Coast Wholesale Appliances Income Fund
TSX : CWA.UN

Coast Wholesale Appliances Income Fund

January 05, 2009 08:00 ET

Coast Wholesale Appliances Income Fund Completes Acquisition of Independent Ontario Appliance Dealer

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 5, 2009) - Coast Wholesale Appliances Income Fund (the Fund) (TSX:CWA.UN) today announced that its indirect subsidiary, Coast Wholesale Appliances LP (Coast), has completed the acquisition of the assets and business of independent Ontario appliance dealer Morley's Appliance Centre. The transaction was financed by Coast's existing acquisition term facility.

Initially announced October 31, 2008, the acquisition is in keeping with Coast's strategic objective of expanding its business into Central Canada. Morley's operates one location situated in the Greater Toronto Area in the Township of Vaughan. The purchase allows Coast to generate incremental sales revenue growth and capitalize on its buying power and the strong operating synergies that exist between the two businesses.

"We believe this acquisition will give us the foothold we need to build a strong presence in Ontario," said Blain Lawson, Chief Executive Officer of Coast. "We are looking forward to building on Morley's excellent reputation and customer base."

Coast has operated in Western Canada since 1978 and is a leading independent supplier of major household appliances to developers and builders of multi-family and single-family housing, and to retail customers. With the Morley's acquisition, Coast has 15 stores and four warehouse distribution centres located across the four western provinces, plus one store in Southern Ontario.

Fund profile

Coast Wholesale Appliances Income Fund was created to acquire and hold a 65% indirect interest in Coast Wholesale Appliances LP and its results are entirely dependent upon Coast's operating results. The remaining 35% interest has been retained by the previous ownership. Since its inception, the Fund has paid 41 consecutive monthly distributions to unitholders.

Forward-looking statements

This news release may contain forward-looking statements relating to expected future events and financial and operating results of Coast that involve risks and uncertainties. The actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons. These include market and general economic conditions, the result of due diligence inquiries and negotiation of binding acquisition documents, and the risks and uncertainties detailed from time to time in Coast's continuous disclosure materials filed with Canadian securities regulatory authorities, including the third quarter 2008 and year-end 2007 Management's Discussion and Analyses filed at SEDAR (www.sedar.com). These forward-looking statements are based on assumptions that management considered reasonable at the time they were prepared. Due to the potential impact of these factors, Coast disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

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