BFI Canada Income Fund (the "Fund") (TSX:BFC.UN) today announced that it will increase future distributions by 12% to $1.5708 per trust unit, beginning with the distribution payable on March 15, 2005 to unitholders of record on February 28, 2005.

The increase comes as a result of the completion of the transaction to combine BFI Canada and IESI, which was structured to be immediately 12% accretive to the Fund's cash distributions per unit.

"We believe this increase is both sustainable and appropriate given our significantly expanded business platforms and our ongoing objective to deliver value to our unitholders," said Keith Carrigan, President and CEO, BFI Canada. "As a result of new cashflows from our recently acquired operations, we expect our payout ratio will remain very healthy going forward even at this higher distribution level. We look forward to proving this in the coming months by employing our improvement and market-focused strategies across our expanded operating platforms."

This is the Fund's second increase in monthly distributions in the past six months and third since its initial public offering. The previous increase - 10% -- was announced in August 2004.

January Distribution

The Fund also today declared a cash distribution at the previous rate of $0.116875 per Trust unit for the month of January 2005. The distribution will be payable on February 15, 2005 to unitholders of record on January 31, 2005.

About BFI Canada

BFI Canada Income Fund, through its subsidiaries, is one of North America's largest full-service waste management companies, providing non-hazardous solid waste collection and landfill disposal services for municipal, commercial, industrial and residential customers in six provinces and nine U.S. states. Its two brands, IESI and BFI Canada, are leaders in their respective markets and serve almost 1 million customers with vertically integrated collection and disposal assets. The Fund's units are listed on the Toronto Stock Exchange under the symbol BFC.UN. For more information on the Fund, visit www.bficanada.com.

To find out more about BFI Canada Income Fund (TSX:BFC.UN), visit our website at www.bficanada.com.

This document may contain forward-looking statements relating to the Fund's operations or to the environment in which it operates, which are based on the Fund's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, or are beyond the Fund's control. A number of important factors could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. These factors include those set forth in the Fund's renewal Annual Information Form for the period ended December 31, 2003. Consequently, readers should not rely on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Although the forward-looking statements contained herein are based upon what management believes to be reasonable assumptions, the Fund cannot assure unitholders that actual results will be consistent with these forward looking statements, and the Fund disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

BFI Canada Income Fund Anne MacMicken Manager, Investor and Employee Relations (416) 401-7729 Email: anne.macmicken@bficanada.com
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