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Press release from Marketwire

Altus Group Income Fund Announces Second Quarter Results

Tuesday, August 10, 2010

Altus Group Income Fund Announces Second Quarter Results11:52 EDT Tuesday, August 10, 2010TORONTO, ONTARIO--(Marketwire - Aug. 10, 2010) - Altus Group Income Fund ("Fund") (TSX:AIF.UN) today announced financial and operating results for the quarter ended June 30, 2010.Performance Highlights - Year-over-year revenue growth of 23% for the quarter, 22% for year-to- date - Year-over-year EBITDA growth of 18% for the quarter, 24% for year-to- date - Achieved an adjusted payout ratio of 73.4% for the quarter and 84.1% year-to-date compared to 77.1% and 95.1% in 2009, respectively Revenue for the second quarter of 2010 was $62.5 million, compared to $50.6 million for the comparable period in 2009, a 23% increase, of which approximately 18% is attributable to revenues from businesses acquired in the past 12 months. Revenue for the six months ended June 30, 2010 was $123.2 million, compared to $101.2 million in 2009, a 22% increase, of which approximately 17% is attributable to businesses acquired in the past 12 months.EBITDA for the second quarter 2010 was $10.5 million, compared to $9.0 million in the same period last year, an increase of 18%. EBITDA for the six months ended June 30, 2010 was $18.9 million, compared to $15.2 million in 2009, an increase of 24%."Altus continues to exhibit steady growth and solid performance in both domestic and international markets," said Gary Yeoman, Chief Executive Officer of Altus Group. "We continue to reinforce our competitiveness, revenues and reach by making key investments in technology, maximizing opportunities across our business lines to ensure we are well positioned going forward."Net earnings for the second quarter 2010 were $1.4 million, or $0.07 per unit, compared to $1.1 million, or $0.06 per unit for the second quarter of 2009. Net earnings per unit are basic and diluted.In the second quarter of 2010, the Fund generated adjusted distributable cash of $9.1 million, or $0.41 per unit, and achieved an adjusted payout ratio of 73.4%, compared to $8.2 million, or $0.39 per unit, and an adjusted payout ratio of 77.1% in the second quarter of 2009. For the quarter, distributions declared totaled $0.30 per unit. For the six months ended June 30, 2010, the Fund generated adjusted distributable cash of $15.8 million, or $0.71 per unit, and achieved an adjusted payout ratio of 84.1%, compared to $13.3 million, or $0.63 per unit, and an adjusted payout ratio of 95.1% in the first half of 2009. For the six months ended June 30, 2010, distributions declared totaled $0.60 per unit.Strategic Highlights -- Acquired certain business assets of US-based Brazos Tax Group and PricewaterhouseCoopers' Real Estate Appraisal Management Practice -- Increased investment in Solidifi Inc. from 19.5% to 23.6% -- Announced intention to convert to corporation by January 1, 2011 and maintain $1.20 annual payout to investors In the second quarter of 2010 and in July 2010, Altus invested an additional $3.0 million in Solidifi Inc., bringing the Fund's total equity interest to 23.6%. Solidifi Inc. is a leading provider of collateral valuation, risk management and data analytic services to the North American mortgage industry.On June 1, 2010, the Fund indirectly acquired certain business assets of Brazos Tax Group LLP, a US-based property tax company that provided services such as business and personal property tax compliance and appeals, real estate valuation appeals and property tax payment administration and due diligence. Subsequent to quarter end, on July 30, 2010, as part of a targeted expansion into the US, the Fund indirectly acquired certain business assets of PricewaterhouseCoopers' US-based Real Estate Appraisal Management Practice ("PwC Appraisal Management Practice"). The PwC Appraisal Management Practice provided a comprehensive national valuation consulting and analytic services to a roster of global clients from offices in Jersey City, Houston, Irvine and Atlanta. This acquisition will enhance Altus' ability to operate worldwide while broadening its local insight, providing clients with a comprehensive suite of value-added services.Subsequent to quarter end, on July 2, 2010, the Fund indirectly acquired certain business assets of Peters Surveys Ltd., a professional land surveying and planning firm that provided a broad range of geomatic services within the province of Saskatchewan, Canada."As we continue a targeted acquisition strategy, Altus is carefully selecting firms that further bolster our unique suite of service offerings and leverage our expanding platform of proprietary data," said Yeoman. "This means that clients can rely on independent, comprehensive advice, offered by experienced leading industry professionals and thereby better manage risk and maximize value for their business."Analyst Call DetailsAltus Group Income Fund will hold an analyst conference call at 9:00 a.m. Eastern Daylight Time on Wednesday, August 11, 2010 to discuss these financial results and current industry conditions. Please dial 1-866-226-1792 (toll free) or 416-340-2216 (GTA) to access the call. You will be required to identify yourself and your organization. A recording of this call will be made available beginning at 11:30 p.m. EDT. To access the recording, please call 1-800-408-3053 or 416-695-5800 (passcode: 4787323). The recording will also be available at altusgroupincomefund.com.About Altus Group Income FundAltus Group is the leading multidisciplinary provider of independent real estate consulting and professional advisory services worldwide. With a staff of over 1,600, Altus Group has a network of over 60 offices in 11 countries worldwide, including Canada, UK, Australia, Asia and the United States. We operate four interrelated Business Units, bringing years of expertise together into one comprehensive platform: Research, Valuation and Advisory; Cost Consulting and Project Management; Realty Tax Consulting and Geomatics services. Altus' clients include banks, financial institutions, governments, pension funds, asset and fund managers, developers and landlords and companies engaged in the oil and gas industry.Forward Looking StatementsCertain statements in this press release may constitute "forward-looking" statements, which involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Fund and its subsidiary entities, to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this press release, such statements use words such as "may", "will", "expect", "believe", "plan", "would", "could" and other similar terminology. These statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those described in the Fund's publicly filed documents, including the Annual Information Form, dated March 24, 2010 (which are available on SEDAR at www.sedar.com). Those risks and uncertainties include: general state of the economy; dependence on oil and gas sector; competition in the industry; ability to attract and retain professionals; interest rate risk; currency risk; credit risk; ability to maintain profitability and manage growth; revenue and cash flow volatility; dependence on Canadian multi-residential market; integration of acquisitions; protection of intellectual property; weather; fixed-price and contingency engagements; performance of obligations / maintenance of client satisfaction; appraisal mandates; customer concentration; restrictions on potential growth; operating risks; risk of future legal proceedings; legislative and regulatory changes and insurance limits. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, the Fund cannot assure investors that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release and, except in accordance with applicable law, the Fund assumes no obligations to update or revise them to reflect new events or circumstances. Additionally, the Fund undertakes no obligation to comment on analyses, expectations or statements made by third parties in respect of the Fund, its financial or operating results, or its securities.FOR FURTHER INFORMATION PLEASE CONTACT: Altus Group Income Fund Sayla Nordin VP, Communications and Investor Relations (416) 557-0939 altusgroupincomefund.com