For the second quarter ending June 30, 2002, the Davis + Henderson Income Fund is reporting solid results. During the second quarter of 2002, the business generated distributable cash of $0.3654 per unit and announced distributions of $0.3249 per unit.

For the year-to-date period Dec. 20, 2001 to June 30, 2002, distributable cash was $0.7218 per unit and announced cash distributions were $0.6925 per unit. Monthly cash distributions to June 30, 2002 have been $0.1083 per unit, equivalent to $1.30 per unit on an annualized basis.

D+H has also announced that the July distribution, payable August 30, 2002, will increase to $0.1117 per unit, equivalent to an annualized distribution of $1.34 per unit.

Also during the second quarter, D+H completed the acquisition of the remaining portion of the business previously held by MDC Corporation Inc.

Sales, net income and distributable cash for the second quarter all increased over those for the first three months of this year.