Toronto, Ontario

First Quarter 2006 Report to Unitholders

Three months ended March 25, 2006

DOMINION CITRUS INCOME FUND ANNOUNCES FIRST QUARTER RESULTS

First Quarter Highlights

• Revenue of $25,703,000 was down 10.6% due to price deflation, major retailers continuing with consolidation initiatives, shortages of quality product associated with unfavourable weather patterns and timing of some shipments to the second quarter.
• Net earnings were $767,000 compared to $603,000 last year, or basic per unit of $0.04 vs. $0.03 last year.
• Fully diluted earnings per unit were $0.04 versus $0.03 last year.
• Cash flow from operations was $3,612,000, an increase of $1,967,000 due primarily to improvements in working capital.
• A small asset acquisition was made to gain a foothold in the ‘fresh cut’ business.
• The Company declared distributions of $0.03 per unit.
• The Other Food business secured a new private label supply contract that will commence in the second quarter.
  

TORONTO, May 3, 2006 : Dominion Citrus Income Fund (Toronto Stock Exchange: DOM.UN) (“Dominion”, the “Fund”) announced first quarter net earnings of $767,000 versus $603,000 for the same period last year. Fully diluted earnings per unit were $0.04 versus the $0.03 recorded in the first quarter last year. These results reflect continuing consolidation at the retail level combined with additional direct buying.

“The 2006 first quarter earnings were up 27.2% relative to 2005,” said Jacques Lavergne, President and CEO, “and included a non-recurring insurance recovery. The Company was successful in securing several new accounts in both business segments, however, continuing consolidation coupled with the direct buying trend at the retail level has reduced overall volumes.”

“We believe 2006 will remain highly competitive which will result in continuing pressure on volumes and margins.”

Fiscal 2006 Outlook

Management believes the segments of the food industry in which the Fund participates will remain highly competitive resulting in continuing volume and margin pressures.

The Fund will continue to advance its strategy of expanding as a diversified food supplier in the food industry through the pursuit of acquisitions and alliances. The challenge continues to be the availability of attractive acquisition targets for expansion at a reasonable cost.

About Dominion

The Fund is a publicly traded, unincorporated, open-ended limited purpose income trust. On January 1, 2006, all of the common shares of Dominion Citrus Limited (“DCL”) were exchanged for trust units of the Fund. The trust units are listed on the TSX under the symbol DOM.UN. The Series A preference shares of DCL continue to be listed on the TSX under the symbol DMN.PR.A.

Dominion is a diversified food company supplying fresh produce, premium juices and maple syrup to a wide variety of customers in retail, foodservice and food distribution businesses. The Fund provides procurement, processing, repacking, sorting, grading, warehousing and distribution services to over 400 customers, with its major domestic markets being Ontario and Québec. The Fund also supplies products to customers in the United States and Europe. The website may be accessed at www.dominioncitrus.com.

Caution regarding Forward-Looking Statements

This release contains statements, which, to the extent that they are not a recitation of historical fact, may constitute “forward-looking statements”. Forward-looking statements may include financial and other projections, as well as statements regarding our future plans, objectives or performance, or our underlying assumptions. The words “estimate”, “anticipate”, “believe”, “expect”, “intend” or other similar expressions of future or conditional verbs such as “will”, “should”, “would” and “could” are intended to identify forward-looking statements. Persons reading this press release are cautioned that such statements are only expectations, and that our actual results or performance may be materially different.

Forward-looking information involves certain risks, assumptions, uncertainties and other factors, which may cause actual future results to differ materially from those expressed or implied in any forward-looking statements.

Readers should not place undue reliance on these forward-looking statements when making decisions, and should consider the date to which the statements were made. Except as required by applicable security law, management disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 
Investors:
E.A. (Ted) Atkinson
V.P. Finance & CFO,
Corporate Secretary
416 242 8341 Ext 249
email: t.atkinson@dominioncitrus.com

Media:
J.L. Lavergne
President & CEO
416 242 8341 Ext 250
email: j.lavergne@dominioncitrus.com