The Consumers' Waterheater Income Fund

The Consumers' Waterheater Income Fund

April 23, 2007 17:38 ET

Canada's Leading Proxy Voting Authority Recommends Unitholders of the Consumers' Waterheater Income Fund Vote FOR Unitholder Rights Plan

The Fund Extends Deadline to Deliver Completed Proxy

TORONTO, ONTARIO--(CCNMatthews - April 23, 2007) - The Consumers' Waterheater Income Fund (TSX:CWI.UN) (the "Fund") today announced that Institutional Shareholder Services of Canada (ISS), a leading independent voting advisory service, recommends that unitholders of the Fund vote FOR the Fund's Unitholder Rights Plan (the "Rights Plan"). In conjunction with ISS's recommendation, the Fund also announced that it has extended the deadline to deliver completed proxies to April 25, 2007, at 2:30 p.m. (Toronto time).

In a report issued April 13, 2007, ISS opposed the Fund's Rights Plan because of the Fund's definition of Acquiring Person. An Acquiring Person, one that beneficially owns 20 per cent or more of the company's voting units, was critical to determining who could trigger the Fund's Rights Plan. ISS later amended its recommendation in a report issued April 20, 2007, as the Fund made technical amendments recommended by ISS to its definition of Acquiring Person to conform to ISS's published norms for rights plans in ISS's Corporate Governance Review.

"We are pleased that ISS has recommended that unitholders vote in favour of the Fund's Rights Plan," said John Macdonald, President and CEO. "The Fund is committed to serving the interests of its unitholders with the highest standards of corporate governance. Unitholders are reminded that their vote is important for the Fund's long term success."

In order to accommodate the needs of its unitholders, the Fund has extended the deadline to deliver completed proxies to Computershare Investor Services Inc. by April 25, 2007, at 2:30 p.m. (Toronto time).

Any unitholder who has not yet voted is urged to vote FOR the proposed Rights Plan. Any unitholder that has already voted FOR the proposed Rights Plan need not take any action, as their votes will be counted. Any unitholder who has WITHHELD their vote in respect of the proposed Rights Plan is encouraged to change its vote and vote FOR the proposed Rights Plan. Those unitholders who wish to change their vote may deposit completed proxies for the Annual and Special Meeting until 2:30 p.m. (Toronto time) on April 25, 2007.

About The Consumers' Waterheater Income Fund

The Consumers' Waterheater Income Fund owns a portfolio of 1.4 million installed water heaters and other assets, leased primarily to residential customers in Ontario. Direct Energy Essential Home Services provides service support to the portfolio and receives 35% of aggregate rental revenues; thereby significantly reducing the Fund's operating risk. The asset base has been generating stable and growing cash flows since its inception in the late 1950s.

Permission to use the information set out in this news release was neither sought nor obtained from ISS. The TSX does not accept responsibility for the adequacy or accuracy of this news release.

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