October 13, 2006 19:07 ET

Eveready Income Fund Closes Acquisition of Environmental Services Business

EDMONTON, ALBERTA--(CCNMatthews - Oct. 13, 2006) -

Not for distribution in the United States or through United States newswire services

Eveready Income Fund ("Eveready") (TSX:EIS.UN) is pleased to announce that it has completed its previously announced acquisition of Great Lakes Carbon Treatment, Inc. ("Great Lakes"). Located in Michigan, Great Lakes has been servicing the needs of the environmental, industrial, and municipal markets throughout the continental United States since 1990. Great Lakes specializes in the custom design and manufacturing of activated carbon filters and dewatering systems for construction and pollution control equipment for air, soil, and water. The Company also provides environmental remediation services to a wide range of customers operating primarily in the chemical, petroleum, utilities, real estate and manufacturing sectors.

The purchase price of US $4.0 million was paid via (i) US $2.0 million in cash and (ii) US $2.0 million through the issuance of 324,283 Units of Eveready. Eveready estimates this acquisition could generate EBITDA of approximately US $1.0 million to US $1.5 million on an annual basis.

"This acquisition builds on the current filtration and environmental remediation services that we already provide to our customers," comments Rod Marlin, Eveready's President and Chief Executive Officer. "This acquisition also expands our presence in the United States as a quality provider of health, safety and environmental services."

The vendors have also agreed to participate their Units in Eveready's Principal Unitholder Agreement. Under this agreement, each Principal Unitholder has agreed to not sell more than 10% of such Principal Unitholder's Units in any one year and to reinvest in the distribution reinvestment plan of the Fund 100% of the distributions received on such Principal Unitholder's Units until March 31, 2010.

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 supplemental earnings 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 a useful supplemental measure as it provides an indication of the financial results generated by Eveready's principal business activities prior to consideration of how these activities are financed or how the results are taxed in various jurisdictions and before non-cash amortization expense. EBITDA is defined as earnings before interest, taxes, depreciation and amortization.

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.

Contact Information

  • Eveready Income Fund
    Rod Marlin
    President & CEO
    (780) 451-6075
    (780) 451-2142 (FAX)
    Eveready Income Fund
    John M. Stevens
    Senior Vice President & CFO
    (780) 451-6075
    (780) 451-2142 (FAX)
    Website: www.evereadyincomefund.com