EVEREADY INCOME FUND
TSX : EIS.UN

EVEREADY INCOME FUND

February 27, 2007 08:00 ET

Eveready Income Fund Releases 2006 Canadian Tax Information

EDMONTON, ALBERTA--(CCNMatthews - Feb. 27, 2007) - Eveready Income Fund (TSX:EIS.UN) ("Eveready") has announced information necessary for 2006 Canadian tax reporting. The information provided below is solely to assist Canadian individual unitholders with tax reporting information in respect of distributions declared during the calendar year 2006. This information is not intended to constitute legal or tax advice to any holder or potential holder of Eveready units ("Units"). Canadian unitholders should consult with a taxation or investment professional for additional tax advice. The following summary applies to unitholders who are residents of Canada under the Income Tax Act (Canada) and who hold their units as capital property.

Units held within an RRSP, RRIF, RESP or DPSP

No amounts are to be reported on the unitholders' 2006 Income Tax Return where Units are held within a Registered Retirement Savings Plan (RRSP), Registered Retirement Income Fund (RRIF), Registered Education Savings Plan (RESP) or a Deferred Profit Sharing Plan (DPSP).

Units held outside an RRSP, RRIF, RESP or DPSP

Unitholders who hold their Units outside of an RRSP, RRIF, RESP or DPSP and were entitled to receive distributions on a distribution record date within the calendar year 2006 will receive a T3 Statement of Trust Income Allocations and Designations Slip ("T3") directly from Computershare Investor Services or from the broker/intermediary who the unitholder holds their Units through. Distributions declared in 2006 will be 100% taxable as "Other Income" and reported in box 26 of the T3. The amount reported in box 26 "Other Income" on the T3 should be reported on the unitholders' 2006 Income Tax Return. The deadline for mailing the 2006 T3's to unitholders, as required by the Canada Revenue Agency is March 31, 2007.

Schedule of Tax Treatment of 2006 Distributions



The following schedule details the cash distributions declared in 2006 and
the tax treatment of each distribution per Unit for income tax purposes:


Taxable Return
Amount of Capital Total
Record Date Payment Date (T3-Box 26) (T3-Box 42) Distribution
---------------------------------------------------------------------------

January 31, 2006 February 15, 2006 0.04 0.00 0.04
February 28, 2006 March 15, 2006 0.04 0.00 0.04
March 31, 2006 April 14, 2006 0.04 0.00 0.04
April 28, 2006 May 15, 2006 0.05 0.00 0.05
May 31, 2006 June 15, 2006 0.05 0.00 0.05
June 30, 2006 July 14, 2006 0.05 0.00 0.05
July 31, 2006 August 15, 2006 0.05 0.00 0.05
August 31, 2006 September 15, 2006 0.05 0.00 0.05
September 29, 2006 October 16, 2006 0.05 0.00 0.05
October 31, 2006 November 15, 2006 0.06 0.00 0.06
November 30, 2006 December 15, 2006 0.06 0.00 0.06
December 29, 2006 January 15, 2007 0.06 0.00 0.06
---------------------------------------------------------------------------

Total 0.60 0.00 0.60
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Adjusted cost base of Units for capital gain purposes

Since there is no return of capital component for 2006, the distributions will have no effect on the adjusted cost base of the Units.

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 information is a general guideline only and is not intended to be legal advice to any particular holder or potential holder of Units of Eveready. This information is not exhaustive of all Canadian income tax considerations. Eveready unitholders should consult their own legal and tax advisors as to their particular tax consequences.

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