NEWS RELEASE

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

TERANET INCOME FUND FILES PRELIMINARY PROSPECTUS FOR INITIAL PUBLIC OFFERING OF UNITS

Toronto, May 9, 2006 – Teranet Income Fund (the "Fund") and Teranet Inc. ("Teranet") announced today that a preliminary prospectus has been filed with all securities regulatory authorities throughout Canada for an initial public offering of units. The Fund will use the net proceeds of the offering to indirectly acquire the business from the current shareholders of Teranet.

Teranet is a leading provider of integrated land-based information products and services. Teranet enables customers to conduct electronic registrations as well as title and Writs searches relating to real property in Ontario. Teranet's well-established network of customers includes lawyers, paralegals, real estate brokers and agents, search houses, title insurers, and financial institutions, among others.

A portion of the net proceeds of the offering will be paid to the Province of Ontario pursuant to the terms of financial arrangements as required under the Participation and Ownership Restriction Agreement dated August 5, 2003. The balance of net proceeds will be used to fund working capital and other reserves for Teranet and to enable Teranet to pay certain expenses. The underwriting syndicate to be formed in connection with the offering is being co-led by RBC Capital Markets and CIBC World Markets Inc.

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement of such Act.

This press release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.

ABOUT TERANET

Teranet is a leading provider of integrated land-based information products and services.  Teranet operates in Ontario and provides access to the Ontario Electronic Land Registration System ("ELRS") through its proprietary software application Teraview. This product enables customers to conduct electronic registrations as well as title and writs searches relating to real property.  Teranet has the exclusive right, under license from the Province, to access the data in and operate the ELRS and the Writs of Execution database, and create and market value-added products and services in connection with the ELRS and Writs, until March 31, 2017.  Teranet has leveraged its core capabilities to create electronic service offerings in complementary information and e-commerce areas.

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Copy of preliminary prospectus available at www.sedar.com

Contact:
Bonnie Foster, Vice President Corporate Communications
416-643-1095
bonnie.foster@teranet.ca
www.teranet.ca