January 18, 2006 08:00 ET

Eveready Expands Operations in East-Central Alberta and Western Saskatchewan

EDMONTON, ALBERTA--(CCNMatthews - Jan. 18, 2006) - Eveready Income Fund ("Eveready") (TSX:EIS.UN) announces that it is significantly expanding its oilfield services capabilities in East-Central Alberta and Western Saskatchewan. Eveready first achieved a significant presence in this region through its acquisition of Winterhawk Enterprises (Provost) Ltd. in November 2004 and then by adding Allstar Oilfield Services Ltd. based out of Lloydminster in July of 2005.

During the past three months, Eveready has completed four additional acquisitions of oilfield services companies in this region and announces today that it has entered into a letter of intent to acquire yet another private Alberta oilfield services company. These acquisitions will expand Eveready's operations into a number of new geographical areas including Stettler and Wainright in East-Central Alberta and Coleville and Waseca in Western Saskatchewan.

The aggregate purchase price for the four completed acquisitions and the proposed acquisition discussed above (collectively referred to as the "Acquisitions") is $8.6 million, satisfied through cash consideration. The Acquisitions include a fleet of approximately 48 units including flush-by units, vacuum trucks, pressure trucks, tank trucks, hot oiling units, coil tubing units, and support trucks. Eveready estimates that these Acquisitions could generate EBITDA of between $2.5 and $3.0 million in aggregate on an annual basis.

Completion of the proposed acquisition announced today is subject to a number of conditions, including but not limited to, the completion of satisfactory due diligence by Eveready.

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".

EBITDA is a financial measure that does not have any standardized meaning prescribed by Canadian GAAP and may not be comparable to EBITDA calculated by other funds or entities. EBITDA is provided to assist management and investors in determining the ability of Eveready to generate cash flow prior to consideration of how these activities are financed or how the results are taxed in various jurisdictions. EBITDA is defined as earnings before interest, taxes, amortization, and loss (gain) on disposal of property, plant and equipment.

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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