Advantage Announces Distribution

(TSX: AVN.UN, NYSE: AAV)

CALGARY, July 5 /CNW/ - Advantage Energy Income Fund ("Advantage")
announces that the cash distribution for the month of July will be $0.20 per
Unit. The reduction in the monthly distribution rate is primarily the result
of recent weakness in natural gas prices caused by an abnormally mild winter
in the United States which has left natural gas storage at record levels.
Canadian spot market natural gas prices have declined from over $12.00 per mcf
in late 2005 to current levels of under $6.00 per mcf. The revised
distribution level represents an annualized yield of 12.6% based on the July
5, 2006 closing price of $18.98 per Unit.
The distribution will be payable on August 15, 2006 to Unitholders of
record at the close of business on July 31, 2006. The ex-distribution date is
July 27. The cash distribution is based on approximately 94.7 million Units
currently outstanding.
The CDN$0.20 per Unit is equivalent to approximately US$0.18 per Unit if
converted using a Canadian/US dollar exchange rate of 1.11. The US dollar
equivalent distribution will be based upon the actual Canadian/US exchange
rate applied on the payment date and will be net of any Canadian withholding
taxes that may apply.

Advisory

BOE's may be misleading, particularly if used in isolation. In accordance
with NI 51-101, a BOE conversion ratio for natural gas of 6 Mcf: 1 bbl has
been used which is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not represent a value equivalency at the
wellhead.

The information in this press release contains certain forward-looking
statements. These statements relate to future events or our future
performance. All statements other than statements of historical fact may be
forward-looking statements. Forward-looking statements are often, but not
always, identified by the use of words such as "seek", "anticipate", "plan",
"continue", "estimate", "expect", "may", "will", "project", "predict",
"potential", "targeting", "intend", "could", "might", "should", "believe",
"would" and similar expressions. These statements involve substantial known
and unknown risks and uncertainties, certain of which are beyond Advantage's
control, including: the impact of general economic conditions; industry
conditions; changes in laws and regulations including the adoption of new
environmental laws and regulations and changes in how they are interpreted and
enforced; fluctuations in commodity prices and foreign exchange and interest
rates; stock market volatility and market valuations; volatility in market
prices for oil and natural gas; liabilities inherent in oil and natural gas
operations; uncertainties associated with estimating oil and natural gas
reserves; competition for, among other things, capital, acquisitions, of
reserves, undeveloped lands and skilled personnel; incorrect assessments of
the value of acquisitions; changes in income tax laws or changes in tax laws
and incentive programs relating to the oil and gas industry and income trusts;
geological, technical, drilling and processing problems and other difficulties
in producing petroleum reserves; and obtaining required approvals of
regulatory authorities. Advantage's actual results, performance or achievement
could differ materially from those expressed in, or implied by, such
forward-looking statements and, accordingly, no assurances can be given that
any of the events anticipated by the forward-looking statements will transpire
or occur or, if any of them do, what benefits that Advantage will derive from
them. Except as required by law, Advantage undertakes no obligation to
publicly update or revise any forward-looking statements.
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