Chesswood Income Fund Announces New Distribution Policy and Renewal of Bank Credit Facility

TORONTO, ONTARIO–(EMWNews – Aug. 20, 2008) – Chesswood Income Fund (the “Fund”) (TSX:CHW.UN), today announced that its Board of Trustees has adopted a new distribution policy effective with the last quarter of 2008.

Given the prolonged nature of uncertainty in the U.S. financial services market and the resulting challenge the Fund faces in forecasting future cash flows from its largest subsidiary, Pawnee Leasing Corporation (“Pawnee”), the Fund will declare monthly distribution levels for each upcoming quarter, based on its estimated actual cash flow from the immediately preceding quarter.

“This new policy allows us to set distribution amounts at levels that reflect the operating needs of the business and our actual cash flows.” said Barry Shafran, the Fund’s President and Chief Executive Officer. “The policy also allows Chesswood to continue to provide unitholders with distributable cash, while eliminating the need to try to determine future business performance at a time when forecasts are inherently difficult” added Shafran.

For the interim months of August and September, prior to this policy taking effect, the Fund will distribute $0.025 per month, per unit.

The Fund also announced that Pawnee recently renewed its credit facility with its lenders, for a term of three years.

About Chesswood Income Fund

Chesswood Income Fund is a financial services trust with operating businesses in both Canada and the U.S. Through its subsidiaries, Chesswood operates in the United States as a leading commercial micro and small-ticket equipment leasing company and in Canada as an automotive sales and leasing company.

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