Ag Growth Acquires Applegate Steel

WINNIPEG, MANITOBA, Jan 15 (MARKET WIRE) --
Ag Growth Income Fund (TSX: AFN.UN) ("Ag Growth" or the "Fund")
announced today it has entered into an agreement to acquire substantially
all of the operating assets of Applegate Steel Inc. ("Applegate") of
Saratoga, Indiana, for USD $3.0 million.

Applegate manufactures livestock gates, panels, feeders and stock tanks
at locations in Indiana and Iowa. Revenues from Applegate's business over
the last number of years have ranged from USD $9 million to over USD $12
million.

Ag Growth did not purchase Applegate's manufacturing facility in
Saratoga, Indiana, but instead will move manufacturing operations to
Union City, Indiana. The Fund acquired a 160,000 square foot facility in
Union City in November 2007 to provide manufacturing capabilities in its
core U.S. market, in a region with ready access to labour, and to help
alleviate labour constraints in western Canada. Increasing production in
the U.S. will also assist the Fund in reducing its foreign currency
exposure.

Rob Stenson, Chief Executive Officer of the Fund, stated, "We are very
pleased to announce the acquisition of Applegate. The Applegate product
line, which has been in existence for almost 50 years, complements
certain products manufactured by the Fund's Wheatheart and Edwards
divisions and provides the Fund with a more substantial footing in the
livestock end of the agricultural market. It is also very significant to
the Fund that Applegate's management and in place workforce will allow us
to service our expanding market by more quickly transferring certain
manufacturing from our labour constrained western Canadian operations to
the facility in Union City."

FINANCING

The acquisition of Applegate Steel will initially be funded by drawing on
the Ag Growth cash balance. Subsequent to closing the Fund will consider
drawing on its available credit facilities with TD Commercial Banking and
CIBC Commercial Banking.

Company Profile

Ag Growth is a leading manufacturer of portable and stationary grain
handling, storage and conditioning equipment, including augers, belt
conveyors, grain storage bins, grain handling accessories and grain
aeration equipment. Ag Growth's sales, marketing, and distribution system
is comprised of approximately 1,400 dealers and distributors that
distribute product in 48 states, nine provinces, and overseas.

Non-GAAP measures

References to "EBITDA" are to earnings before interest, income taxes,
depreciation, and amortization. Management believes that, in addition to
net income or loss, EBITDA is a useful supplemental measure in evaluating
its performance. EBITDA is not a financial measure recognized by Canadian
generally accepted accounting principles ("GAAP") and does not have a
standardized meaning prescribed by GAAP. Management cautions investors
that EBITDA should not replace net income or loss as an indicator of
performance, or cash flows from operating, investing, and financing
activities as a measure of the Fund's liquidity and cash flows. The
Fund's method of calculating EBITDA may differ from the methods used by
other issuers.

Forward-Looking Statements

The statements contained in this news release may contain forward-looking
statements that reflect our expectations regarding the future growth,
results of operations, performance and business prospects, and
opportunities of the Fund. Forward-looking statements contain such words
as "anticipate", "believe", "continue", "could", "expects", "intend",
"plans" or similar expressions suggesting future conditions or events.
Such forward-looking statements reflect our current beliefs and are based
on information currently available to us. Forward-looking statements
involve significant risks and uncertainties. A number of factors could
cause actual results to differ materially from results discussed in the
forward-looking statements, including changes in national and local
business conditions, decreased crop yields, industry cyclicality, and
competition. These risks and uncertainties are fully described in our
2007 Annual Report and our Annual Information Form. Further information
about these and other risks and uncertainties can be found in the
disclosure documents filed by Ag Growth Income Fund with the securities
regulatory authorities, available at www.sedar.com.

Contacts:
Ag Growth Income Fund
Investor Relations
Steve Sommerfeld
(204) 489-1855
Email: steve@aggrowth.com

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