Attention Business/Financial Editors:

/NOT FOR RELEASE OVER US NEWSWIRE SERVICES/

TORONTO, Feb. 28 /CNW/ - Menu Foods Income Fund announced today that it has finalized the definitive agreements with its bank and the holders of its senior secured notes, which among other things, define the terms and conditions governing the Fund's US$30 million bank and US$85 million senior secured note facilities, going forward.

Under the terms of these amended credit facilities, the Fund will pay US$543,000 in fees to the lenders, plus all associated legal expenses. In addition, the Fund and the lenders have agreed to modify certain covenants and, beginning January 2006, to pay an increased rate of interest based upon a sliding scale that decreases as the Funds leverage ratio decreases. The interest rate increase is 200 basis points and 125 basis points higher with respect to the Notes and the Bank Facility respectively effective January 1, 2006. This rate of interest will decrease until the Fund's total debt to EBITDA ratio is reduced to 3 to 1 at which time the interest rates will return to levels under the prior agreements.

Furthermore, the amended agreements require that the Fund not pay distributions until it is in compliance with the covenants set out in its former credit facilities, including a total debt to EBITDA ratio of 3 to 1 or less. The Fund is required to use its excess cash to reduce its indebtedness until this level of leverage is achieved.

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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