(Source: Canada Newswire)TORONTO, Nov. 6 /CNW/ - The General Donlee Income Fund (the "Fund" or "General Donlee") (TSX: GDI.UN) today announced its results for the third quarter, ended September 30, 2009. Reflecting an ongoing trend in its industry driven by wide-reaching economic pressures, the Fund's sales and earnings for the quarter fell short of those in the same period in 2008, though the ongoing strategic efforts of General Donlee Limited's (the "Company") management were able to limit the decrease somewhat by adjusting its operations to suit market conditions. General Donlee's third quarter 2009 results included:

- Sales of $8.6 million, down 36% from the Q3 2008 sales level of $13.4

million

- Net Income at $0.2 million, down from the $1.4 million earned in Q3

2008

- Distributable cash(1) of $(0.6) million or $(0.120) per Unit, as

compared to $2.3 million or $0.392 per Unit in the same period last

year

- $0.270 in distributions paid to Unitholders for the quarter

While the reduction in production levels and sales flowing from an industry slowdown led to the Fund's net income being reduced to $0.2 million in the third quarter of 2009, down from the $1.4 million it earned in the same period in 2008, the gain on the valuation of foreign exchange forward contracts helped mitigate some of the negative impact on earnings. Cash flow from operating activities of $3.6 million for the third quarter consisted of cash from operating activities of $(0.1) million and a net change in non- cash working capital items of $3.7 million.

While Management understands the relationship between the general economic downturn, its customers' reduced production levels, and General Donlee's own sales results, it also recognizes that the best way to see the Company through current market challenges is to be flexible, making changes to its own operations to reflect the times. Accordingly, General Donlee has made productivity enhancements in recent quarters including a reduction in the number of labour hours scheduled to better-reflect production demands, which, together with the continuing sales order backlog, did help mitigate the impact of the economic slowdown on General Donlee's overall health.

The Fund continued to pay regular monthly distributions to Unitholders at the rate of $0.090 per Unit in the third quarter of 2009, despite the pressure on sales. The ongoing effect on sales from the continued economic conditions in the industry has impacted negatively on General Donlee's financial results; one of the attendant outcomes of this is that the Fund's payout ratio in the last two quarters has been significantly higher than target. The Fund has historically had - and continues today to have - a strong commitment to long-term Unitholder value, which has been consistently illustrated in Management and the Trustees' decisions to historically maintain a conservative payout ratio. Given the Fund's conservative payout ratio in the past, Management and the Trustees had decided to maintain the current distribution level, but will continually monitor the Fund's results and their potential impact on future distributions to Unitholders.

Together with its third quarter results, the Fund announced the resignation of Melinda Lee from its Board of Trustees, and her replacement by David Wood, Vice President of Finance, Municipal Enterprises Limited, effective immediately. The Board of Trustees would like to thank Melinda Lee for all her hard work over the past few years.

Financial Highlights for the Three and Nine Months Ended September 30,

2009

The following summary of financial data presents the consolidated results of operations of the Fund for the three-month and nine- month periods ended September 30, 2009, including comparative results for the same periods in 2008.

Three Months Ended Nine Months Ended

($ millions, except Unit and ------------------ ----------- ------

per Unit amounts, unaudited) Sept 30/09 Sept 30/08 Sept 30/09 Sept 30/08

---------- ---------- ---------- ----------

Operations

----------

Sales 8.6 13.4 32.9 39.1

Gross profit 1.0 3.7 8.2 10.9

Net income 0.2 1.4 5.0 5.1

Basic income per Unit $0.040(a) $0.237(b) $0.930(c) $0.744(d)

Distributions

-------------

Distributable cash(1) (0.6) 2.3 2.8 6.7

Distributable cash per

Unit(1) $(0.120)(a) $0.392(b) $0.514(c) $0.983(d)

Distributions paid 1.4 1.5 4.4 5.4

Distributions paid per Unit $0.270 $0.270 $0.810 $0.810

(1) Distributable cash is not a defined term under Canadian generally

accepted accounting principles ("GAAP"), but is determined by the

Fund as cash flow provided by operating activities (adjusted to

remove changes in non-cash working capital items), less repayment of

long-term bank debt and less the pro-rated reserve for maintenance

capital expenditures, for which Management estimates $1.25 million

for 2009.