General Donlee Income Fund Announces Unitholder Approval of Conversion to a
Corporation and Announces the Re-appointment of a Trustee to the Board

TORONTO, June 14 /CNW/ - General Donlee Income Fund (the "Fund") (TSX: GDI.UN) is pleased to announce that the previously announced proposal to convert the Fund into a corporation pursuant to a plan of arrangement (the "Arrangement") under the Canada Business Corporations Act was approved at the Annual and Special Meeting of Unitholders held today. Subject to the final approval of the Nova Scotia Supreme Court, and other required approvals, it is anticipated that the Arrangement will be become effective on or about January 1, 2011. Pursuant to the Arrangement, each holder of Fund units will receive for each Fund unit held one common share of General Donlee Canada Inc. ("GDI"). The shares of GDI have been conditionally approved for listing on the Toronto Stock Exchange.

The Fund is further pleased to announce the re-appointment of Melinda Lee to the board of trustees of the Fund and to the board of directors of General Donlee Limited ("General Donlee") effective today. Ms. Lee served as a trustee of the Fund and director of General Donlee between June 2006 and November 2009.

About General Donlee Income Fund

The Fund is a trust established to hold the securities of General Donlee, a leading diversified manufacturer of precision-machined products for the military, commercial and general aerospace industries, and a specialist in the manufacture of precision-machined products for the industrial products and power generation industries. General Donlee's operating strategy focuses on targeting niche markets for products that are aligned with its sophisticated manufacturing capabilities and skilled workforce.

Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking information and statements are identified by words or phrases such as "anticipates", "expects", "believes", "estimates", "intends", "could", "may", "plans", "will" and other similar expressions or the negative of these terms and include, without limitation, forward-looking statements made in this press release relating to expected completion and timing of the Arrangement and listing on the Toronto Stock Exchange. Actual events or results may differ materially. Forward-looking statements included in this press release are made based on management's belief as well as assumptions made by, and information currently available to, management of the Fund. While such beliefs and assumptions are considered reasonable by the Fund, they are inherently subject to significant business, economic and competitive uncertainties and contingencies. A number of important factors could cause actual results to differ materially from those projected in the forward-looking statements. These uncertainties and risks include, but are not limited to changes in laws and regulations affecting the Fund or GDI, general economic and business conditions in the markets affecting the Fund or GDI, failure to satisfy the conditions of the conversion, inability to meet stock exchange listing requirements and inability to obtain required consents, permits or approvals for the conversion. The foregoing list is not exhaustive. In addition, these forward-looking statements relate to the date on which they are made. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, the Fund cannot assure Unitholders that actual results will be consistent with these forward-looking statements, and, except as required by law, the Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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For further information: Gerald Thain, Chief Financial Officer, Telephone: [phone], E-mail: [email protected], Web site: www.generaldonlee.com