In clarification to the press release issued on January 21, 2005, BFI Canada Income Fund (the "Fund") (TSX:BFC.UN) will increase future annual distributions by 12% to $1.5708 per trust unit up from the previous annual rate of $1.4025 per trust unit. Monthly distributions of $0.1309 per trust unit will commence beginning with the distribution payable on March 15, 2005 to unitholders of record on February 28, 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 (TSX:BFC.UN)

SOURCE: BFI Canada Income Fund

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