Press Release

STaRS Income Fund

IPO CLOSES AT $80 MILLION

Middlefield Group is pleased to announce that STaRS Income Fund has completed its initial public offering of 8,000,000 trust units at a price of $10.00 per unit for gross proceeds of $80,000,000 in an offering co-led by CIBC World Markets Inc. and RBC Capital Markets. The other syndicate members are 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.

STaRS Income Fund is Middlefield’s third closed-end investment trust and the first combining the investment management experience of both Middlefield and Guardian Capital Inc., who will act as Co-Advisors to the Trust, responsible for asset mix and security selection. The trust units will trade on the Toronto Stock Exchange under the symbol STZ.UN.

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 Trust will enter into a forward agreement with Canadian Imperial Bank of Commerce that will provide for the return of 50% of the original issue price at termination of the Trust in December 2013, with the balance of net issue proceeds 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.

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