Tax information is provided only for the general use of Unitholders. For tax planning or professional advice, please consult a qualified professional.

	2007 2006 2005 TOTAL DISTRIBUTION CDN / UNIT $ 1.76 $ 1.68 $ 1.50 Return of Capital $ 0.0962 $ 0.1814 $ 0.0705 Other Taxable Income $ 1.6638 $ 1.4986 $ 1.4295 Of the distributions declared in 2007, 5.5% is a return of capital and the remaining 94.5% is subject to income tax in the hands of the Unitholders.

In general, the Fund is treated as a mutual fund trust and as such is taxable on its income determined under the Income Tax Act (Canada) from sources inside or outside Canada. The Fund may deduct in computing income for a taxation year amounts paid or payable or deemed to be paid or payable in such year to the Unitholders, including income paid in the form of additional units.

Under the Declaration of Trust, the Fund at a minimum will pay by way of distributions an amount not less than the taxable income of the Fund for the calendar year. Consequently, to the extent that the taxable income is not fully distributed by virtue of the regular monthly distributions, the Fund must pay a special distribution of undistributed taxable income to ensure that it does not pay any income tax.

Regarding the October 31, 2006 announcement by the Department of Finance regarding the proposed tax changes for income trusts, we do not expect these changes to significantly impact our ability to execute our growth strategy. As a member of the Canadian Association of Income Funds, we will continue to work with them to ensure that the views of our Unitholders are made clear to the federal government. If the legislation is finalized, we envision that Armtec’s current tax treatment will continue through the next four years. Regardless of our corporate structure, our strong fundamentals and proven track record make us confident that we can deliver on our number one priority: the enhancement and maximization of long-term Unitholder value.