Press Release

STaRS Investment Status

STaRS Income Fund ("STaRS") is pleased to announce that the net proceeds from its initial public offering are now invested and it is on track to meet its monthly distribution target of $0.075 per unit. The Fund will make its first distribution on March 15, 2002 to unitholders of record on February 28, 2002. This equates to an annual yield of 9% based upon the original issue price of $10.00 per unit.

The current asset class weightings for the STaRS Managed Portfolio are:

STaRS is Middlefield’s third closed-end investment trust and the first combining the investment management experience of both Middlefield and Guardian Capital Inc., who act as Co-Advisors to the Trust, responsible for asset mix and security selection. The objectives of STaRS Income Fund are to provide unitholders with a stable monthly income stream of 9% per annum, as well as capital preservation and appreciation. The Managed Portfolio is being invested in a broadly diversified portfolio predominantly comprised of income trusts including REITs, oil and gas royalty trusts and income funds, supplemented by a small component of high yield debt.

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

For further information, please visit our website at www.middlefield.com or contact Nancy Tham, Vice-President, at (416) 362-0714 ext. 277.

January 24, 2002