TORONTO, ONTARIO -- (MARKET WIRE) -- 08/14/07 -- Drive Products Income Fund (TSX: DPI.UN) today released second quarter financial results and announced the August 2007 cash distributions to untiholders. The Fund commenced operations on August 25, 2006 when it completed its initial public offering ("IPO"). As such, references to comparable 2006 periods are based on the unaudited financial statements of Drive Products, the operating entity.

The Canadian markets in which the Fund's customers operate have continued to show softness in the West but remain positive in the East. Defence related sales have increased 27.2% year over year. In the East, non-defence related sales, are up 4.4% year over year. "In the West, sales continue to be negatively impacted by the reduced drilling activity in Alberta, said Greg Edmonds, Chief Executive Officer. Canadian oilwell drilling contractors have forecasted overall drilling activity, including natural gas, to be down between 25% to 30% in 2007 compared to 2006. The reduction stems primarily from lower natural gas drilling. The continued strength of the Canadian dollar has had a favourable impact on our purchasing costs, but these impacts have been largely offset by vendor price increases and downward pressure on our sale prices".

In June 2007, the House of Commons passed legislation to tax publicly traded income trusts in Canada, commencing in 2011. As a result of this new legislation, Canadian accounting guidance requires that the Fund record a future tax liability and a corresponding initial non-cash charge to net income of $3.8 million in the second quarter. This represents substantially all of the liability related to this legislative change in the taxation of trusts.

Sales decreased 12.8% to $21.7 million in the second quarter of 2007 compared to $24.9 million in the second quarter of 2006. June 2007 year to date sales were down 2.6% to $46.6 million compared to $47.8 million in 2006. In 2007, sales were augmented by the contributions of DSI, PDS, 4WD and Dynamic. Collectively, these companies contributed approximately $2.3 million in the second quarter of 2007 and $4.2 million for the six month period ended June 30, 2007. Each company had a positive impact on net income. Defence industry sales increased 10.1% to $3.2 million in the second quarter of 2007 compared to $2.9 million in the second quarter of 2006 and 27.2% to $6.3 million for the six month period ended June 30, 2007 compared to $5.0 in 2006.

Net loss for the three and six month periods ended June 30, 2007 was $4.4 million and $4.9 million respectively, compared to net income of $5.8 million and $8.9 million for the 2006 comparable periods. The 2006 periods are not comparable as amortization of intangible assets recorded in connection with the IPO amounted to $3.5 million in the second quarter of 2007 and $7.0 million year to date. Also in the quarter, due to the enactment of Bill C-52, the Fund, as required under GAAP, has recorded a future income tax non-cash provision of $3.8 million to earnings in respect of temporary differences between the financial reporting and tax basis of assets and liabilities that are expected to reverse after 2010. The provision will have no impact on the Fund's cash flows or distributions to unitholders.

EBITDA for the three month and six month periods ended June 30, 2007 was $3.3 and $6.7 million respectively, compared to $6.1 million and $9.7 million for the 2006 comparable periods. The reduction in EBITDA is partially attributed to increased general and administrative expenses incurred for public company costs and increased rent expense which was not at market rates in 2006. However, the majority of the reduction resulted from the downturn in our Alberta branches. EBITDA in our Western branches was down $2.3 million in the current quarter and $2.7 million year to date.

The Fund also announces that its Board of Trustees has approved a cash distribution of $0.0642 per unit for the month of August 2007 (equivalent to $0.77 per unit on an annualized basis). The distribution is payable to each unitholder of the Fund and to each unitholder of the Class B limited partnership units of Drive Products Limited Partnership of record on August 31, 2007 and will be paid on September 14, 2007.

"We are moving forward with our plans to create a new Toronto East branch", said Greg Edmonds. In the second quarter, we acquired the assets of two companies in the East and are in the process of having a new building completed by the first quarter of 2008. In doing so, we will be able to broaden our sales base with fleets, retail accounts and government agencies in the East.

