Arriscraft International Income Fund Announces First Quarter 2007 Results

Consolidated sales for the three months ended March 31, 2007 were $16.2 million compared to $17.4 million in the comparable quarter last year. Both Canadian and U.S sales, expressed in U.S. dollars, declined approximately 7% compared to last year's first quarter. As weather conditions improved toward the end of the quarter, orders began to increase, and management believes the sales shortfall experienced in the current year's first quarter compared to last year's first quarter will be recovered through the balance of 2007.

As a result of the sales shortfall and lower gross profit margins, the Fund's consolidated gross profit for the quarter totaled $7.0 million compared to $8.3 million last year. The gross profit margin was impacted by a shift in product mix as well as a strategic decision to build inventories of traditionally high demand products during the normally slow first quarter in order to free up production capacity for other product lines through the balance of the year.

Adjusted earnings before interest, taxes, depreciation, amortization and unrealized foreign exchange gains and losses ("Adjusted EBITDA") were $1.2 million in the first quarter of 2007 compared to $1.8 million in the prior year. The decline was primarily due to lower sales, which drove lower gross profits, partially offset by a 6% reduction in selling, general and administrative ("SG&A") expenses compared to the first quarter of last year.

Primarily due to the reduced first quarter sales and gross profits, the Fund generated a consolidated net loss of $0.8 million, or $0.09 per unit, compared to a consolidated net loss of $0.9 million, or $0.11 per unit, in the comparable period last year. The lower net loss in the current year was due to a combination of reduced SG&A and amortization costs combined with the realization of foreign exchange gains compared to losses in the prior year.

The Fund generated distributable cash of $0.6 million or $0.065 per unit in the first quarter of 2007 compared to $1.1 million or $0.132 per unit in the same period last year. The Fund declared cash distributions of $0.7 million or $0.105 per unit for the three months ended March 31, 2007. No cash distributions were declared in last year's first quarter.

Unaudited, consolidated first quarter financial highlights are summarized below:

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Three months ended                                                        
($000 except per unit amounts - unaudited)  March 31, 2007  March 31, 2006
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Sales                                               16,172          17,376
Gross Profit                                         6,966           8,293
Gross Profit as % of Sales                            43.1%           47.7%
Net Income (Loss)                                     (755)           (928)
Adjusted EBITDA(a)                                   1,156           1,833
Distributable Cash per Unit(b)                      $0.065          $0.132
Cash Distributions Declared per Unit                $0.105               -
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(a) "Adjusted EBITDA" removes the following non-cash items from earnings before interest, taxes, depreciation and amortization: (i) the non-controlling interest in the Fund's income or loss for the period, and (ii) unrealized foreign exchange gains and losses.

(b) Per unit calculations assume the conversion of all restricted, subordinated Management Units into Units.

Dave Boles, President & CEO, commented: "While our business was impacted by weather conditions in both our Canadian and U.S. markets in the first quarter, we believe our operating results will recover through the balance of the year. Our customers on both sides of the border remain confident that business conditions will improve and that our unique products and leading customer service and support will translate into solid sales going forward."

Georgia Plant Expansion:

Capital expenditures during the quarter related to the expansion of the Fund's Georgia manufacturing facility, which was announced on November 7, 2006, totaled $1.1 million. Additional expenditures of approximately $3.4 million are expected to be made during the balance of 2007 with completion expected in the first half of 2008. As disclosed previously, it is anticipated that the project will be financed primarily from the Fund's internal cash flow after all working capital and current cash distribution needs have been met.

Mr. Boles commented: "Our Georgia facility is located in the heart of North America's strongest housing and masonry market, one in which demographic shifts favouring the construction of retirement residences in warmer climates are expected to continue to drive residential construction activity. Even a modest increase in our share of this market should result in a meaningful increase in our revenues in the years ahead."

Arriscraft International Income Fund

The Fund owns the Arriscraft International manufactured stone, brick and natural stone masonry products business conducted through Arriscraft International Limited Partnership, Arriscraft International LLC and certain affiliates in Canada and the United States. Arriscraft produces manufactured stone masonry products in Canada and the United States using its proprietary The Natural Edge(R) manufacturing process. Arriscraft also produces brick, cast stone and natural stone masonry products and distributes its masonry products across Canada and most of the United States.

The Fund's unaudited Consolidated Financial Statements for the three months ended March 31, 2007 and Management's Discussion and Analysis are available on the Fund's web site at www.arriscraft.com and on SEDAR at www.sedar.com.

This press release contains forward-looking statements. The statements that are not historical facts contained in this press release are forward-looking statements that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Fund to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Examples of such statements include: expectations with respect to increasing sales and performance through the remainder of the year, housing market and demographic trends in the U.S. that drive construction activity, and the Fund's ability to increase its market share in the U.S. residential construction market, as well as the effectiveness of production capacity and inventory planning. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the successful completion of the Georgia plant expansion on schedule and within budget; the ability of the Fund to implement its programs for growth and production enhancements; level of activity in the residential and commercial construction markets and the economy generally; consumer interest in the Fund's products; competition; foreign exchange rates; and anticipated and unanticipated costs. While the Fund anticipates that subsequent events and developments may cause the Fund's views to change, the Fund specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the Fund's views as of any date subsequent to the date of this press release. Although the Fund has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the Fund. Additional factors are noted in Management's Discussion and Analysis of the Fund for the quarter ended March 31, 2007 under "Risks and Uncertainties".

"Adjusted EBITDA" is determined by making adjustments to earnings before interest, taxes, depreciation and amortization ("EBITDA") for certain items that Management believes do not affect Arriscraft's cash flow, principally unrealized foreign exchange gains and losses and the non-controlling interest in the Fund's consolidated gains and losses. EBITDA and Adjusted EBITDA are not recognized measures under Canadian generally accepted accounting principles ("GAAP"); however, Management believes EBITDA and Adjusted EBITDA are useful supplemental measures to net earnings as they provide investors with an indication of cash available for distribution prior to debt service, capital expenditures and income taxes. "Distributable cash" is not a measure recognized under GAAP and does not have a standardized meaning prescribed by GAAP. Management believes distributable cash is a relevant measure of the ability of the Fund to earn and distribute cash returns to Unitholders. A reconciliation of cash provided by operating activities to distributable cash is set out in Management's Discussion and Analysis of the Fund for the quarter ended March 31, 2007.

Website: www.arriscraft.com