TSX Symbol: SQP.UN                                   For Immediate Release

Strongco Reports Third Quarter Profits of $0.52 per Unit and Announces Distributions for November and December 2005; January and February 2006 and a Special Distribution for November 2005

Mississauga , Ontario – October 27 th, 2005: Strongco Income Fund today released its results for the third quarter of 2005.

For the three months ended September 30th, 2005 , Strongco Income Fund (“Strongco”) generated net income after tax of $5.2 million, ($0.52 per unit) on revenues of $102.1 million, versus $2.3 million, (0.25 per unit) on revenues of $88.4 million for the comparable quarter 2004. On a diluted basis the net income per unit was $0.52 versus $0.24 last year. The increase in revenues was led by equipment sales especially Volvo, Tigercat and our National and Grove crane lines.

For the nine months ended September 30th, 2005, Strongco Income Fund generated net income after tax of $11.8 million, ($1.20 per unit) on revenues of $307.4 million versus $5.5 million, ($0.59 per unit), on revenues of $248.5 million for the comparable period in 2004. On a diluted basis, the net income per unit was $1.20 versus $0.57 last year. During the first quarter of 2005, Strongco expensed $1.1 million ($0.08 per unit) of costs related to the ‘Plan of Arrangement’ with respect to Strongco’s conversion to an Income Trust.

Mr. Robin MacLean, President commented, “We are pleased with the results, which were in line with our expectations and expect this to continue for the balance of the year. Our third quarter revenues were up 16% and our pretax income was up 75% on a year over year basis. For the nine months, revenues were up 24% and pretax income was up 107%.”

Strongco Income Fund also announced today the following cash distributions: $0.15 per unit for November 2005 will be payable on December 20, 2005 to Unitholders of record at the close of business on November 30, 2005; $0.15 per unit for December 2005 will be due and payable to Unitholders of record on December 31, 2005 and shall be distributed by January 20, 2006; $0.15 per unit for January 2006 will be payable on February 20, 2006 to Unitholders of record at the close of business on January 31, 2006; $0.15 per unit for February 2006 will be payable on March 20, 2006 to Unitholders of record at the close of business on February 28, 2006.

Strongco Income fund is pleased to announce a special cash distribution of $0.05 per unit for November 2005 will be payable on December 20, 2005 to Unitholders of record at the close of business on November 30, 2005.

Mr. Charles M. Phillips, President & CEO of Armtec Infrastructure Income Fund was appointed to the Board of Trustees.

Strongco will host a conference call at 9:30 a.m. on Friday, October 28 th, 2005 , to further discuss its second quarter. To participate in the conference call, dial 416-641-6707 or 1-888-793-1728, reservation number is 21265948 a few minutes prior to 9:30 a.m. on the 28th. A taped version of the call will be available until November 11 th, 2005 . Dial 416-626-4100 or 1-800-558-5253 and enter the reservation number 21265948.

Strongco Income Fund is a trust established to hold the securities of Strongco Inc., a full-line equipment sales and service company. Its units are listed on the Toronto Stock Exchange and its website can be accessed at www.strongco.com.

For further information contact:

Len Phillips,
Vice President Administration
& Corporate Secretary

Telephone No.: 905-565-3840

Email: lphillips@strongco.com

Report to Unitholders

For the three months ended September 30th, 2005, Strongco Income Fund (the “Fund” or “Strongco”) generated earnings of $0.52 per unit ($0.52 per unit on a diluted basis) versus earnings of $0.25 per unit ($0.24 per unit on a diluted basis) in the comparable quarter last year. Revenues for the third quarter of 2005 were $102.1 million versus $88.4 million for the comparable quarter in 2004.

For the nine months ended September 30th, 2005, Strongco generated earnings of $1.20 per unit ($1.20 per unit on a diluted basis) versus earnings of $0.59 per unit ($0.57 per unit on a diluted basis) in the comparable period last year. Revenues for the nine months ended September 30th of 2005 were $307.4 million versus $248.5 million for the comparable period in 2004. The increased revenues were mainly a result of increased equipment sales led by the Volvo, Tigercat and Grove lines. During the first quarter of 2005, the Company expensed $1.1 million ($0.08 per unit) of costs related to the ‘Plan of Arrangement’ with respect to the Company’s conversion to an Income Trust.