Summary of results:

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($ thousands
 except per                For the three months         For the six months
 unit figures)                    ended June 30              ended June 30
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                                        2007 vs                    2007 vs
                       2007    2006 (1)    2006    2007    2006 (1)   2006
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                       (un-       (un-             (un-       (un-
                    audited)   audited)         audited)   audited)
                          $          $                $          $

Sales                21,745     24,943   (12.8%) 46,556     47,812   (2.6%)

Cost of Sales
 and General
 and Administrative  18,452     18,822    (2.0%) 39,833     38,067    4.6%
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EBITDA (2)            3,293      6,121   (46.2%)  6,723      9,745  (31.0%)
Amortization          3,860        259            7,692        474
Interest expense         55        110               95        369
Future income
 tax provision        3,821          -            3,821          -
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Net earnings (loss)
 (3)                 (4,443)     5,752           (4,885)     8,902
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Average number of
 units
 outstanding (4)     13,982          -           13,982          -

Basic and diluted
 earnings
 (loss) per unit      (0.32)         -            (0.35)         -

Total assets        134,565     38,003          134,565     38,003

Long term
 liabilities          4,277        556            4,277        556
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(1)  Results for the three and six month periods ended June 30, 2006 are
     basedon internally prepared financial statements and are not
     comparable to 2007. In 2006, rent expense was not at market rates,
     nor were there any public company costs or amortization of intangible
     assets.

(2) EBITDA is a non-GAAP measure. See "Non-GAAP Measures" below for a
    definition of EBITDA.

(3) The Fund's taxable earnings are allocated to its unitholders and taxed
    in their hands.

(4) For purposes of calculating the average number of units outstanding,
    Fund units and Class B units exchangeable for Fund units have been
    included.

Second Quarter Interim Report

The Fund's second quarter interim report is available on the Fund's website at www.driveproducts.com and at www.sedar.com.

Drive Products will hold a conference call to discuss these financial results on August 15, 2007 at 9:00 am (Eastern).

Available on the call to answer questions will be Greg Edmonds, Chief Executive Officer and Chris Boudreau, Chief Financial Officer.

To participate in the conference call, please dial 416-640-3405 or 1-866-322-2356.

An archived recording of the call will be available at 416-915-1028 or 1-866-244-4494 (Passcode ID 84187) from two hours after the completion of the call to midnight September 4, 2007.

EBITDA and distributable cash are not earnings measures recognized by GAAP and do not have standardized meanings prescribed by GAAP. Therefore, EBITDA and distributable cash may not be comparable to similarly titled measures presented by other issuers. Investors are cautioned that EBITDA and distributable cash should not be construed as an alternative to net income or loss determined in accordance with GAAP as indicators of the Fund's performance or to cash flows from operating, investing and financing activities as measures of liquidity and cash flows. EBITDA means net earnings adjusted to exclude income taxes, gains or losses on disposal of capital assets, amortization of capital assets and intangible assets, and interest expense. Distributable cash means EBITDA, adjusted for maintenance capital expenditures and other adjustments listed in the reconciliation provided in management's discussion and analysis of financial condition and results of operations for the first quarter available at www.sedar.com.

About Drive Products Income Fund

Drive Products Income Fund holds a 54.5% indirect interest in Drive Products. Founded in 1983, Drive Products is a Canadian leader in the design and installation of systems solutions that transform a conventional new truck chassis into a specialized vehicle that meets a customer's technical and performance requirements. To achieve this, Drive Products offers a wide variety of products such as power take-offs, hydraulic pumps, motors and coolers, winches, cables and controls, drivelines, blowers and compressors, hoses and fittings, custom consoles, snowplows, spreaders and electronic spreader controls, from leading international manufacturers, in many instances as the sole distributor in Canada.

Forward-Looking Statements

This press release contains forward-looking statements relating to expected future events and financial and operating results of the Fund. These statements involve known and unknown risks and uncertainties. Actual results may differ materially from those anticipated by such forward-looking statements for a variety of reasons, including without limitation, market and general economic conditions and the risks and uncertainties detailed from time to time in the Fund's continuous disclosure documents filed with the Canadian securities regulatory authorities. The Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

Contacts:
Drive Products Income Fund
Greg Edmonds
Chief Executive Officer
(905) 795-3925
Email: greg.edmonds@driveproducts.com

Drive Products Income Fund
Chris Boudreau
Chief Financial Officer
(905) 795-3929
Email: chris.boudreau@driveproducts.com
Website: www.driveproducts.com