May 25, 2006 16:21 ET

Eveready Announces Bought Deal Financing

EDMONTON, ALBERTA--(CCNMatthews - May 25, 2006) -


Eveready Income Fund (TSX:EIS.UN) is pleased to announce that it has entered into an agreement, on a bought deal basis, with a syndicate of underwriters led by Blackmont Capital Inc., and including BMO Nesbitt Burns Inc., CIBC World Markets Inc., Acumen Capital Finance Partners Ltd. and Sprott Securities Inc. for an offering of $50,000,000 aggregate principal amount of convertible unsecured subordinated debentures (the "Debentures"). The offering is subject to normal regulatory approval and expected to close on or about June 15, 2006.

The Debentures, with a face value of $1,000 per Debenture, will have a coupon of 7.00%, mature on June 30, 2011 and will be convertible into trust units of Eveready at a price of $8.50 per trust unit. Purchasers converting their Debentures will receive accrued and unpaid interest thereon. Purchasers of the Debentures will receive interest semi-annually with the first interest payment occurring on December 31, 2006.

The proceeds from the financing will be used to reduce senior outstanding debt incurred to fund past acquisitions and for general business purposes.

Eveready Income Fund is in the business of providing industrial and oilfield services, health, safety and environmental services and oilfield equipment rental services to the energy, resource and manufacturing sectors.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

Forward Looking Statements

This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oilfield services industry and industrial services industry (e.g., the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, ability to access sufficient capital from internal and external sources, the uncertainty of estimates and projections relating to costs and expenses, and health, safety and environmental risks. Additional information on these and other factors that could affect Eveready's operations or financial results are included in Eveready's reports on file with Canadian securities regulatory authorities.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward looking statements. The actual results, performance or achievement of Eveready could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits that Eveready will derive therefrom. Eveready disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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