In addition to our regular monthly distribution of $0.15 per unit, a special distribution of $0.05 per unit will be paid on December 20, 2005 to unitholder’s of record at the close of business on November 30, 2005.

Charles M. Phillips has been appointed as a trustee of the Fund effective October 27, 2005. Charles is the President and CEO of Armtec Infrastructure Income Fund.

Management’s Discussion and Analysis

The following management discussion and analysis (“MD&A”) provides a review of the consolidated financial condition and results of operations of Strongco Income Fund (the “Fund” or “Strongco”) and Strongco Inc. (the “Company”), for the three and nine months ended September 30, 2005. This discussion and analysis should be read in conjunction with the accompanying unaudited consolidated financial statements and with the audited consolidated financial statements related to the Company and management’s discussion and analysis contained in the Company’s annual report. For additional information and details, readers are referred to the Company’s quarterly financial statements and quarterly MD&A for fiscal 2004 and 2005, as well as the Company’s Annual Information Form (“AIF”) and the Management Information Circular (“MIC”) dated March 24, 2005, all of which are published separately and are available on SEDAR at www.sedar.com.

Unless otherwise indicated, all financial information within this discussion and analysis is in Canadian dollars millions except per unit amounts.

Strongco Income Fund

Strongco Income Fund is an unincorporated open-ended limited purpose trust established under the laws of the Province of Ontario pursuant to the declaration of Trust dated March 21, 2005.

On February 24, 2005, the Company announced that it had engaged BMO Nesbitt Burns Inc. as its financial advisor in connection with the review of a proposal to transform the Company into a new publicly traded income fund that will carry on the existing Strongco business. The Board of Directors approved a Plan of Arrangement (the “Plan”) to proceed with such transformation and an announcement to that effect was made by the Company on March 16, 2005. At the Annual and Special Meeting of shareholders held April 28, 2005, the Plan was approved.

Pursuant to the Plan which became effective on May 6, 2005, the Fund acquired all of the issued and outstanding shares of Strongco Inc. in exchange for units of the Fund on a one for one basis. As a result of which, Strongco Inc. continues to carry on business as a wholly owned subsidiary of Strongco Income Fund.

Distributions

The Fund’s policy is to make distributions of its available cash to the maximum extent possible to unitholders. The Fund makes monthly distributions to unitholders of record on the last business day of each month payable on or about the 20 th of the following month.

Financial Results – Three Months Ended September 30, 2005

Consolidated revenues for the three months ended September 30, 2005 increased by $13.7 million (15.5%) to $102.1 million from $88.4 million for the three months ended September 30, 2004. As indicated in the chart below, Equipment Distribution revenues increased 18.3% representing a $14.5 million improvement over the third quarter of 2004 which included $2.9 million of revenues from operations in Manitoba which were disposed of in the fourth quarter of 2004. Revenues in the Engineered Systems segment increased by $0.6 million (8.8%) on a comparative quarter basis due to generally stronger capital equipment markets. Revenues in the Equipment Rentals segment declined by $1.4 million from $2.4 million for the third quarter of 2004 to $1.0 million for the third quarter of 2005. Rental revenues in the third quarter of 2004 included $1.3 million of revenues from operations in Saskatchewan which were disposed of in the fourth quarter of 2004.

Within the Equipment Distribution segment, the increase in revenues was primarily the result of higher equipment sales in Alberta.

Gross Margin

Strongco’s gross margin for the three months ended September 30, 2005 increased by $2.1 million (12.8%) to $18.5 million from $16.4 million for the three months ended September 30, 2004 due to the higher revenue base.

Within the Equipment Distribution segment, business activities include the sale of machinery, customer support (parts and service) and equipment rentals. Equipment sales generate a significantly lower margin than customer support activities, accounting for 72.9 % of segment revenues and 37.1% of gross margin for this segment in the third quarter of 2005 (69.6% of segment revenues and 31.1% of segment gross margin in the third quarter of 2004). In the third quarter of 2005, gross margin (%) improved over the third quarter of 2004 in both equipment sales and customer support activities, however, overall gross margins (%) declined slightly due to the relative volume of equipment sales.

