Enbridge Income Fund

Enbridge Income Fund

December 17, 2010 13:41 ET

Enbridge Income Fund Announces Completion of Restructuring

CALGARY, ALBERTA--(Marketwire - Dec. 17, 2010) - Enbridge Income Fund (TSX:ENF.UN) (the "Fund") today announced that the restructuring plan approved by unitholders earlier this year took effect today. As contemplated by the Fund's Notice of Meeting and Information Circular dated March 31, 2010, all publicly held trust units, which collectively represent a 28% economic interest in the Fund, as well as a portion of Enbridge Inc.'s interest in the Fund, were exchanged on a one-for-one basis for shares of Enbridge Income Fund Holdings Inc. ("EIFH"), a taxable Canadian corporation. The scope of activities of EIFH will be limited to investment in the Fund. As a result of the restructuring, Enbridge Income Fund will not be treated as a specified investment flow through (SIFT) trust under Canadian tax rules when those rules take effect in 2011.

EIFH shares will be listed on the Toronto Stock Exchange under ticker symbol 'ENF.TO' and Enbridge Income Fund units 'ENF.UN' will be de-listed concurrently, within three to four business days.

Public unitholders will have a choice either to effect the exchange on a tax-deferred basis or to realize any embedded gain or loss. Further information about the restructuring and an online tax preparation tool for unitholders is available on www.enbridgeincomefund.com.

Dividends paid by EIFH are expected to be eligible dividends which qualify for the enhanced federal dividend tax credit. EIFH will implement a Dividend Reinvestment Plan ("DRIP") similar to that of the Fund whereby participants may elect, without brokerage fees, to automatically reinvest their quarterly dividends in additional EIFH shares. Unitholders currently participating in the Fund's DRIP will be eligible to be enrolled in the EIFH DRIP. Details of the Fund's DRIP are available on the Fund's web site. Investors should contact their respective investment dealer to enroll if they are not currently enrolled in the Fund's DRIP.

Enbridge Income Fund is a premier income fund in Canada with a low-risk profile focused on energy infrastructure assets. It owns a 50% interest in the Canadian segment of the Alliance Pipeline, a 100% interest in Enbridge Pipelines (Saskatchewan) Inc., and a 50% interest in NRGreen Power Limited Partnership, which operates electrical generation facilities using waste heat, and holds interests in three wind power projects in Western Canada. Further information about Enbridge Income Fund and Enbridge Income Fund Holdings Inc. is available at www.enbridgeincomefund.com.

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