TMX group

EDMONTON, May 30 /CNW/ - Mr. Wayne Wadley, president of CERF GP Corp.,
the general partner of Canadian Equipment Rental Fund Limited Partnership (the
"Partnership"), is pleased to report the results for the first quarter ended
March 31, 2006.

Quarter Highlights Include:
-  Revenues of $2,313,217 representing an increase of 59% over the same
   period last year,
-  Earnings of $681,697 ($0.21 per unit) representing an increase of 315%
   over same period last year,
-  Total assets increased to $7,212,470,613 representing an increase of
   43% over the same period last year.

Mr. Wadley comments, "Demand for rentals during this traditionally slower
winter period was unprecedented as contractors in all industries experienced
record demand for their services. This demand, coupled with seasonally unusual
warm weather and lack of snow cover allowed contractors to do work during the
first 1/2 of the quarter not normally associated with winter projects. This
favorable construction weather, followed by some cooler temperatures and snow
cover created an extremely high demand for construction heaters and the
related fuel. In turn CERF posted record rental and sales revenues throughout
the quarter.
Equipment sales margins, both for new and used, continue to increase
between five to ten percent as confidence abounds with contractors trying to
fill shortages. Fuelled by a growing shortage worldwide for large construction
equipment which has created waiting periods of eight weeks to two years, many
local contractors appear willing to commit to new equipment purchases and are
purchasing any available equipment to meet their needs. Predictions from most
CERF customers are for increased demand for rental equipment as they gear up
for the busy construction season.
Equipment supply shortages have had positive effects on rentals from many
perspectives. Rental rates continue to edge upward faster than inflation
allowing for increased margins on rentals. Contractors experiencing shortages
with some types of equipment are tending to hoard all types of equipment to
ensure availability when required. This helps create long term rentals which
may or may not have been necessary.
CERF was able to meet the higher demands in some key areas such as
heaters over the winter season due to our aggressive fleet expansion program
but we are still challenged to supply equipment to meet the demand in all
areas."

<<
Balance Sheets
(unaudited)
-------------------------------------------------------------------------
                                                  March 31,  December 31,
                                                      2006          2005
-------------------------------------------------------------------------
Assets
Current assets:
  Accounts receivable                          $ 2,281,298   $ 1,888,359
  Inventory and other                              194,629       397,200
-------------------------------------------------------------------------
                                                 2,475,927     2,285,559

Property and equipment                           4,648,343     4,265,327

Prepaid rent                                        88,200        88,200
-------------------------------------------------------------------------
                                               $ 7,212,470   $ 6,639,086
-------------------------------------------------------------------------
-------------------------------------------------------------------------


Liabilities and Partners' Equity

Current liabilities:
  Bank indebtedness (note 4)                   $   498,046   $   560,749
  Accounts payable and accrued liabilities         963,647       983,365
  Partner distribution payable                     146,294             -
  Callable bank debt (note 5)                      322,470       340,060
  Current portion of long-term debt (note 6)       443,958       477,901
-------------------------------------------------------------------------
                                                 2,374,415     2,362,075

Long-term debt (note 6)                          1,225,381     1,331,625

Notes payable (note 7)                             800,000       800,000
-------------------------------------------------------------------------
                                                 4,399,796     4,493,700

Partners' equity                                 2,794,586     2,145,386

Contributed surplus (note 9)                        18,088             -
-------------------------------------------------------------------------
                                               $ 7,212,470   $ 6,639,086


Statements of Operations
(unaudited)
-------------------------------------------------------------------------
                                              Three months  Three months
                                                     ended         ended
                                                  March 31,     March 31,
                                                      2006          2005
-------------------------------------------------------------------------

Revenue:                                       $ 2,313,217   $ 1,455,660
-------------------------------------------------------------------------

Expenses:
  Cost of sales                                    361,485       244,141
  General and administrative                       122,636       216,647
  Interest                                          50,352        32,367
  Operating                                        846,987       677,707
  Stock based compensation (note 9)                 18,088             -
  Amortization of property
   and equipment                                   231,964       181,305
  Gain on disposal of property
   and equipment                                      (292)      (60,492)
-------------------------------------------------------------------------
                                                 1,631,220     1,291,675

-------------------------------------------------------------------------
Net income for the period                      $   681,697   $   163,985
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Net income per unit (note 10)
  Basic                                              $0.21         $0.08
  Diluted                                            $0.21         $0.08


Additional information and full financial statements for current and past
periods may be found on the SEDAR web site at www.sedar.com.

CERF LP is a Canadian limited partnership engaged in the rental, sale and
service of industrial and construction equipment. CERF LP trades on the TSX
Venture Exchange under the symbol "CFL.UN" and currently has 3,250,967 units
issued and outstanding.

>>
%SEDAR: 00022335E