Press Release

STaRS Income Fund

Co-Advised by Middlefield and Guardian Capital Inc.

LISTED ON THE TSE TODAY

Middlefield Group, on behalf of STaRS Income Fund, is pleased to announce that an initial public offering of units of STaRS Income Fund was completed today. The issue was placed by a syndicate of investment dealers co-led by CIBC World Markets Inc. and RBC Capital Markets and includes Scotia Capital Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., TD Securities Inc., HSBC Securities (Canada) Inc., Middlefield Securities Limited, Raymond James Ltd., Canaccord Capital Corporation, Desjardins Securities Inc., Dundee Securities Corporation, Wellington West Capital Inc., and Yorkton Securities Inc.

Middlefield Securities Limited and Guardian Capital Inc., both of which have significant experience investing in the foregoing asset classes, will act as Co-Advisors to the Fund, responsible for asset mix and security selection. With over $8 billion under management, Guardian provides global investment management services to mutual funds and institutional investors. Middlefield STRS Management Ltd., an affiliate of Middlefield Group, will provide administrative services to the Fund.

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 Fund will enter into one or more forward agreements with Canadian Imperial Bank of Commerce and Royal Bank of Canada that will provide for the return of 50% of the original issue price at termination in December 2013. The balance of the net issue proceeds will be invested in a broadly diversified portfolio of income trusts including REITs, oil and gas royalty trusts and income funds, supplemented by a small component of high yield debt.

The Toronto Stock Exchange symbol for STaRS Income Fund is 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.

December 12, 2001