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Canadian Income Management Trust (TSX: CNM.UN) provides an update on redemptions and outlook for debentures
Toronto/Calgary: Canadian Income Management Ltd. (“CIM”), the administrator of Canadian Income Management Trust (the “Trust”), wishes to confirm the method for calculating the net asset value per unit (“NAVPU”) for the Trust’s upcoming quarterly redemption.Redemption NAVPU: As per Section 18.5 of the Trust’s Trust Indenture, the redemption net asset value of the Trust on the date of the redemption shall be equal to:• 99% of the aggregate value of the portfolio using a three day volume weighted average price ending on the valuation date, and all other assets of Canadian Income Management L.P. (the “Partnership”) on such date;

less all of the following:• 99% of the aggregate value of the Partnership’s liabilities on such date; • 100% of the amount which would be payable on the preferred units of the Partnership on such date if the Partnership was terminated and liquidated on such date; and • 100% of the aggregate value of the Trust’s liabilities on such date, expressed in Canadian dollars.

As at December 13, 2007, the redemption NAVPU calculated in accordance with the Trust Indenture was $0.00. If the redemption NAVPU remains at this level for the Trust’s upcoming December redemption, any units tendered will be cancelled and unitholders will not receive any proceeds for tendering their units.Correction to past quarterly redemptions: The Trust has been reporting its NAVPU weekly, according to Canadian Generally Accepted Accounting Principles (“Canadian GAAP”). Under Canadian GAAP the amount payable on the preferred units of the Partnership is valued at amortized cost which, over the term to maturity, will accrete to the amount payable to the issued debentures. As at December 13, 2007, the difference in the amount payable on the preferred units and the amount payable to the debenture holders was equal to $0.33 per Trust unit. The redemption NAVPU used for the June 30, 2007 and September 30, 2007 redemptions were erroneously calculated in accordance with Canadian GAAP instead of the method as described in the Trust Indenture. As a result, the Trust did not cancel a sufficient number of units for those two redemptions. This error has been corrected and the Trust has since been reimbursed by Sentry Select Capital Corp. for the dilution arising from this error. Consequently, unitholders have not been negatively affected.Debentures: The market volatility that has contributed to the decline in the Trust’s NAVPU has not compromised the manager’s outlook concerning the interest payments on the debentures. The manager continues to closely monitor all positions in the Partnership’s portfolio (the “Portfolio”) and is confident that the cash flow currently being generated from the Portfolio is sufficient to cover all debenture interest payments and expenses. Based on the current distribution amounts of the Portfolio the interest coverage on the debentures after operating expenses of the Partnership, Trust and Canadian Income Management Inc. is 1.22.Sentry Select Capital Corp.: Sentry Select is a Canadian wealth management company that manages approximately $8 billion in gross assets as of November 30, 2007. The company offers a diverse range of investment products including closed-end trusts, mutual funds, principal-protected notes and flow-through limited partnerships, covering a variety of domestic and global mandates. Sentry Select is the manager and/or advisor to 29 Toronto Stock Exchange-listed reporting issuers. In addition, Sentry Select manages and/or provides advisory services to four reporting issuers listed on the TSX Venture Exchange.More services: Investor Services (broker/investor inquiries) or Kinga Lam (media inquiries)Tel: 1-888-246-6656  Fax:  416 364-1197

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions ‘‘expect’’, ‘‘intend’’, “will” and similar expressions to the extent they relate to CIM. The forward-looking statements are not historical facts but reflect CIM’s current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although CIM believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. CIM undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Documents (including press releases) regarding the various investment funds that are managed or advised by Sentry are provided for information purposes only and cannot be relied on to be complete, exhaustive or error-free unless the complete set of documents for any given investment fund with respect to which information is being sought is reviewed and then only on SEDAR (