Attention Business/Financial Editors:

/NOT FOR RELEASE OVER US NEWSWIRE SERVICES/

TORONTO, Dec. 23 /CNW/ - Menu Foods Income Fund (the "Fund") announced today that its bankers have conditionally waived breaches of certain covenants in its credit agreement until February 28, 2006. In addition, the Fund has received an extension to the forbearance from each of the holders of its senior secured notes. The forbearance, which had provided that the noteholders would disregard the existing default under the terms of the senior secured notes until December 31, 2005, has now been conditionally extended until February 28, 2006.

During the period between now and February 28, the Fund will continue to work with its lenders to structure a long-term solution. The Fund believes that the discussions are continuing constructively, as evidenced by the extensions referred to above. However, there can be no assurance that these discussions will be successfully completed or that they will be completed on terms favourable to the Fund.

Menu is the leading North American private-label/contract manufacturer of wet pet food products sold by supermarket retailers, mass merchandisers, pet specialty retailers and other retail and wholesale outlets. Menu currently produces more than one billion containers per year.

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