Countryside Power Income Fund

Countryside Power Income Fund

September 23, 2005 13:15 ET

Countryside Power Income Fund Announces Increase in Distribution and Change in Management Arrangements

LONDON, ONTARIO--(CCNMatthews - Sept. 23, 2005) - Countryside Power Income Fund (TSX:COU.UN) or the "Fund" today announced that its board of trustees has declared an increase in the Fund's monthly distribution of $0.0009 per unit or $0.01 per unit annually.

"With the recent accretive acquisition of power generation assets in California and the anticipated increase in full year operating cash flow from the completion of capital improvements at our district energy systems, the Countryside board believes an increase in distributions to unitholders is warranted at this time," said Goran Mornhed, President and Chief Executive Officer of Countryside U.S. Power Inc.

The cash distributions to unitholders will increase to $0.0863 per unit monthly or $1.035 per unit annually. The first distribution under the new rate will be paid on or about October 31, 2005 to unitholders of record on September 30, 2005.

Countryside also announced today that its board of trustees has approved a plan modifying the Fund's existing executive management arrangements to bring the Fund in line with its peers in the power income trust sector and strengthen the alignment of unitholder and management interests.

"We have great confidence in the capabilities of our executive management team as demonstrated by our decision to increase distributions," said V. James Sardo, Chairman of the board of trustees. "The amended management arrangements will strengthen the Fund's governance practices while continuing to provide for oversight of the Fund's existing operations, reducing development risk and increasing opportunities for investment in new power generation and utility infrastructure assets that are accretive to distributable cash flow," he said.

Under the modified arrangements, Countryside Ventures LLC, a company independent of the Fund, will provide management and administrative services to the Fund as well as new growth opportunities under long-term agreements. Countryside Ventures will employ the Fund's current executive management team on a full time basis as well as its administrative and development staff. The Fund will have a right of first offer on all investment opportunities developed by Countryside Ventures that meet the Fund's investment criteria. In developing the management arrangements, the Fund's board of trustees was advised by both an independent financial advisory firm and a corporate compensation consultant. More information on the management arrangements and the Ripon acquisition will be available shortly on the Fund's website at or in the applicable documents to be filed with the Ontario Securities Commission at

About Countryside Power Income Fund

Countryside Power Income Fund has investments in two district energy systems in Canada, with a combined thermal and electric generation capacity of approximately 122 megawatts, and two gas-fired cogeneration plants in California with a combined capacity of 95 megawatts. In addition, the Fund has an indirect investment in 22 renewable power and energy projects located in the United States, which currently have approximately 51 megawatts of electric generation capacity and sold approximately 750,000 MMBtus of boiler fuel in 2004. The Fund's investment in the projects consists of loans to, and a convertible royalty interest in, U.S. Energy Biogas Corp.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events and financial and operating results of the Fund that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed from time to time in the Fund's prospectus filed with the Canadian securities regulatory authorities. Due to the potential impact of these factors, the Fund 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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