August 10, 2006

Boyd Group Income Fund Reports 2006 Second Quarter Results

Winnipeg, Manitoba - August 10, 2006 - Boyd Group Income Fund (TSX: BYD.UN) (“the Fund”) today reported its financial results for the three and six-month periods ended June 30, 2006.

For the second quarter ended June 30, 2006, revenue declined to $45.0 million compared to revenue of $45.7 million in the second quarter of 2005, after adjusting for discontinued operations. The decline in sales resulted from the impact of foreign currency translation of sales generated from U.S. operations, offset by strong same store sales growth in Canada and new revenue generated from start-up locations in the U.S.

Sales in Canada in the second quarter of 2006 totalled $16.5 million, an increase of $1.6 million or 10.2%, compared to the second quarter a year ago. Sales increases in Canada are entirely due to same store sales growth, with increases reported in all four western provinces.

Sales in the U.S. in the second quarter of 2006 decreased 7.4% to $28.5 million compared to $30.8 million in the second quarter of 2005. Translation of U.S. dollar revenues at a weaker U.S. dollar exchange rate, relative to the Canadian dollar, during the second quarter of 2006 accounted for $3.0 million of this decline. This decline was partially offset by new sales of $1.1 million attributable to: two Illinois area start-ups commenced during the second quarter of 2005; three new start-ups commenced in 2006; and, new glass repair and replacement revenues generated in the Arizona, Georgia, Nevada and Washington markets. Excluding the impact of foreign currency translation and collision and glass repair start-ups, U.S. same store sales declined $0.4 million or 1.4% compared to the same period in the prior year.

Earnings before interest, income taxes, depreciation and amortization (EBITDA)¹ for the second quarter of 2006 totalled $2.5 million, or 5.5% of sales, compared to EBITDA of $2.7 million, or 6.0% of sales, in the second quarter of 2005. This decline is primarily a result of lower amortization of prepaid rebates.

Net loss for the second quarter of 2006 after giving effect to the non-controlling interest, and after discontinued operations, was $654,038 or ($0.07) per fully diluted unit compared to net earnings of $140,411 or $0.01 per fully diluted unit in the second quarter of 2005. The Fund’s net loss resulted primarily from the impact of losses in the U.S. for which no tax benefit was recorded.

For the six months ended June 30, 2006 revenue totalled $92.1 million compared to revenue of $92.2 million in the same period a year ago. EBITDA for the six months ended June 30, 2006 totalled $4.4 million, or 4.8% of sales, compared to EBITDA of $6.5 million, or 7.1% of sales, in the corresponding period a year ago. The Fund’s net loss for the six months ended June 30, 2006 was $2.4 million or ($0.26) per fully diluted unit compared to net income of $1.5 million or $0.17 per fully diluted unit in the same period a year ago.

The Fund had total debt outstanding at June 30, 2006 of $38.7 million, comprised of: $2.0 million in bank indebtedness; $7.8 million of senior bank term debt; $14.5 million of U.S. bank debt; $0.4 million of supplier debt; $0.7 million of vendor loans; $1.0 million of obligations under capital lease; and, $12.3 million in subordinate convertible debentures and exchangeable notes. This compares to $40.6 million of total debt outstanding at March 31, 2006, and $39.8 million as at December 31, 2005. Subsequent to June 30, 2006, Boyd Group prepaid US$2.8 million of U.S. bank debt held by the Fund’s senior lenders and amended senior credit facilities to increase the Fund’s operating line of credit from $12 million to $15 million.

Distributable Cash²
On December 15, 2005, the Fund suspended cash distributions to unitholders until further notice. The Trustees of the Fund and senior management of the Boyd Group determined that a temporary suspension of distributions was in the best interests of unitholders as it will allow the Boyd Group to strengthen its balance sheet and improve its cash position and financial flexibility. On March 22, 2006, the Fund announced that distributions were not anticipated to be reinstated for at least 12 to 18 months. At the end of this time period, or sooner if Boyd Group experiences meaningful improvement in its financial performance, management of Boyd Group and the Trustees of the Fund would expect to resume distributions at conservative and sustainable levels.

2006 Second Quarter Conference call & Web cast
Management of the Boyd Group Income Fund will host a conference call to discuss the Fund’s 2006 second quarter financial results on August 11, 2006 at 10:00 a.m. EST. The conference call will be webcast live at and archived for 90 days. A taped replay of the conference call will also be available until August 18 at midnight at 1-877-289-8525 or 416-640-1917, reference number 21198212#.

(¹)(²) EBITDA and Distributable Cash are not recognized measures under Canadian generally accepted accounting principles (GAAP). Management believes that in addition to revenue, net earnings and cash flows, distributable cash and EBITDA are useful supplemental measures as they provide investors with an indication of earnings from operations and cash available for distribution, both before and after debt service, capital expenditures and income tax. Investors should be cautioned, however, that EBITDA and distributable cash should not be construed as an alternative to net earnings determined in accordance with GAAP as an indicator of the Fund’s performance. Boyd’s method of calculating distributable cash may differ from other public issuers and, accordingly, may not be comparable to similar measures used by other issuers. For a detailed explanation of how the Fund’s distributable cash is calculated, please refer to the Fund’s MD&A filing for the three months ended June 30, 2006, which can be accessed via the SEDAR Web site (

About The Boyd Group Inc.
The Boyd Group Inc. is the largest operator of collision repair centres in Canada and among the largest in North America. The company operates locations in the four western Canadian provinces principally under the trade names Boyd Autobody & Glass and Service Collision Repair, as well as in six U.S. states principally under the trade name Gerber Collision & Glass. The company also operates Gerber National Glass Services, an auto glass repair and replacement referral business with affiliated service providers throughout the United States. For more information on The Boyd Group Inc. or Boyd Group Income Fund, please visit our Web site at

About The Boyd Group Income Fund
The Boyd Group Income Fund is an unincorporated, open-ended mutual fund trust created for the purposes of acquiring and holding certain investments, including a majority interest in The Boyd Group Inc. and its subsidiaries.

For further information, please contact:
Terry Smith
Tel: (204) 895-1244

Bruce Wigle
Investor Relations
Tel: (416) 815-0700 or toll free 1-800-385-5451 (ext.228)

Dan Dott
Chief Financial Officer
Tel: (204) 895-1244

This press release contains forward-looking statements, other than historical facts, which reflect the view of the Fund’s management with respect to future events. Such forward-looking statements reflect the current views of the Fund’s management and are made on the basis of information currently available. Although management believes that its expectations are reasonable, it can give no assurance that such expectations will prove to be correct. The forward-looking statements contained herein are subject to these factors and other risks, uncertainties and assumptions relating to the operations, results of operations and financial position of the Fund. The Fund assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contemplated by the forward-looking statements.

Corporate Headquarters
Boyd Group Services Inc.

1745 Ellice Avenue
Winnipeg, Manitoba, R3H 1A6
Tel: 204-895-1244
Fax: 204-895-1283