Home Equity Income Trust Announces June Distributions

TORONTO, June 10 /CNW/ - Home Equity Income Trust (TSX: HEQ-UN.TO) ("HOMEQ" or the "Trust") today announced a cash distribution of $0.09 per unit for the month of June 2008 (equivalent to $1.08 per unit on an annualized basis). The distribution is payable to unitholders of record on June 30 and will be paid on July 15, 2008.

Unitholders who are non-residents of Canada will be required to pay all withholding taxes payable in respect of any distributions by the Trust.

The Trust has an optional distribution reinvestment plan that permits unitholders to use the monthly cash distribution paid on their existing units to purchase additional units directly from the Trust without paying brokerage commissions or service charges. Participants in the plan will receive additional units equal in value to 4 percent of each distribution that is reinvested. Complete plan details can be obtained at www.homeq.ca.

Forward Looking Statements

Home Equity Income Trust from time to time makes written and verbal forward-looking statements about business objectives, operations, performance, and financial condition, including, in particular, the forecast of cash distributions and the likelihood of HOMEQ's success in developing and expanding its business. These may be included in the Annual Reports, regulatory filings, reports to unitholders, press releases, Trust presentations and other communications. These forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of HOMEQ. Actual results may differ materially from those expressed or implied by such forward-looking statements. HOMEQ does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time.

About Home Equity Income Trust

Home Equity Income Trust provides unitholders with stable monthly cash distributions from a portfolio of reverse mortgages originated by its wholly owned subsidiary Canadian Home Income Plan Corporation ("CHIP"). The Trust's units are rated SR-2 by Standard and Poor's, which assigns this rating to funds that have "a very high level of cash distribution stability relative to other rated Canadian income funds." As of March 31, 2008, the portfolio generating cash returns to the Trust comprised approximately 6,800 reverse mortgages with an accrued value of $738 million, secured by residential properties across Canada worth approximately of $2.1 billion. CHIP (www.chip.ca), has been the main underwriter of reverse mortgages in Canada since pioneering the concept in 1986.

The Trust's units trade on the Toronto Stock Exchange under the symbol HEQ.UN. Additional information on HOMEQ, including annual and quarterly reports and the Trust's distribution reinvestment plan, can be viewed at www.homeq.ca.

Contacts

Gary Krikler
Senior Vice President and Chief Financial Officer
(416) 413-4679
gkrikler@homeq.ca
or Scott Cameron
Vice President
Finance
(416) 413-6605
scameron@homeq.ca