EVEREADY INCOME FUND
TSX : EIS.UN

EVEREADY INCOME FUND

January 30, 2006 16:15 ET

Eveready Announces Bought Deal Equity Financing

EDMONTON, ALBERTA--(CCNMatthews - Jan. 30, 2006) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Eveready Income Fund (TSX:EIS.UN) is pleased to announce that it has entered into an agreement to issue 6,500,000 trust units priced at $7.00 per trust unit for total gross proceeds of $45,500,000. In addition, the underwriters have been granted an over-allotment option, exercisable at any time up to 48 hours prior to close, which would increase total proceeds to $56,000,000 if fully exercised. The trust units will be offered for sale on a bought-deal basis by way of a short form prospectus, filed in all provinces of Canada, excluding Quebec. The syndicate of underwriters is led by Blackmont Capital Inc. Closing of the issue is subject to regulatory approval and is anticipated to occur on or about February 23, 2005.

The proceeds from the financing will be used to reduce outstanding debt incurred to fund past acquisitions and for general business purposes.

"Given the confidence the investment community has placed in our ability to execute our business strategy, this bought deal financing represents another milestone in the ongoing development of the Eveready Income Fund." Commented Rod Marlin, President and Chief Executive Officer.

"This offering will reduce leverage to nil," added John Stevens, Chief Financial Officer "and going forward will allow Eveready to continue our accretive growth on a per unit basis and with significant financial flexibility."

Eveready Income Fund operates in the industrial cleaning services, environmental services, oilfield services and mechanical services industries.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The common shares offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.

Forward Looking Statements

This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oilfield services industry and industrial services industry (e.g., the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, ability to access sufficient capital from internal and external sources, the uncertainty of estimates and projections relating to costs and expenses, and health, safety and environmental risks. Additional information on these and other factors that could affect Eveready's operations or financial results are included in Eveready's reports on file with Canadian securities regulatory authorities.

Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward looking statements. The actual results, performance or achievement of Eveready could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits that Eveready will derive therefrom. Eveready disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The TSX Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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