Acadian Timber Income Fund Reports First Quarter Results

Acadian Timber Income Fund (TSX: ADN.UN) -

Investors, analysts and other interested parties can access Acadian Timber Income Fund's 2008 First Quarter Results conference call via webcast on Wednesday, May 7, 2008 at 1:00 p.m. ET at www.acadiantimber.com or via teleconference at 1-800-319-4610, toll free in North America. For overseas calls please dial 604-638-5340, at approximately 12:50 p.m. ET. The teleconference taped rebroadcast can be accessed at 1-800-319-6413 or 604-638-9010 and enter passcode 2826.

ACADIAN TIMBER INCOME FUND REPORTS FIRST QUARTER RESULTS

All figures in Canadian dollars unless otherwise noted

Acadian Timber Income Fund ("Acadian" or the "Fund") (TSX: ADN.UN) today reported financial and operating results(1) for the three months ended March 29, 2008 (the "first quarter").

For the first quarter of fiscal 2008, Acadian generated net sales of $22.7 million on consolidated log sales volumes of 412.0 thousand m3 as compared with net sales of $26.9 million on consolidated log volumes of 482.6 thousand m3 during the first quarter of fiscal 2007.

EBITDA for the first quarter was $7.2 million or 32% of sales as compared with $9.6 million or 36% of sales for the comparable period in 2007.

"We are pleased with our operating performance in the first quarter of fiscal 2008," said Reid Carter, Chief Executive Officer of Acadian. "Distributable cash from operations was $6.3 million or 38 cents per unit, which is above our expectations and encouraging given the difficult market environment currently facing the North American wood products industry."

"Market conditions remain very challenging due to the high Canadian dollar and U.S. housing slowdown which have led to increased regional sawmill closures and curtailments," added Mr. Carter. "Fortunately, as a diversified primary producer with considerable operational flexibility, we have been able to take advantage of strong demand and pricing for softwood and hardwood pulpwood and biomass, which have helped to offset continued weakness in softwood sawlogs.

"Acadian's healthy financial condition and its ability to manage production and product mix to capitalize on market opportunities, gives us confidence that we are well positioned to preserve the long-term value of the business and meet our distributable cash target for the year."

(1) This news release makes reference to earnings before interest, taxes, depletion, depreciation and amortization ("EBITDA") and distributable cash from operations. Management believes that EBITDA and distributable cash from operations are key performance measures in evaluating the Fund's operations and are important in enhancing investors' understanding of the Fund's operating performance. As EBITDA and distributable cash from operations do not have a standardized meaning prescribed by Canadian GAAP, they may not be comparable to similar measures presented by other companies. As a result, we have provided in this news release reconciliations of net income (loss) and cash flow from operations, as determined in accordance with Canadian GAAP, to EBITDA and distributable cash from operations.

Review of Operations

2008 Financial and Operating Highlights

                                                        Three months ended
                                             -------------------------------
($ millions except per unit information)     March 29, 2008 March 31, 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net sales                                            $ 22.7         $ 26.9
EBITDA                                                  7.2            9.6
Distributable cash from operations                      6.3            8.7
Distributions declared                                  3.4            3.4
Net income (loss)(1)                                    4.7           (2.5)
Per unit - fully diluted
 Net Income (loss)(1)                                  0.22          (0.21)
 Distributable cash from operations                    0.38           0.53
 Distributions declared - Class A
  Unitholders                                          0.21           0.21
Sales volume (000s m3)                                412.0          482.6
----------------------------------------------------------------------------
(1) Net income (loss) includes the impact of the revaluation of the Class B
    Interest Liability of a subsidiary, the future income tax expense, and
    the depreciation and depletion expense, which are non-cash items
    recorded in each respective period.

Challenging weather conditions resulted in a slow start to the year, however operations caught up in February and March. Prices held up better than expected, with strength in both softwood and hardwood pulp prices supporting overall sales results. While selling prices for spruce-fir sawlogs in Acadian's NB operations were well above expectations, the NB operations faced longer hauling distances and higher associated fuel costs in order to effectively merchandize their products resulting in higher variable costs per cubic meter. Acadian's Maine results in Canadian dollar terms continued to be impacted by the strong Canadian dollar.