Within the Equipment Rental segment, gross margins (%) continued to improve despite the lower revenue base as a result of the continuing disposition of the company’s underutilized rental fleet.

Gross margins for the Fund’s Engineered Systems segment improved by $0.3 million from $1.4 million in the third quarter of 2004 to $1.7 million in the third quarter of 2005 through a combination of higher revenues and a slight improvement in gross margin (%).

Administrative, Distribution and Selling Expense

Administrative, distribution and selling expenses were flat at $13.2 million for the three months ended September 30, 2005 and the three months ended September 30, 2004 as increases in expenses of $1.0 million were offset by the elimination of $1.0 million of expenses associated with the equipment operations in Manitoba and the rental operations in Saskatchewan which were disposed of in the fourth quarter of 2004.

Interest Expense

Strongco’s interest expense for the three months ended September 30, 2005 declined to $0.4 million from $0.6 million for the three months ended September 30, 2004. This was primarily a result of the reduction in the Fund’s level of interest bearing debt offset by higher interest rates in the third quarter of 2005 versus the third quarter of 2004.

Net Income (loss)

The following summarizes Strongco’s pre-tax income (loss) by segment:

On an after tax basis, Strongco earned $5.2 million ($0.52 per unit basic and diluted) for the three months ended September 30, 2005 compared to net income of $2.3 million ($0.25 per unit basic and $0.24 per unit diluted) during the third quarter of 2004.

A discussion of the Company’s previous quarterly results can be found in the Company’s quarterly Management’s Discussion and Analysis reports available on SEDAR at www.sedar.com.

Financial Condition and Liquidity

Cash generated from operating activities was $7.7 million in the third quarter of 2005 compared to cash generated from operating activities of $4.0 million in the third quarter of 2004. This was primarily due to the significantly higher earnings base as well as a decrease in working capital requirements of $1.9 million during the quarter compared to a decrease of $0.6 million during the third quarter of 2004.

Significant components of the change in working capital requirements are as follows:

Financial Results – Nine Months Ended September 30, 2005

Consolidated revenues for the nine months ended September 30, 2005 increased by $58.9 million (23.7%) to $307.4 million from $248.5 million for the nine months ended September 30, 2004. As indicated in the chart below, Equipment Distribution revenues increased 24.2% representing a $54.3 million improvement over the nine months ended September 30, 2004 which included $11.3 million of revenues from operations in Manitoba which were disposed of in the fourth quarter of 2004. Revenues in the Engineered Systems segment increased by $8.5 million (49.4%) on a comparative basis due to continued strength in project work in agricultural and mining applications.Revenues in the Equipment Rentals segment declined by $3.9 million from $6.5 million for the nine months ended September 30, 2004 to $2.6 million for the nine months ended September 30, 2005. Rental revenues in the nine months ended September 30, 2004 included $3.7 million of revenues from operations in Saskatchewan which were disposed of in the fourth quarter of 2004.

Within the Equipment Distribution segment, the increase in revenues was primarily the result of significantly higher equipment sales.

Within the Engineered Systems segment booking levels remain strong with the return to more normal capital spending levels across the country.

Gross Margin

Strongco’s gross margin for the nine months ended September 30, 2005 increased by $6.7 million (14.1%) to $54.1 million from $47.4 million for the nine months ended September 30, 2004 as a result of the higher revenue base.

The Fund’s gross margin percentage declined by 1.5% from 19.1% in the nine months ended September 30, 2004 to 17.6% in the nine months ended September 30, 2005. This was mainly due to a significantly higher mix of lower margin equipment sales in the first nine months of 2005 (74.5% of equipment distribution segment revenue) versus the first nine months of 2004 (67.8% of equipment distribution segment revenue).

Administrative, Distribution and Selling Expense

Administrative, distribution and selling expenses decreased slightly from $39.5 million for the nine months ended September 30, 2004 to $39.1 million for the nine months ended September 30, 2005 as increases in expenses of $2.6 million relating to higher selling expenses corresponding to the higher equipment sales volume, were offset by the elimination of $3.0 million of expenses associated with the Equipment operations in Manitoba and the Rental operations in Saskatchewan which were disposed of in the fourth quarter of 2004.

