Mr. Mike Pyle reports

EXCHANGE INCOME CORPORATION ANNOUNCES EARLY REDEMPTION OF 7 YEAR 5.75% DEBENTURES DUE MARCH 31, 2026

Exchange Income Corp. has delivered notice to the holders of the corporation's outstanding seven-year 5.75 per cent convertible unsecured subordinated debentures due March 31, 2026, that pursuant to Section 4.2 of the trust indenture governing the debentures dated March 26, 2019, the corporation will, effective Feb. 13, 2025 (the redemption date), redeem all issued and outstanding debentures, plus accrued interest thereon.

The corporation is taking the step to redeem these debentures in the first quarter as the debentures become current during this quarter. In accordance with the trust indenture, holders of these debentures may convert the outstanding debentures into common shares of Exchange Income at a price of $49.00 per share, which is at a discount to the closing price of Exchange Income's common shares of $57.19 per share on Jan. 8, 2025, the date of this press release.

The corporation encourages individual holders of debentures to review redemption instructions from their financial institution to ensure a request for conversion is submitted in advance of the cut-off time set by the debentureholder's financial institution. This can be several days in advance of the redemption date and is not controlled by the corporation.

There are currently 85,957 debentures issued and outstanding in the aggregate principal amount of $85,957,000 ($1,000 per debenture) as at the date hereof. Accordingly, on the redemption date, subject to compliance with the trust indenture, the holder of each debenture (unless converted prior to the redemption date in accordance with the terms of the trust indenture) will receive a total payment of $1,021.4246575, comprised a principal repayment of $1,000.00 and interest of $21.4246575 for the 136-day period from Sept. 30, 2024, up to, but excluding, the redemption date. All interest on the debentures shall cease from and after the redemption date.

Certificates representing the debentures must be tendered to the indenture trustee, BNY Trust Company of Canada, 1 York St., sixth floor, Toronto, Ont., M5J 0B6, attention: Operations Dept.

About Exchange Income Corp.

Exchange Income is a diversified acquisition-oriented company, focused in two segments: aerospace and aviation and manufacturing. The corporation uses a disciplined acquisition strategy to identify already profitable, well-established companies that have strong management teams, generate steady cash flow, operate in niche markets and have opportunities for organic growth.

We seek Safe Harbor.