October 16, 2006 08:00 ET

Eveready Income Fund Increases Monthly Distribution by 20%

EDMONTON, ALBERTA--(CCNMatthews - Oct. 16, 2006) - Eveready Income Fund (TSX:EIS.UN) ("Eveready") announces that the board of trustees of Eveready has declared a cash distribution of $0.06 per unit for the month of October to Eveready's unitholders. This payment represents $0.72 per unit on an annualized basis and is an increase from the previous monthly distribution of $0.05 per unit. Payment will be made on or about November 15, 2006 to unitholders of record as of the close of business on October 31, 2006.

Since becoming a publicly traded income fund in March 2005, Eveready has executed an aggressive growth strategy to significantly expand its service capabilities to both existing and new customers in a number of geographic areas. This growth is being achieved organically and through several business acquisitions.

"The successful execution of this growth strategy is providing accretive cash flow and earnings growth to our unitholders," comments John M. Stevens, Eveready's Chief Financial Officer. "Management and the trustees believe that this distribution increase is sustainable and is warranted by our current operating performance."

"Our business outlook for the remainder of 2006 and 2007 continues to look strong," adds Rod Marlin, Eveready's President and Chief Executive Officer. "Despite the recent downturn in commodity prices, the demand for our services, which are principally provided in the industrial maintenance and production services sector remains strong. In addition, our exposure to shallow gas exploration, which has been cut back significantly in recent months is minimal."

This distribution increase also reflects Eveready's distribution policy, which is to achieve a pay-out ratio of approximately 75% to 85% of distributable cash flow on an annual basis. Based on the October 13, 2006 closing price of $6.75 per unit, the October distribution represents a cash-on-cash annual yield of approximately 10.7%.

Investors are cautioned that monthly distributions are always subject to approval from the board of trustees and may be increased, decreased or suspended by the board at any time.

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.

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