Countryside Power Income Fund

Countryside Power Income Fund

November 30, 2006 15:15 ET

Countryside Power Income Fund Responds to U.S. Energy Biogas Corp. Chapter 11 Filing

LONDON, ONTARIO--(CCNMatthews - Nov. 30, 2006) - Countryside Power Income Fund (the "Fund") (TSX:COU.UN) today announced that it has learned that U.S. Energy Biogas Corp. (USEB and various subsidiaries) have filed voluntary petitions seeking a reorganization under Chapter 11 of the U.S. Bankruptcy Code. The cases are pending in the U.S. Bankruptcy Court for the Southern District of New York. The Fund's C$102 million loan to USEB is collateralized by all of USEB's operating assets and cash reserves. In connection with the reorganization filing by USEB, the Fund intends to enforce its rights as senior secured lender, including seeking protection for the continuation of debt service payments on the USEB loan.

Management and the trustees of the Fund are currently in the process of assessing the impact of the reorganization filing by USEB on the Fund and intend to provide a further update shortly.

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 power generation capacity of 94 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 annual information form dated March 31, 2005 and the Fund and Countryside Canada's prospectus dated November 8, 2005. 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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