Company Taken Over

Effective July 6, 2007, Canada Cartage Diversified Income Fund was taken over by Nautic Partners VI, LP for a cash price of $11.30 per unit. Unitholders of record on July 5, 2007 received a special distribution of $2.11 per unit, $2.10 of which was designated as capital gain and $0.01 was deemed to be investment income. We believe that the distribution of the $2.10 capital gain makes up part of the $11.30 takeover price, but there is no press release from the company that confirms this. Please refer to Important User Notes & Tips #9.