October 12, 2005 16:16 ET

Eveready Announces Equity Financing

EDMONTON, ALBERTA--(CCNMatthews - Oct. 12, 2005) -

This press release is not to be distributed to U.S. newswire services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. securities law.

Eveready Income Fund (TSX:EIS.UN) ("Eveready") announces that it has entered into an agreement to issue units of Eveready ("Units") for total gross proceeds of up to $50,000,000. In addition, the agents have been granted an over-allotment option, exercisable for a period of 30 days from the date of closing, which would increase the total gross proceeds to $70,000,000 if the offering is fully subscribed and the over-allotment option is fully exercised. The Units will be offered for sale on a marketed, best-efforts basis by way of a long form prospectus, filed in all provinces of Canada, excluding Quebec. The syndicate of agents is led by Blackmont Capital Inc. and includes BMO Nesbitt Burns Inc., Acumen Capital Finance Partners Limited and Sprott Securities Inc. Closing of the issue is subject to regulatory approval and is anticipated to occur on or about November 30, 2005.

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

"Upon completion of this offering, Eveready will be in a favourable position to continue the execution of our corporate strategy, " comments Rod Marlin, President and Chief Executive Officer.

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

Eveready is a growth oriented income fund that provides industrial and oilfield services, and health, safety 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.

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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