In the first quarter of fiscal 2007, Canadian golf specialty retailer, Golf Town, saw sales grow 6.3% to CA$31.9 million ($27.3 mm) from CA$30.0 million ($26.0 mm) last year. The growth in sales was attributable to the addition of four new stores in the spring of 2006. During the quarter Golf Town's same-store sales decreased by 1.4%. The company saw its quarterly loss widen to CA$2.0 million ($1.7 mm) from CA$811,000 ($700,000) last year.

Golf Town's 2007 store openings have included new stores in Dartmouth, Nova Scotia, Boisbriand, Quebec and St. Catharines, Ontario. A fourth store, in Brampton, Ontario store is scheduled to open in June, and two more stores in Ottawa and Windsor, Ontario are planned for later this year.

Stephen Bebis, president and CEO, “The first quarter typically represents our quietest period, before the golf season begins in most parts of Canada. This year, the season began much later than usual and this is reflected in our results.”

Gross profit as a percentage of sales increased to 32.4%, from 31.8% for the comparable period a year ago.

Bebis concluded, “The golf season has arrived and Golf Town is ready with a wide range of new technology and products for every golfer. Our stores are well stocked and ready for another great year.”

Golf Town Income Fund
	    CONSOLIDATED STATEMENTS OF
	    INCOME (LOSS)/COMPREHENSIVE LOSS AND RETAINED EARNINGS
	    (DEFICIT)
	    (UNAUDITED)
	    (in thousands of Canadian dollars, except per unit amounts)

	                                                 For the three For the three
	                                                  months ended  months ended
	                                                     31-Mar-07     31-Mar-06
	                                                             $             $
	    -------------------------------------------------------------------------

	    Sales                                               31,943        30,018
	    Cost of sales                                       21,581        20,459
	    -------------------------------------------------------------------------
	    Gross profit                                        10,362         9,559
	    Expenses
	    Selling, general and administrative                 12,419        10,542
	    -------------------------------------------------------------------------
	    Loss before amortization, interest and taxes        (2,057)         (983)
	    Amortization of fixed assets                           993           920
	    Amortization of deferred financing costs                 -            29
	    Amortization of pre-opening costs                      139            76
	    Amortization of intangible assets                      107           107
	    Interest on long-term debt                             234           185
	    Other interest                                         321           209
	    -------------------------------------------------------------------------
	    Loss before income taxes                            (3,851)       (2,509)
	    Recovery of income taxes - current                       -          (920)
	    Recovery of income taxes - future                   (1,871)         (778)
	    -------------------------------------------------------------------------
	    Net loss and comprehensive loss for the period      (1,980)         (811)
	    Retained earnings (deficit), beginning of period       845        (1,196)
	    Change in accounting policy (note 3)                  (196)            -
	    Distributions declared in the period                (3,802)       (3,334)
	    -------------------------------------------------------------------------
	    Deficit, end of period                              (5,133)       (5,341)
	    -------------------------------------------------------------------------
	    -------------------------------------------------------------------------

	    Net loss per trust unit
	    -------------------------------------------------------------------------
	      Basic                                              (0.16)        (0.06)
	      Diluted                                            (0.16)        (0.06)
	    -------------------------------------------------------------------------
	    Weighted average number of units outstanding
	     (in thousands)
	    -------------------------------------------------------------------------
	      Basic                                             12,373        12,492
	      Diluted                                           12,373        12,492
	    -------------------------------------------------------------------------
	    -------------------------------------------------------------------------