consisting of a revolving line of credit available for operations, capital expenditures and acquisitions, as well as a term facility.

Scotia Capital acted as financial advisers to Livingston. CIBC World Markets and National Bank Financial acted as financial advisers for PBB.