Company Taken Over

Effective November 18, 2008, Connor Bros Income Fund was acquired for $8.50 per unit by Centre Partners Management LLP. Canadian taxable unitholders will realize a gain (loss) of the amount that Cdn$8.50 per unit less any stub period income distribution received per unit exceeds (is less than) the cost of the units disposed in the wind up. Any stub period income distribution is taxed as any other trust income.