Supremex Inc.

Supremex Inc.

December 16, 2008 17:54 ET

Supremex Income Fund Announces December Distribution and a Reduction in Future Distributions

MONTREAL, QUEBEC--(Marketwire - Dec. 16, 2008) - Not for distribution in the United States or over United States wire.

Supremex Income Fund ("Supremex"), Canada's largest provider of stock and custom manufactured envelopes (TSX:SXP.UN), announced today a monthly cash distribution of $0.0958 per Fund unit to unitholders of record at the close of business on December 31, 2008. This cash distribution covers the period from December 1, 2008 to December 31, 2008 and is payable on January 15, 2009.

While Supremex's operations are still sound, in view of the recent rapid and drastic decrease of the Canadian dollar, the deteriorating economic conditions and the heightened risk in the credit market, the management and the board of trustees believe it is prudent to reduce the monthly distribution from $0.0958 per unit to $0.05 per unit, commencing for the month of January 2009. The reduction is effected in order to improve Supremex's balance sheet and allow the Company to position itself for further growth through accretive acquisitions in the future. The management and the Board believe that this new distribution level is sustainable for the foreseeable future.

The Board of Trustees approves the level of monthly distributions based upon estimated distributable cash flow on an annual basis. Distributions by the Fund are subject to change and are entirely dependent on the performance of Supremex Inc. and its ability to make distributions to the Fund.

About Supremex

Supremex Income Fund is Canada's largest manufacturer and marketer of a broad range of stock and custom envelopes and related products. Supremex is the only national envelope manufacturer in Canada with facilities in seven provinces and employs approximately 800 people. This nationwide presence enables it to manufacture products tailored to the specifications of major national customers such as leading Canadian corporations, national resellers and governmental entities, as well as paper merchants and process and solutions providers.

Contact Information

  • Supremex Income Fund
    Stephane Lavigne, CA
    Vice-President and Chief Financial Officer