CALGARY, Jan. 20 /PRNewswire-FirstCall/ -- Precision Drilling Trust ("Precision") announces today that the cash distribution for the month of January 2006 will be Cdn$ 0.27 per trust unit of Precision. The distribution will be payable on February 15, 2006 to unitholders of record on January 31, 2006. The ex- distribution date is January 27, 2006. A payment of Cdn$ 0.27 per unit will also be made to holders of Class B limited partnership units of Precision Drilling Limited Partnership using the same record date and payment date. United States Federal Income Tax Information for 2005 Based on advice from Precision's United States tax advisors, the issued and outstanding trust units of Precision will be classified as equity rather than as debt for United States federal income tax purposes. Precision believes that the cash distributions paid in 2005, out of its current and accumulated earnings and profits, to individual United States unitholders, should be treated as qualified dividend income for United States federal income tax purposes eligible for the reduced maximum rate of tax to individuals of generally 15%. More detailed information regarding the 2005 distribution will be reported at a later date on Precision's website at http://www.precisiondrilling.com/. United States unitholders are advised to consult their own tax advisers as to the specific United States federal and state income tax consequences of having received a cash distribution in 2005 from Precision. Precision Drilling Trust is Canada's largest energy services trust. Headquartered in Calgary, Alberta, Precision is the leading provider of contract drilling services to the Canadian oil and gas industry. Precision provides customers with access to an extensive fleet of drilling and service rigs backed by a comprehensive mix of support services utilizing skilled and experienced personnel. Precision is listed on the Toronto Stock Exchange under the trading symbol "PD.UN" and in U.S. dollars "PD.U" and on the New York Stock Exchange under the trading symbol "PDS". DATASOURCE: Precision Drilling Trust CONTACT: Doug Strong, Chief Financial Officer of Precision Drilling Corporation, Administrator of Precision, 4200, 150 - 6th Avenue S.W., Calgary, Alberta, T2P 3Y7, Telephone (403) 716-4500, Fax (403) 264-0251; website: http://www.precisiondrilling.com/; Archived images on this organization are searchable through CNW Photo Archive website at http://photos.newswire.ca/. Images are free to accredited members of the media. To request a free copy of this organization's annual report, please go to http://www.newswire.ca/ and click on Tools for Investors.

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