Company Taken Over

Effective November 15, 2006, SCI Income Trust was taken over by Simmons Bedding Company for a cash price of $16.25 per unit. Of this amount, $9.48608 per unit represented capital gains, and $0.02701 per unit represented other taxable income, which leaves the redemption proceeds per unit at $6.73691. Please refer to http://www.simmonscanada.com/Eng/flash_content/corp/2006taxes.html for a detailed description of this event.