Income STREAMS III Corporation ("STQ STREAMS") (TSX: STQ)(TSX: STQ.E) today announced its semi-annual financial results for the year ending November 30, 2006.

The net asset value per unit (one Capital Yield share and one Equity Dividend share) increased by $1.64 per unit to $36.14 (after all Preferred share distributions) as at November 30, 2006. The Managed Portfolio per unit was $17.40 as at November 30, 2006.

During the year, Equity Dividend shareholders received distributions at the 7% annualized rate. Capital Yield shareholders did not receive distributions under the variable distribution program as a result of the minimum managed portfolio threshold of $18 per unit not being achieved in any month during the year. Since inception of Income STREAMS III Equity Dividend shareholders have received a total of $5.66 per share, and the Capital Yield shareholders have received a total of $3.97 per share in distributions to November 30, 2006.

STQ STREAMS is a mutual fund corporation that invests in a diversified portfolio consisting principally of common shares issued by corporations whose shares are included in the S&P 500 and the S&P/TSE 60 Index.

Selected Financial Information from the Semi-annual Statement of Financial
Operations: For the year ending November 30 ($ Millions)

                                                                       2006
Income                                                                1.440
Expenses                                                            (1.877)
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Net investment income (loss)                                         (.437)
Realized option premiums and gain on sale of investments              9.093

Change in unrealized appreciation on investments/forward agreements   1.147
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Increase in net assets from operations before distributions           9.803