Company Taken Over

Effective October 17, 2007, E.D. Smith Income Fund was taken over by TreeHouse Foods Inc. Unitholders received proceeds of disposition of $6.8511 per unit plus a special distribution of $2.3245 per unit, $1.756 of which was designated as return of capital. Unitholders of record October 15, 2007, received $0.1206 on November 30, 2007, which appears to be part of the disposition proceeds of $6.8511 per unit and represents funds that had been placed in escrow but not required to cover additional costs of the takeover. Unitholders will receive a tax information slip in respect of the Fund's 2007 taxation year including the Special Distribution which will reflect this treatment for tax purposes. Due to the somewhat complex nature of the terms of this takeover we urge unitholders to consult their own tax advisors before acting on any information contained herein.