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Cargojet Income Fund Files Final Prospectus for IPO

Toronto, Ontario, June 2, 2005 – Cargojet Income Fund (the “Fund”) and Cargojet Holdings Ltd. (“Cargojet”) announced today that the Fund has filed a final prospectus with the securities regulatory authorities in each of the provinces and territories of Canada for an initial public offering of 5,954,545 units at a price of $10 per unit for total gross proceeds of $59,545,450. Based on the offering size and price, the units are expected to provide an initial annual yield of 11.0% through the payment of monthly distributions. The Fund also granted to the underwriters of the offering an over-allotment option, exercisable within 30 days of closing, to acquire an additional 297,727 units on the same terms and conditions.

The Fund will use the net proceeds of the offering to indirectly acquire the outstanding shares of Cargojet from the current shareholders of Cargojet. The current shareholders and employees will continue to retain a significant interest in Cargojet following completion of the acquisition.

The offering is being underwritten by a syndicate co-led by RBC Dominion Securities Inc., as sole bookrunning manager, and BMO Nesbitt Burns Inc. and including CIBC World Markets Inc., Scotia Capital Inc. and Genuity Capital Markets.

These securities have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration or applicable exemption from the registration requirements of that Act. This news release does not constitute an offer for sale of these securities in the United States of America.

Cargojet is Canada’s leading provider of time sensitive overnight air cargo service. Cargojet operates its network from coast to coast transporting over 500,000 pounds (226.8 tonnes) of volumetric time sensitive air cargo to thirteen major cities in Canada each business night.

For further information, please contact:

P. Dhillon
Vice President Marketing, Public & Government Relations
Tel: (905) 501 7373
pdhillon@cargojet.com