Avion Acquires 86% Of Atlas Under Its Offer

Avion Group hf (“Avion”) and Atlas Cold Storage Income Trust (“Atlas”) (TSX:FZR.UN) today jointly announced that as of midnight local time October 30, 2006, approximately 56.2 million units of Atlas, representing approximately 85.8% of the outstanding units of Atlas on a fully diluted basis, had been deposited to Avion’s offer to acquire all of the outstanding units of Atlas at $7.50 per unit.

Avion Group hf (“Avion”) and Atlas Cold Storage Income Trust (“Atlas”) (TSX:FZR.UN) today jointly announced that as of midnight local time October 30, 2006, approximately 56.2 million units of Atlas, representing approximately 85.8% of the outstanding units of Atlas on a fully diluted basis, had been deposited to Avion’s offer to acquire all of the outstanding units of Atlas at $7.50 per unit.
Avion also announced that it intends to take up the deposited units on November 1, 2006 for payment on or about November 2, 2006.

In accordance with its stated purpose of acquiring 100% of the issued and outstanding units of Atlas, Avion intends to take immediate steps to acquire all remaining Atlas units, which it expects to complete on or about November 3, 2006.

Atlas announced that it expects to de-list its units from the TSX as promptly as practical upon meeting the requirements of the TSX, which is expected to occur on or about close of markets November 3, 2006. Atlas also announced that it will file appropriate notices and applications with the Canadian Securities Administrators to enable it to cease to be a reporting issuer immediately following completion of the acquisition of the remaining outstanding units of Atlas.

Avion’s Executive Chairman, Magnus Thorsteinsson, said “We are thrilled to have come to a successful and friendly conclusion to our acquisition of Atlas. Atlas is a great company that has enjoyed a number of recent successes and accomplishments. It is clear we share the same overall vision to continuously deliver high-quality logistics services to our customers.”

David Williamson, Chief Executive Officer of Atlas, stated “this is an exciting time for Atlas as we join forces with an expansive and quickly growing international transportation and cold storage company. I am particularly pleased that Atlas is becoming part of a company that recognizes our recent accomplishments and our plans for continued growth.”

Avion worked in partnership with Toronto-based KingStreet Capital Partners to structure and finance the acquisition. KingStreet, through KingStreet Real Estate Growth LP No 2, is providing structured real estate secured financing to the transaction.
Atlas retained BMO Capital Markets and Brascan Financial Real Estate Group to act as financial advisors and McCarthy Tetrault LLP to act as its legal advisors. Atlas retained Osler, Hoskin & Harcourt LLP to act as legal advisors to its Board of Trustees.
Avion retained CIBC World Markets Inc. and RBC Capital Markets to act as financial advisors and dealer managers and Bennett Jones LLP and Goodmans LLP to act as legal advisors.

About Avion Group hf
Avion Group hf is a leading investment company organized into two business divisions specializing in air, land and sea transportation solutions worldwide. Avion, with a market capitalization of approximately CDN$1 billion, is one of the largest companies listed on the Icelandic Stock Exchange (ICEX) and is one of the fastest growing companies in Europe. The offer was made through Eimskip Atlas Canada, Inc., a newly founded subsidiary of Eimskipafelag Islands ehf, Avion’s operating subsidiary.

About Eimskipafelag Islands ehf, excluding Atlas
Founded in 1914, with approximately one third of its initial capital stock raised in Canada, Eimskip was the first Icelandic shipping company. Today it is the largest transportation company in that country offering total transportation solutions to its customers, including ocean freight, reefer logistics, air freight and inland transportation with particular expertise in temperature controlled logistics and storage. Eimskip operates at 104 operational bases in 21 countries in Europe, Latin America, Asia and North America, including St. John’s, Newfoundland. Eimskip has over 40 temperature-controlled facilities worldwide with a storage capacity of more than 600,000 tons as well as a fleet of 40-50 vessels and 640 trucks. Eimskip’s employees worldwide total 4,000.

About KingStreet Capital Partners
KingStreet Capital Partners is a Private Equity real estate investment business seeking opportunities where active management can create value. KingStreet has closed two investment funds totaling $570 million of equity from 11 institutional investors for a $2.0 billion investment program. KingStreet implements value creation plans through structuring financial solutions for its partners and implementing real estate strategies to maximize value.

About Atlas
Atlas Cold Storage Income Trust through its operating arm, Atlas Cold Storage, is an integral part of the supply chain of the North American frozen and chilled food industry, providing warehousing, distribution and logistics services. Through an integrated network of 52 facilities, Atlas Cold Storage provides a broad range of temperature-controlled storage, transportation and third party logistics management services. Atlas Cold Storage Income Trust units are listed on the Toronto Stock Exchange under FZR.UN.
This news release may contain certain forward-looking statements. These forward-looking statements include, among others, statements with respect to Atlas’ beliefs, plans, expectations, anticipations, estimates and intentions. By their nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist those predictions, forecasts, projections and other forward-looking statements will not be achieved. Atlas cautions readers not to place undue reliance on these statements as a number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the risk factors identified from time to time in Atlas’ filings with Canadian securities regulators, in reports to unitholders and in other communications, and other uncertainties and potential events. Atlas does not undertake to update any forward-looking statements contained in this news release.

For further information regarding Atlas: John Mastrella, Vice President Finance, Atlas Cold Storage, (416) 512-3955/(FZR.UN.)
For further information regarding Avion: Georgeson Shareholder Communications Canada Inc., 100 University Avenue, 11th Floor, South Tower, Toronto, Ontario, M5J 2Y1, (Toll free) 1-866-390-5140; Avion Group, Avion House, Hlidasmari 3, 201 Kopavogur, Iceland, Eggert Skulason, + 354 856 5100, eggert@franca.is; Barnes McInerney Inc., 120 Adelaide Street West, Suite 2200, Toronto, Ontario, M5H 1T1, John Vincic, (416) 367-5000 ext. 249, jvincic@barnesmcinerney.com.

Contact Information

Dögg Hjaltalín

Director - Investor Relations

Avion Group

Contact via E-mail