News

06.11.2006

Completion of Avion Bid for Atlas

Toronto, Ontario, November 3, 2006 – Avion Group hf (“Avion”) and Atlas Cold Storage Income Trust (“Atlas”) today announced that Avion has now taken steps to take up and pay for all units tendered to its $7.50 per unit bid which expired at midnight (local time) on October 30, 2006.  The number of units taken up and paid for represents approximately 86% of the issued and outstanding units of Atlas Cold Storage Income Trust (fully diluted).

As previously announced, Avion will take immediate steps to acquire all the remaining issued and outstanding units of Atlas Cold Storage Income Trust at $7.50 per unit.  Funds are expected to be deposited with the Trust’s Registrar and Transfer Agent by the end of business on November 3, 2006 for the purpose of redeeming all units not tendered to the Avion bid by its expiry on October 30, 2006.  The redemption of the remaining outstanding units will be effective at that time. 

Atlas units will no longer trade on the Toronto Stock Exchange after the end of business on November 3, 2006.  Atlas will be taking steps promptly to give notices and obtain appropriate orders to permit it to cease reporting as a reporting issuer in Canada.
Following the take-up and payment for units, the existing Trustees and Directors of Atlas Cold Storage Income Trust and Atlas Cold Storage Holdings Inc. retired.  As of November 3, 2006, the new Trustees of the Board of Atlas Cold Storage Income Trust are: Jon Love, Joseph Mazzocco and Magnus Thorsteinsson.  The Directors of Atlas Cold Storage Holdings Inc. replacing the retiring directors as of November 3, 2006 are Baldur Gudnason, Joseph Mazzocco and Reynir Gislason.

Atlas and Avion further announced that the parties have agreed that effective today, David Williamson, the current Chief Executive Officer of Atlas, in an amicable parting, will be replaced by Reynir Gislason, the current and continuing Chief Executive Officer of Eimskip Americas, a subsidiary of Avion Group.  Avion’s Executive Chairman Magnus Thorsteinsson said “David Williamson has been Chief Executive Officer for the last two and a half years and has served the organization with dedication and commitment.  He took the reins of Atlas at a very challenging time and much has been accomplished since that time. Under his leadership, credibility and financial health were restored at Atlas and decisive action was taken to improve Atlas’ operations and performance. We appreciate David’s many contributions to the company and wish him well in his future endeavours.”

Reynir Gislason, the new Chief Executive Officer of Atlas said “Atlas is a great company with a dedicated management team that has enjoyed a number of recent successes and accomplishments that we intend to build upon. I believe that Avion’s complementary and extensive operations in shipping, trucking and storage will facilitate Atlas’ current plans to expand their presence in public refrigerated warehousing, third party logistics and transportation. The combination of our companies will allow us to pursue and accelerate this vision, ensuring Atlas’ existing customers are offered the same quality of service across an even broader spectrum of the supply chain.”

David Williamson, the departing Chief Executive Officer of Atlas, stated “this is an exciting time for Atlas as we join forces with an expansive and quickly growing international transportation and cold storage company. I am particularly pleased that we are joining forces with a company that recognizes our recent accomplishments at Atlas and supports our plans for continued growth. I am impressed with the drive and energy of Reynir and the team at Avion, and I believe they are very well placed to accelerate the expansion of our supply chain offering to existing and new customers.”

Avion worked in partnership with Toronto-based KingStreet Capital Partners to structure and finance the acquisition.  KingStreet, through KingStreet Real Estate Growth LP No 2, is providing structured real estate secured financing to the transaction.