January 30, 2006 19:45 ET

Eveready Announces Bought Deal Equity Financing

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

This press release is not to be distributed to U.S. newswire services or for dissemination in the United States.

Eveready Income Fund (TSX:EIS.UN) ("Eveready" or the "Fund") is pleased to announce that it has entered into an agreement to issue 6,500,000 Units priced at $7.00 per 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 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. and includes BMO Nesbitt Burns Inc., Acumen Capital Finance Partners Ltd. and Sprott Securities Inc. Closing of the issue is subject to regulatory approval and is anticipated to occur on or about February 23, 2006.

The proceeds from the financing will be used to fund debt obligations incurred as a result of past acquisitions and capital expenditure programs as well as 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 Eveready," commented Rod Marlin, President and Chief Executive Officer.

"This offering provides significant financial flexibility," adds John Stevens, Chief Financial Officer "and will allow Eveready to continue accretive growth on a per unit basis."

Eveready has 34,212,894 Units outstanding and 16,058,478 Exchangeable Securities (as defined below) outstanding convertible or exchangeable into up to a further 16,058,478 Units for a total of 50,271,372 Units and Exchangeable Securities outstanding. "Exchangeable Security" or "Exchangeable Securities" means a unit or units, a share or shares or other securities which are convertible into or exchangeable for Units(s) (directly or indirectly) without the payment by the holder of additional consideration therefore, whether or not issued by the Fund.

Eveready is a growth oriented income fund that provides industrial and oilfield services, health, safety and environmental services and oilfield equipment rental services to the energy, resource, and manufacturing sectors. The Units of Eveready trade 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.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

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