Exchange Income Corporation announces closing of offering

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/

WINNIPEG, April 30 /CNW/ - Exchange Income Corporation (TSX:EIF.UN) (the "Corporation") announced today that it has closed its previously announced bought deal offering (the "Offering") of 7 Year 6.5% Series H Convertible Senior Secured Debentures (the "Debentures"). At the closing of the Offering the Corporation issued $30,000,000 principal amount of Debentures to the underwriters for the Offering.

The syndicate of underwriters was co-led by National Bank Financial Inc. and CIBC World Markets Inc. and also included TD Securities Inc., Wellington West Capital Inc. and Raymond James Ltd.

The Corporation intends to use the net proceeds of the Offering to reduce the indebtedness of the Corporation, including its revolving credit facilities and certain other debt of the Corporation.

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.exchangeincomecorp.ca.

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 disclosure documents filed by the Corporation 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.

%SEDAR: 00028662E

For further information: Mike Pyle, President and CEO, Exchange Income Corporation, [phone], [email protected]; Joe Racanelli, Investor Relations, The Equicom Group Inc., [phone] Ext. 243, [email protected]