The Futura Corporation

The Futura Corporation

February 27, 2008 13:03 ET

Futura Calls for Fellow Unitholders to Join the Movement for Change at Tree Island

Support Grows For Unitholder Nominees Who Will: - Correct The Fund's Failing Strategy - Be Fully Aligned with Unitholder Interests - Act to Reverse the Destruction of Unitholder Value

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2008) - The Futura Corporation ("Futura") today reminded its fellow unitholders that the deadline to vote the YELLOW proxy for positive change at Tree Island Wire Income Fund ("Tree Island" and the "Fund") is this Friday, February 29 at 11:00 A.M. Vancouver time.

The proxies will be counted at the March 4 special meeting which was requisitioned by Futura to allow fellow unitholders to vote to replace five of Tree Island's eight trustees with nominees who are better able to represent the interests of all unitholders and who are committed to reversing the Fund's destruction of unitholder value. Futura is the largest unitholder of Tree Island, with 19.9% of the outstanding units.

"Other unitholders with small and large interests in Tree Island have recognized the Current Trustees' disastrous course and have been expressing their support for change," said Amar S. Doman, President and CEO of Futura. "Despite the misinformation spread by Current Trustees and their attempts to ignore the very real problems at the Fund, our fellow unitholders have shown they understand why change is needed. We urge all unitholders to vote their YELLOW proxy to give the reconstituted Board a strong mandate to act."

Futura filed a proxy circular on February 8, 2008 that provides unitholders with reasons to support its resolution at the special meeting. Futura recommends that unitholders who want the facts read its circular which is available at www.sedar.com and at www.futuracorporation.com.

Those reasons include:

The Current Trustees have failed to protect and create value for unitholders:

- Tree Island units lost 80% of their value in less than 24 months and 50% of their value since the introduction of the current Fund strategy.

- Distributions have been cut by 33% since the introduction of the current Fund strategy.

The strategy adopted by the Current Trustees does not - and will not - work:

- Financial performance has deteriorated significantly through the first nine months of 2007 from the comparable period of 2006.

- Aggressively pursuing growth and failing to control costs during a significant industry downturn has weakened Tree Island's balance sheet and adversely affected financial results.

- While claiming their strategy is working, the Current Trustees will not release results for the fourth quarter of 2007 prior to the special meeting - which would allow unitholders to decide for themselves.

- There is no evidence that the Baoan acquisition was accretive to distributable cash flow or met the key criteria the Current Trustees used to rationalize it.

The Current Trustees do not share the financial interests of unitholders:

- As a group, the Trustees that Futura is asking fellow unitholders to replace own less than two-tenths of one percent of Tree Island's units and have committed virtually none of their personal wealth to an investment in the Fund.

The Unitholder Nominees proposed by Futura are aligned with the interests of all unitholders:

- Futura is seeking only to replace five of the eight Current, Trustees; it is not increasing its ownership position. Tree Island's unitholder rights plan prevents any "creeping takeover" of the Fund and cannot be removed without unitholder approval.

- If the Unitholder Nominees are elected, six of the eight trustees of Tree Island will be independent of Futura - and every Trustee will have a legal obligation to act for the benefit of all unitholders.

- The two Futura nominees, Mr. Doman and Harry Rosenfeld, have undertaken to serve as Trustees for C$1 each per year.

- Futura has no interest in pursuing related party transactions with Tree Island.

The Unitholder Nominees bring extensive and relevant business experience to the Board - and an action plan for value enhancement:

- The nominees proposed by Futura have proven track records of successful value creation, which the Current Trustees do not.

- Futura has proposed a specific plan for both immediate action and longer-term direction for consideration by the new independent Board. Further details about this plan are included in Futura's proxy circular and in its news release issued on February 21, 2008.

"Our aim is simple: to halt and reverse the value destruction at Tree Island. We want to see increased distributions and a higher unit price for the Fund. Our interests are completely aligned with all the Fund's unitholders since the only way Futura can prosper is if all unitholders prosper," said Mr. Doman.

Futura urges fellow unitholders to vote the YELLOW proxy to create positive change at Tree Island.

About the Special Meeting

The special meeting of unitholders of Tree Island Wire Income Fund is scheduled be held at 2:00 p.m. Vancouver time, Tuesday March 4, 2008 at the Metropolitan Hotel, 645 Howe Street, Vancouver, B.C.

Proxy Voting

Unitholders are reminded to vote the YELLOW proxy form so that the proxy can be received no later than 11:00 a.m. Vancouver time on Friday February 29, 2008. Detailed instructions are included in the proxy circular that is being distributed to all Tree Island unitholders.

Further information about voting the YELLOW proxy is available from Kingsdale Shareholder Services at 1-866-639-8089.

About Futura

Futura is a Vancouver, British Columbia based private asset management and investment company. Futura has interests in numerous private and public companies, and specializes in income funds in the building materials sector.

Certain statements contained in this press release constitute forward-looking statements. The words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions as they relate to Futura, the Unitholder Nominees, Tree Island or future management are intended to identify forward-looking statements. Such statements reflect Futura's current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause Tree Island's actual results, performance or achievements that may be expressed or implied by such forward-looking statements to vary from those described herein should one or more of these risks or uncertainties materialize. Such factors include, but are not limited to, economic, business, competitive and regulatory factors.

Contact Information

  • Investors:
    Kingsdale Shareholder Services
    Wesley Hall
    1-866-639-8089
    or
    Media:
    Lute & Company
    John Lute
    (416) 929-5883