Income STREAMS III: Annual Financial Results to November 30, 2005.

TORONTO -- Income STREAMS III Corporation ("STQ STREAMS") today announced its annual financial results for the year ending November  30, 2005.

During the year, Equity Dividend shareholders received distributions at the 7% annualized rate. Capital Yield shareholders did not receive distributions under the variable distribution program as a result of the minimum managed portfolio threshold of $18 per unit not being achieved in any month during the year. Since inception of Income STREAMS III Equity Dividend shareholders have received a total of $4.61 per share, and the Capital Yield shareholders have received a total of $3.97 per share in distributions to November 30, 2005. The net asset value per unit (one Capital Yield share and one Equity Dividend share) increased by $1.65 to $34.50 (after all Preferred share distributions) as at November 30, 2005. The Managed Portfolio per unit was $16.71 as at November 30, 2005.

Selected Financial Information from the Annual Statement of Financial
Operations:
For the year ending November 30 ($ Millions)
                                                        2005    2004
                                                           $       $
Income                                                 2.124   1.729
Expenses                                              (2,198) (2.077)
                                                    -----------------
Net investment income                                  (.074)  (.348)
Realized option premiums and gain on sale of
 investments                                           2.920  (2.162)
Change in unrealized appreciation on
 investments/forward agreements                       12.031  14.138
                                                    -----------------
Increase (decrease) in net assets from
 operations before distributions                      14.877  11.628

STQ STREAMS is a mutual fund corporation that invests in a diversified portfolio consisting principally of common shares issued by corporations whose shares are included in the S&P 500 and the S&P/TSE 60 Index. STQ STREAMS was launched on July 11, 2001 and its investment portfolio is actively managed by Quadravest Capital Management.

STQ STREAMS' investment objectives are to provide holders of Equity Dividend shares with; (i) monthly cash dividends in the amount of $0.0875 per share to yield 7.0% per annum, and (ii) to return the original issue price of $15.00 at termination (November 30, 2013). The objectives for holders of Capital Yield shares are to provide; (i) monthly dividends of $0.2083 per share to yield 10.0% per annum, and (ii) to return the original issue price of $25.00 at termination (November 30, 2013) by way of a forward agreement with Merrill Lynch and TD Global Finance (a guaranteed subsidiary of the TD Bank). Effective July 2002, the Corporation implemented a variable distribution program for Capital Yield shareholders, in which monthly distributions are based on the size of the Managed portfolio per unit.

Please visit our web site at www.quadravest.com.

Income Streams III (TSX:STQ) (TSX:STQ.E)