Press Release

Over-Allotment Option Exercised

STaRS Income Fund ("STaRS") announced today that it has completed the issuance of an additional 400,000 trust units for aggregate gross proceeds of $4,000,000 pursuant to the over-allotment option granted to the agents in STaRS’ recently completed initial public offering. Together with the $80,000,000 previously raised, the Trust has raised aggregate gross proceeds of $84,000,000. The offering was 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 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 trade on the Toronto Stock Exchange under the symbol STZ.UN.

The objectives of STaRS 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.

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

December 21, 2001