PATHFINDER announces February 2003 Distribution
and Investment Update

PATHFINDER Income Fund ("PATHFINDER") is pleased to announce that a distribution of $0.075 per trust unit will be payable on March 14, 2003 to unitholders of record on February 28, 2003. This equates to an annual yield of approximately 9% based upon yesterday’s closing price of $9.85 per unit.

PATHFINDER is an investment trust which combines the investment management experience of both Middlefield and Guardian Capital Inc., who act as Co-Advisors to the Fund, responsible for asset mix and security selection. The objectives of PATHFINDER Income Fund are to provide unitholders with a stable monthly income stream targeted to be 9% per annum and to return the original issue price upon termination of the Fund on December 31, 2012. The Fund is invested in a broadly diversified portfolio of business trusts, oil and gas royalty trusts, REITs, and pipeline and power generation trusts.

The PATHFINDER Investment Portfolio as at January 31, 2003 can be found overleaf. The asset class weightings for the portfolio are:

The Fund’s Distribution Reinvestment Plan (the "Plan") allows unitholders to automatically reinvest monthly distributions in additional units of the Fund. This feature provides unitholders with an excellent opportunity to benefit from compounding by investing distributions at a high reinvestment rate. The Plan also allows participants to purchase additional units for cash. The optional cash purchases require a minimum of $100 per payment. Please contact your investment advisor or Middlefield to enroll in the Plan.

The trust units trade on the Toronto Stock Exchange under the symbol PAZ.UN.

For further information, please contact the undersigned:

Nancy Tham
Vice President
(416) 362-0714 ext. 277.

February 18, 2003