Sources Media Release

Livingston acquires U.S. air-sea broker and forwarder, Osowski & Co. Int'l


Attention Business Editors

April 1, 2003

Toronto, Canada - Livingston International, Inc., a wholly owned U.S. subsidiary of Livingston International Inc., has acquired 100 per cent of the shares of Osowski & Co. International, Ltd. (Osowski), a U.S. air-sea broker and forwarder based in Chicago, Illinois, Livingston International CEO Peter Luit announced today. Livingston is owned by the Livingston International Income Fund, which trades on the Toronto Stock Exchange (TSX) under the symbol LIV.UN.

The full purchase price will depend on the results of the acquired business over the next three and a half years. The initial payment was financed by a draw down under Livingston’s current credit facility, which was amended for such purposes, and the balance will be paid on an earn-out basis, subject to meeting certain client retention targets. This transaction is expected to be immediately accretive to unitholders.

Osowski is a non-asset-based customs broker and freight forwarder and has annual net revenues of approximately US $1.4 million, earnings before taxes in 2002 of US $175 thousand and normalized EBITDA for 2002 (see note below) of US $375 thousand. Osowksi principal, Ray Osowski, will continue to run the operations as Director, Client Services. The business will be integrated over the next three to six months with Livingston’s existing U.S. brokerage operations. This transaction increases the number of staff in Livingston’s U.S. business by 15 people.

This acquisition is part of Livingston’s growth strategy to expand its customs brokerage and freight forwarding business. It provides Livingston’s current 13,000 clients with an additional service offering in the ever-growing U.S. market.

Note: While EBITDA is not a recognized measure under Canadian generally acceptable accounting principles (GAAP), management believes it to be a useful supplemental measure. EBITDA should not be construed as an alternative to net income as an indicator of performance or to cash flows. Livingston’s method of calculating EBITDA may differ from other companies’ and may not be comparable to measures used by other companies.

Livingston International Income Fund is a trust that holds the securities of Livingston International Inc., which is Canada’s leading customs broker and trade-related services company facilitating two-way trade between the United States and Canada. Based in Toronto, Ontario, the company has over 70 offices and over 1650 employees located at key border points and other strategic locations across Canada and the United States. (30)

For more information, contact:
Dawneen MacKenzie
Vice-President, Public Affairs
1-800-387-7582 ext. 3109

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