Coast Wholesale Appliances Income Fund

Coast Wholesale Appliances Income Fund

November 17, 2010 16:05 ET

Coast Wholesale Appliances Income Fund Declares November Cash Distribution and Special One-Time Distribution

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 17, 2010) - Coast Wholesale Appliances Income Fund (TSX:CWA.UN) (the Fund) today announced a cash distribution of $0.0416 per unit for the period from November 1, 2010 to November 30, 2010. This distribution is to be paid December 15, 2010 to unitholders of record on November 30, 2010. A cash distribution in the same amount will be paid to the Fund's 35% non-controlling interest by Coast Wholesale Appliances LP (Coast). In addition, the Fund declared a special, one-time distribution of $0.0416 per unit, also to be paid December 15, 2010 to unitholders of record on November 30, 2010 and the non-controlling interest.

The November distribution is the Fund's sixty-fifth consecutive monthly cash distribution and will be its final payment to public unitholders and the non-controlling interest prior to the Fund's conversion to a publicly traded corporation. The conversion is expected to be completed on or about January 1, 2011. Beginning in 2011, management anticipates that the new public entity, Coast Wholesale Appliances Inc. will pay a monthly dividend approximately equal to 50% of net income, expected to initially translate to $0.035 ($0.42 per annum) per share. This should provide most investors who hold the shares directly with an after-tax return similar to, and in some cases better than, what they currently receive in distributions from the Fund, depending on their tax bracket.

"We previously announced that the November distribution would be our last distribution prior to conversion to a corporate structure," said Patrick Dennett, chairman of the board of trustees of the Fund. "We are pleased to be able to reward our unitholders for their continued support of our business with a special distribution, which effectively replaces the December distribution."

The Fund is an unincorporated, open-ended limited purpose trust launched on June 23, 2005 with the completion of an initial public offering of 6,525,000 trust units. It was created to acquire and hold a 65% indirect interest in Coast, a leading independent supplier of major household appliances and accessories to developers and builders of multi-family and single-family housing, and to retail customers. Founded in 1978, Coast currently operates 16 stores, with 15 locations across the four western provinces and one store in the Greater Toronto Area.

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