Exhibit 99.1

News release via Canada NewsWire, Calgary 403-269-7605

    Attention Business/Financial Editors:
    Advantage Announces Adoption of a Premium Distribution(TM), Distribution
    Reinvestment and Optional Trust Unit Purchase Plan

    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
    CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW./

    (TSX: AVN.UN, NYSE: AAV)

    CALGARY, July 24 /CNW/ - Advantage Energy Income Fund ("Advantage" or the
"Fund") announced today that it has adopted a Premium Distribution(TM),
Distribution Reinvestment and Optional Trust Unit Purchase Plan (the "Plan").
Eligible Unitholders may elect to participate in the Plan commencing with the
monthly cash distribution payable on or about August 15, 2006 to Unitholders
of record on July 31, 2006.
    Participating Unitholders must elect between the Premium Distribution(TM)
and distribution reinvestment components of the Plan.

    Premium Distribution(TM) Component
    ----------------------------------
    Under the Premium Distribution(TM) component of the Plan, eligible
Unitholders may elect to receive, on each distribution payment date, premium
cash distributions equal to 102% of the cash distributions that they would
otherwise have received if they did not participate in the Plan (subject to
proration in certain events as provided in the Plan) by reinvesting their
regular cash distributions in additional Advantage trust units as described
below but directing that the additional units be delivered to the designated
Plan broker in exchange for the premium payment. Canaccord Capital Corporation
will act as the Plan broker for the Premium Distribution(TM) component of the
Plan.

    Distribution Reinvestment Component
    -----------------------------------
    Under the distribution reinvestment component of the Plan, eligible
Unitholders may accumulate additional Advantage trust units by directing that
their cash distributions be reinvested in additional units on the applicable
distribution payment date at a price equal to 95% of the Average Market Price
(as defined in the Plan).

    Optional Trust Unit Purchases
    -----------------------------
    In addition, the Plan allows those Unitholders who participate in either
the Premium Distribution(TM) component or the distribution reinvestment
component of the Plan to purchase additional trust units from treasury at a
purchase price equal to the Average Market Price (with no discount) in minimum
amounts of $1,000 per remittance up to a maximum aggregate amount of $100,000
per month by any one Unitholder, all subject to an overall annual limit of 2%
of the total number of outstanding trust units.
    The Fund reserves the right to limit the amount of new equity available
under the Plan on any particular distribution date. Accordingly, participation
may be prorated in certain circumstances.

    Plan Enrolment
    --------------
    To enroll in either the Premium Distribution(TM) component or the
distribution reinvestment component of the Plan, eligible beneficial
Unitholders (i.e. owners of trust units that are held through a nominee such
as a broker or custodian) should contact the broker, investment dealer,
financial institution or other nominee who holds their trust units to enquire
about the applicable enrolment deadline and to request enrolment in the Plan.
Where units are held of record by The Canadian Depository for Securities
Limited or its nominee ("CDS"), CDS will provide Computershare Trust Company
of Canada, as Plan Agent, instructions as to its participation in each
component of the Plan in accordance with its usual procedures.
    Registered Unitholders (other than CDS) may enroll in the Plan and elect
between the Premium Distribution(TM) component or the distribution
reinvestment component by faxing or otherwise delivering a properly completed
and signed authorization form to Computershare Trust Company of Canada at the
fax number or address specified in the form. The Plan provides that an
authorization form must be received by 5:00 p.m. (Toronto time) on the fifth
(5th) business day immediately preceding a distribution record date in order
for the cash distribution to which the record date relates to be reinvested
under the Plan component of their choosing. As an exception to this rule,
however, and in order to better accommodate those Unitholders who wish to
participate in the Plan with respect to the upcoming distribution, registered
Unitholders (other than CDS) who wish to reinvest the cash distribution
payable on or about August 15, 2006 to Unitholders of record on July 31, 2006
will have until 5:00 p.m. (Toronto time) on Thursday, July 27, 2006 to deliver
their authorization forms to Computershare Trust Company of Canada as set
forth above.
    Generally, no commissions, service charges or brokerage fees will be
payable by Plan participants in connection with their purchase of trust units
under the Plan, but beneficial Unitholders should make enquiries with the
broker, investment dealer or financial institution through which their trust
units are held as to any policies of such party that might result in any
commissions, charges or fees being payable.
    Participation in the Plan does not relieve Unitholders of any liability
for taxes that may be payable on distributions. Unitholders should consult
their tax advisors concerning the tax implications of their participation in
the Plan having regard to their particular circumstances.
    Copies of the Plan, a related series of Questions and Answers and the
applicable forms are available on Advantage's website at
www.advantageincome.com under the heading "Investor Relations", or directly
from the Fund by calling Investor Relations as 1-866-393-0393.
    Unitholders should carefully read the complete text of the Plan before
making any decisions regarding their participation in the Plan.

    Non-Resident Unitholders
    ------------------------
    Please note that registered and beneficial owners of Advantage trust
units who are not resident in Canada are not eligible to participate in the
Plan.

    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in any jurisdiction. The Advantage
trust units have not been and will not be registered under the United States
Securities Act of 1933, as amended, or any state securities laws, and may not
be offered or sold in the United States or to any U.S. person absent
registration or an applicable exemption from the registration requirements of
such laws.

    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.

    (TM)denotes trademark of Canaccord Capital Corporation

    %SEDAR: 00016522E          %CIK: 0001259995

    /For further information: please contact: Investor Relations, Toll free:
1-866-393-0393; Advantage Energy Income Fund, 3100, 150 - 6th Avenue SW,
Calgary, Alberta T2P 3Y7, Phone: (403) 261-8810, Fax: (403) 262-0723; Web
Site: www.advantageincome.com; E-mail: advantage(at)advantageincome.com/
    (AVN.UN. AAV)

CO:  Advantage Energy Income Fund

CNW 14:21e 24-JUL-06