EVEREADY INCOME FUND
TSX : EIS.UN

EVEREADY INCOME FUND

August 29, 2005 08:30 ET

Eveready Announces $60 Million Credit Facility

EDMONTON, ALBERTA--(CCNMatthews - Aug. 29, 2005) - Eveready Income Fund ("Eveready") (TSX:EIS.UN) announces that it has entered into an agreement with one of its current term lenders to establish a $60 million revolving extendible senior secured credit facility. The purpose of the credit facility is to refinance existing term indebtedness, subordinated debt and operating leases; and to fund future capital expenditures and acquisitions.

The credit facility will require payments of interest only and will be secured by a first fixed charge over property and equipment and a second position charge over accounts receivable and inventory. The credit facility is renewable semi-annually subject to the mutual consent of both parties. To the extent that the credit facility is not renewed, the outstanding credit facility will be subject to a twelve month interest only phase followed by a straight line amortization period of thirty months.

Completion of the credit facility is subject to certain conditions precedent including due diligence by the lender and final documentation customary for financings of this type. Eveready expects that this credit facility will be in place by September 30, 2005.

John M. Stevens, Eveready's Chief Financial Officer, comments "Eveready is very pleased to establish this facility. The facility will provide significant flexibility to Eveready allowing us to take full advantage of future growth opportunities through both capital expenditures and business acquisitions. The structure of the new facility will also result in an increase of cash available for distribution and growth."

Eveready is a growth oriented income fund that provides industrial cleaning, oilfield, and environmental services to the energy, resource, and manufacturing sectors. The units of Eveready are listed for trading on the Toronto Stock Exchange under the trading symbol "EIS.UN".

This press release contains forward-looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances or achievements of Eveready to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, fluctuations in the market for oil and gas and related products and services, political and economic conditions, the demand for services provided by Eveready, industry competition and Eveready's ability to attract and retain both customers and key personnel.

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