During the first quarter of 2005, the Company expensed $1.1 million comprised of advisory fees, legal and audit costs related to the ‘Plan of Arrangement’ with respect to the Company’s conversion to an Income Trust.

Interest Expense

Strongco’s interest expense for the nine months ended September 30, 2005 declined to $1.2 million in 2005 from $2.2 million in 2004. This was primarily a result of the reduction in the Fund’s level of interest bearing debt offset by higher interest rates in the first nine months of 2005 versus the first nine months of 2004.

Net Income

The following summarizes Strongco’s pre-tax income by segment:

On an after tax basis, Strongco earned $11.8 million ($1.20 per unit basic and diluted) for the nine months ended September 30, 2005 compared to income of $5.5 million ($0.59 per unit basic and $0.57 per unit diluted) during the first nine months of 2004. This improvement was through a combination of higher margins and lower interest expense.

Financial Condition and Liquidity

Despite the significantly higher earnings base, cash generated from operating activities was $3.2 million in the first nine months of 2005 compared to cash generated from operating activities of $8.3 million in the first nine months of 2004. This was primarily due to an increase in working capital requirements of $9.9 million during the nine months ended September 30, 2005 compared to an increase in working capital requirements of $1.3 million in the nine months ended September 30, 2004.

Significant components of the change in working capital requirements are as follows:

The increase in working capital requirements in the first nine months of 2005 were primarily comprised of a higher level of receivables and higher inventory levels, partially offset by related equipment financing.

Distributable Cash

Distributable Cash is presented as a measure of the extent to which the Fund is able to generate cash sufficient to fund unitholder distributions. Distributable Cash is a non-GAAP measure, and therefore has no standardized meaning prescribed by GAAP and may not be comparable to similar terms and measures presented by other similar issuers. Distributable Cash is intended to provide additional information on the Fund’s performance and should not be considered in isolation, seen as a measure of liquidity or as a substitute for measures of performance prepared in accordance with GAAP.

Contractual Obligations

The Fund has contractual obligations for operating lease commitments, long term debt and contingent contractual obligations where the Fund has agreed to buy back equipment from customers at the option of the customer for a specified price at future dates [‘buy back contracts’] which are more fully explained in the Company’s Management’s Discussion and Analysis included with its Annual Report which is available on SEDAR at www.sedar.com.

There have been no material changes to operating lease and long term debt obligations during the nine months ended September 30, 2005.

Contingent contractual obligations at September 30, 2005 are as follows:

Outstanding Units

The Fund is authorized to issue an unlimited number of Units pursuant to the Declaration of Trust. Each unit will be transferable and will represent an equal beneficial interest in any distributions from the Fund and in the net assets of the Fund. All units are of the same class with equal rights and privileges.

Risk and Uncertainties

A statement of claim has been filed naming a division of the Company as one of several defendants in proceedings under the Superior Court of Quebec. The action claims errors and omissions in the contractual execution of work entrusted to the defendants and names the Company as jointly and severally liable for damages of approximately $5.9 million. Although we cannot predict the outcome at this time, based on the opinion of external legal counsel, the Company believes that they have a strong defence against the claim and that it is without merit.

The Fund’s financial performance is subject to certain risk factors which may affect any or all of its business sectors. These are more fully detailed in Management’s Discussion and Analysis for the year ended December 31, 2004 included in the Company’s 2004 Annual Report.

Outlook

Strongco’s financial performance in the nine months ended September 30, 2005 met our expectations and we are optimistic for the balance of 2005.

Forward-Looking Statements

This Management’s Discussion and Analysis contains forward-looking statements that involve assumptions and estimates that may not be realized and other risks and uncertainties. The inclusion of this information should not be regarded as a representation of the Fund or any other person that the anticipated results will be achieved and investors are cautioned not to place undue reliance on such information. Such statements reflect management’s current beliefs and are based on information available to them. Management is under no obligation (and expressly disclaims any such obligation) to update or revise the forward looking information, whether as a result of new information, future events or otherwise. 

Robin MacLean

President & Chief Executive Officer