May 26, 2006 08:00 ET

Eveready Income Fund to Acquire Airborne Imaging Inc.

EDMONTON, ALBERTA--(CCNMatthews - May 26, 2006) - Eveready Income Fund (TSX:EIS.UN) ("Eveready") announces that it has entered into a letter of intent to acquire 100% of the issued and outstanding shares of Airborne Imaging Inc. ("Airborne"). Airborne is a private Alberta-based company that provides comprehensive planning and mapping solutions to companies operating primarily in the oil and gas sector. These services will compliment the existing surveying and seismic line clearing services that Eveready's wholly owned subsidiary, River Valley Energy Services Ltd. already provides.

"This acquisition will benefit our customers by allowing them to obtain a complete package of mapping and surveying services at one stop," comments Rod Marlin, Eveready's President and Chief Executive Officer. "This is another example of how we are positioning ourselves as the preferred supplier to our customers."

The letter of intent contemplates a purchase price of approximately $4.8 million, payable through a combination of: (i) $1.9 million in cash and (ii) $2.9 million in Units of Eveready issued at a deemed price of $7.69 per Unit.

Completion of the proposed transaction is subject to a number of conditions including, but not limited to, the completion of satisfactory due diligence by Eveready as well as approval of the board of trustees of Eveready. Completion of the transaction is also subject to the receipt of any required regulatory approvals including, but not limited to, the approval of the Toronto Stock Exchange. Assuming that all of the conditions are satisfied, Eveready anticipates the proposed acquisition will be effective October 1, 2006.

Eveready is a growth oriented income fund that provides industrial and oilfield services; health, safety, and environmental services; and oilfield equipment rental services to the energy, resource, and manufacturing sectors. The Units of Eveready trade on the Toronto Stock Exchange under the trading symbol "EIS.UN".

This press release contains forward-looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances or achievements of Eveready to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, fluctuations in the market for oil and gas and related products and services, political and economic conditions, the demand for services provided by Eveready, industry competition and Eveready's ability to attract and retain both customers and key personnel.

Contact Information

  • Eveready Income Fund
    Rod Marlin
    President & CEO
    (780) 451-6075
    (780) 451-2142 (FAX)
    Eveready Income Fund
    John M. Stevens
    (780) 451-6075
    (780) 451-2142 (FAX)
    Website: www.evereadyincomefund.com