Advanced Fiber Technologies Income Fund Signs a Letter of Intent for the Acquisition of Optimum Filtration.

Business Editors

LENNOXVILLE, Quebec--(BUSINESS WIRE)--Jan. 26, 2004

Advanced Fiber Technologies (AFT) Income Fund (TSX:AFT.UN) announced today that it has signed a letter of intent to acquire the assets of Optimum Filtration, conditional on due diligence and other customary conditions.

Established in 1995, Optimum is based in Montreal. It is involved in the design and manufacture of screw presses and components, as well as providing process optimization and other services to the pulp and paper industry. Screw presses are used to thicken pulp or to increase the consistency of sludge before disposal. Similar to the screening and refining equipment that make up AFT's product offering, screw presses contain several technical wear parts that are subject to wear and tear.

Optimum offers medium- to high-consistency screw presses with distinctive features that greatly accelerate the throughput of pulp and facilitate equipment maintenance. These features include the Opti-Screen split baskets, the patented AXcelerator throughput enhancer and the special fabricated screw shafts, all of which can be retrofitted to most existing screw presses.

Optimum main activities are in the repair and maintenance as well as the rebuild and upgrade of existing screw presses. Their sales are primarily concentrated in Canada, but also include the U.S. and South America. The Optimum technology, which represents a strong synergy with AFT's current technical wear parts portfolio, has the potential to provide productivity and cost-saving benefits to the majority of AFT's customers.

"We are very pleased to announce this exciting association between AFT and Optimum," commented Mr. Roch Leblanc, President and CEO of AFT Income Fund. "The addition of the Optimum technology to our product offering, combined with the established strength of AFT's international marketing, technical support and distribution network, further builds upon the value that we offer pulp and paper mills worldwide."

Both parties have agreed to keep the details of this accretive acquisition confidential until the transaction is closed, tentatively in March 2004 or earlier. KPMG Corporate Finance acted as financial advisor to Optimum Filtration in connection with its sale to AFT.

Advanced Fiber Technologies (AFT) Income Fund is a limited purpose trust established to hold the securities of Advanced Fiber Technologies (AFT) Trust. AFT uses its advanced screening and refining component technology and in-depth knowledge of pulp screening and refining processes to provide customized screening and refining solutions to pulp and paper producers. Pulp screens are used to remove contaminants from pulp, a process that is critical to ensuring the quality of the pulp and, in turn, the quality of the resulting paper products. Pulp refining is an adjacent process to pulp screening process and is mostly used to enhance pulp properties. AFT is one of the world's oldest and largest producers of pulp screening components, having celebrated its 100th year of operations in March 2003.

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.