Advanced Fiber Technologies (AFT) Income Fund Announces an Agreement with its Noteholders and an Amendment to the Put Option for the Finebar Business.

LENNOXVILLE, Quebec -- Advanced Fiber Technologies (AFT) Income Fund ("AFT")(TSX:AFT.UN) announces favourable developments with holders of its Senior Secured Notes and with the owner of the Finebar(R) business, Norwalk Industrial Components ("NIC").

While non compliance by AFT with the financial covenants under the Trust Indenture continues, the Noteholders have agreed to forbear from exercising rights and recourse under the Trust Indenture until June 30, 2006, subject to the following:

- on a quarterly basis, 50% of distributable cash will be used to permanently reduce the principal amount of the Notes;

- AFT must meet minimum EBITDA covenants calculated on a 2006 year-to-date basis, starting March 31, 2006. It must also continue to maintain a minimum current ratio of 1.50 to 1;

- AFT must obtain, upon notice by the Noteholders, injections of capital of up to $800,000 by way of equity or debt subordinated to the Senior Secured Notes;

- also upon notice by the Noteholders, on or after February 15, 2006, AFT may be required to obtain an operating line of credit for an amount of $1.2 million subject to a first ranking security on the inventory and receivables. AFT will have 30 days to obtain such line of credit upon notice. AFT currently has cash on hand of approximately $5 million, which is expected to be sufficient to meet current operating needs without establishing such new operating line of credit;

- forbearance fee of $135,000.

Management of AFT believes that, if required to obtain such operating line of credit and injections of capital, it would be available as two significant unitholders have committed and agreed to provide required guarantees for the operating line of credit and injections of capital by way of equity, subordinated debt or a combination thereof.

The terms of the commitments from the two significant unitholders have been approved by the independent Trustees of AFT.

AFT also announces that amendments to its existing contractual arrangements for the Finebar(R) business were entered into whereby shorter payment terms for purchases made by AFT of Finebar(R) products were agreed to and the put option for the Finebar(R) business was cancelled and terminated. With these amendments, AFT retains the benefits of its call option up to July 31, 2006.

About AFT

Advanced Fiber Technologies (AFT) Income Fund is a limited purpose trust established to hold the securities of Advanced Fiber Technologies (AFT) Trust. AFT is one of the oldest and largest producers of pulp screening components, having celebrated its 100th year of operations in March 2003. AFT's product portfolio comprises three distinct but complementary technologies: pulp screening, pulp refining and pulp dewatering. Pulp screening components are used to separate contaminants from pulp, a process that is critical to ensuring the quality of the pulp and the quality of the resulting paper products. Pulp refining is adjacent to the pulp screening process and is mostly used to enhance pulp properties. Dewatering is a process used to thicken pulp or to increase consistency of sludge before disposal.

Forward-looking Information

The statements contained in this news release that are forward-looking are based on current expectations, and are subject to a number of uncertainties and risks, and actual results may differ materially. These uncertainties and risks include, but are not limited to: the dependence on certain key suppliers, competitive pressures and changes in market activity, risks associated with international operations and foreign exchange, legal proceedings, environmental, health and safety and other regulatory requirements. Further information can be found in the disclosure documents filed by Advanced Fiber Technologies (AFT) Income Fund with the securities regulatory authorities, available at www.sedar.com.

Advanced Fiber Technologies (AFT) Income Fund (TSX:AFT.UN)