Specialty Foods Group Income Fund Announces Fourth Amendment to Revolving Credit and Term Loan Agreement

Specialty Foods Group Income Fund (the "Fund") (TSX: HAM.UN) announced today that the fourth amendment has been filed to the Revolving Credit and Term Loan Agreement, dated June 14, 2006.

The amendment will provide for a number of significant changes including:

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1. Reducing Aggregate Revolving Commitment Amount to $35,000,000 from

$45,000,000;

2. Adding a special $3,000,000 over-advance facility which matures on

March 26, 2007;

3. Containing general pricing increased as follows: 1% increase across

all levels for Revolving LIBOR and Base Rate Loans, and 1%

increase across all levels for Term LIBOR and Base Rate Loans;

4. Amending the maturity dates for all Loans from June 14, 2011 to

December 26, 2008;

5. Containing a modification of Fixed Charge Coverage Ratio to

commence testing at fiscal month end March 30, 2007; and

6. Containing an obligation to send a notice to holders of the

Company's outstanding Debentures that it is the Company's intent to

defer making payments in accordance with the terms of such

Debentures.

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Management believes that the changes to the revolving credit and term loan agreement will provide the Company with flexibility in meeting its debt covenants without inhibiting the operation of business. The full text of the amendment has been filed with the Canadian securities regulatory authorities and is available on the internet at the System for Electronic Document Analysis and Retrieval (SEDAR) website (www.sedar.com).

Specialty Foods Group Income Fund is an open-ended, limited purpose trust established under the laws of the Province of Ontario, which indirectly holds an interest in Specialty Foods Group, Inc. ("SFG"). SFG is a leading independent U.S. producer and marketer of premium branded and private-label processed meat products. SFG produces a wide variety of products such as franks, hams, bacon, luncheon meats, dry sausage and delicatessen meats. These products are sold to a diverse customer base in the retail (e.g., supermarkets) and foodservice (e.g., restaurants) sectors. SFG sells products under a number of leading national and regional brands, such as Nathan's, Swift Premium, Field, Fischer's, Mosey's, Liguria, Alpine Lace and Scott Petersen as well as on a private-label basis.

This news release contains forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors outside of management's control that could cause actual results to differ materially from those described in the forward-looking statements. The Fund does not assume responsibility for the accuracy and completeness of those forward-looking statements and does not undertake the obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

%SEDAR: 00018733E

For further information: William Durham, Director of Treasury and Investor Relations, Tel: (757) 952-1216, Email: investorrelations@sfgtrust.com, Website: www.sfgtrust.com

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