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Cargojet Income Fund Lowers Expectation and Announces Revised Distributions

July 22, 2008

Cargojet Income Fund (the "Fund") (TSX: CJT.UN) reported today that its results for the second quarter 2008 will be lower than expected due to an unforeseen increase in expenses related to the delay in introduction of its two B767-200ER and one B757-200ER freighter aircraft from the supplier and lower customer demand as a result of a slowing economy.  Results for the second quarter will be released August 12, 2008.  Conference call details will follow.

The unexpected delay in the introduction of these aircraft has resulted in unplanned and non-recurring sub-charter costs and significant additional crew and training costs.  In addition, record fuel prices and a slowing economy have also resulted in lower overall volumes, which the Fund expects may continue to year-end.   As a result, the Trustees of the Fund believe it is prudent to reduce cash distributions to $0.0675 per unit for the period from July 1, 2008 to July 31, 2008 and for the foreseeable future, although confidence in the fundamentals of the business remain very strong. Future distributions will be assessed by the Trustees moving forward upon review of Cargojet's customer volumes and financial performance. The distribution will be paid to unitholders of record at the close of business on July 31, 2008 and will be payable on or before August 15, 2008. 

For those unit holders holding units outside a tax deferred plan, the Fund estimates that 96% of the distributions made in 2008 will be treated as taxable income and the balance as a return of capital.  The proportion of these figures may change when the actual results for the fiscal year are calculated.

Cargojet is Canada's leading provider of time sensitive overnight air cargo services. Cargojet operates its network across North America, transporting over 885,000 pounds of time sensitive air cargo each business night, utilizing a fleet of thirty-three all cargo aircraft.

For further information, please contact:

Pauline Dhillon, VP Marketing, Public and Government Relations
(905) 501-7373 ext 135 or at
pdhillon@cargojet.com.

Notice on Forward Looking Statements:

Certain statements contained herein constitute "forward-looking statements".  Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business.  Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests" and similar expressions.  These forward-looking statements are based on current expectations and entail various risks and uncertainties.  Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate.  The issuer assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.