Front Street Capital 2004 (“Front Street Capital”) has announced that the special meeting of unitholders of Front Street Long/Short Income Fund (TSX: FLS.UN) (“FSLS”), originally contemplated to be held on May 10, 2007, will now be held on July 5, 2007. The purpose of the meeting is now to approve the merger of FSLS into Front Street Rollover Fund Limited (“Rollover Fund”), a mutual fund corporation managed by Front Street Capital.

A meeting of the shareholders of Rollover Fund will be held on the same date to, among other matters, approve this merger and to approve a reorganization of the capital structure of Rollover Fund to convert it into a “capital class fund”. In particular, shareholders of Rollover Fund will be asked to vote on a proposal to reorganize its capital structure such that it would offer multiple classes of shares, issuable in series, with each share class referable to a particular portfolio of assets. The reorganized company would be renamed “Front Street Opportunity Funds Ltd.”.

Assuming these changes are approved by the shareholders of Rollover Fund, and the merger of FSLS into Rollover Fund is approved by the unitholders of FSLS, the existing portfolio assets of FSLS would be transferred to Front Street Opportunity Funds Ltd. in return for the Front Street Yield Opportunities Fund class of shares of Front Street Opportunity Funds Ltd. These portfolio assets would be maintained as a separate portfolio by Front Street Opportunities Fund Ltd., for the exclusive benefit of holders of the Front Street Yield Opportunities Fund class of shares. As part of the merger, unitholders of FSLS would receive one Front Street Yield Opportunities Fund share for each unit in FSLS held. If the shareholders of Rollover Fund do not approve these changes, then unitholders of FSLS will be asked to approve its merger into a newly formed capital class company (to be named Front Street Opportunity Funds Ltd.), on substantially the same basis. This merger would not in either case be effected on a rollover basis for tax purposes, and so would be treated as a taxable disposition.

As with other capital class funds, if investors switch their shares of any series of the Front Street Yield Opportunities Fund class of shares for shares of any other class of Front Street Opportunity Funds Ltd. (each such additional share class effectively representing a separate fund), or if they switch from one series of shares within a class to another series, the switch occurs on a “rollover” basis so that investors generally will not realize a capital gain or a capital loss on the switch.
Front Street Capital believes that the capital reorganization of Rollover Fund, in conjunction with the proposed merger, should benefit investors in both funds through the ability to switch tax-free between funds with different investment strategies and investment approaches all within the context of a larger and hence more cost effective fund structure.
Front Street Capital intends to file a prospectus for the various share classes of Front Street Opportunity Funds Ltd. under National Instrument 81-104.

Additional details regarding the proposed changes to FSLS, as well as the changes to Rollover Fund relevant to unitholders of FSLS, will be outlined in an information circular that will be sent in June to unitholders of record on June 1, 2007. The information circular will also be available at www.sedar.com. Unitholders of FSLS are encouraged to complete voting instruction forms in order that their units can be voted at the meetings.

For further information:
Front Street Capital
Investor Relations
1-800-513-2832
or www.frontstreetcapital.com