The North West Company Inc.

The North West Company Inc.

April 20, 2007 17:31 ET

North West Company Fund Receives Favourable Tax Ruling

WINNIPEG, MANITOBA--(CCNMatthews - April 20, 2007) - The North West Company Fund ("NWF") (TSX:NWF.UN) announces it has received a satisfactory tax ruling from the Canada Revenue Agency ("CRA") allowing NWF to proceed with the second step of a previously announced reorganization. The reorganization will change the flow of earnings such that most of the Canadian pretax earnings will flow to the Fund. The reorganization, subject to receiving lender approval, should be completed in the next 60 to 90 days. Once finalized, and assuming the present earnings trend continues, annual distributions should increase in the range of $0.21 to $0.27 per unit.

"We are pleased that we have secured a ruling from CRA that enables us to complete the last step in creating a more efficient limited partnership structure for our unitholders," commented Edward Kennedy, President & CEO of North West.

The North West Company Inc. (NWC) is a leading retailer of food and everyday products and services to rural communities and urban neighborhoods across Canada and Alaska. NWC operates 201 stores under a number of trading names, including Northern, NorthMart, Giant Tiger and AC Value Center, and provides catalogue shopping services through its Selections catalogue in northern Canada.

The units of the North West Company Fund trade on the TSX Toronto Stock Exchange under the symbol "NWF.UN".

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