The Consumers' Waterheater Income Fund

The Consumers' Waterheater Income Fund

October 16, 2007 07:00 ET

The Consumers' Waterheater Income Fund Acquires Festival Hydro's Water Heater Assets

Festival Hydro's Rental Rates will remain Unchanged until 2009

TORONTO, ONTARIO--(Marketwire - Oct. 16, 2007) - The Consumers' Waterheater Income Fund (the "Fund") (TSX:CWI.UN) today announced it has entered into an agreement to acquire the water heater rental business of Festival Hydro Services Inc. for approximately $1.4 million. Under the terms of the purchase agreement, the acquisition is to take place on November 1, 2007, subject to customary closing conditions.

The acquisition adds approximately 3,500 water heaters to the Fund's portfolio.

"This acquisition will increase our presence outside of our traditional territory," said John Macdonald, President and Chief Executive Officer.

The Fund will freeze customer rental rates on the newly acquired portfolio until 2009. Festival Hydro's water heaters will continue to be serviced by the current local community provider.

About The Consumers' Waterheater Income Fund

The Consumers' Waterheater Income Fund owns a portfolio of over 1.4 million installed water heaters and other assets, leased primarily to residential customers in Ontario. The asset base has been generating stable and growing cash flows since its inception in the late 1950s.

About Festival Hydro Services Inc.

Festival Hydro Services Inc. is the unregulated affiliate of Festival Hydro Inc. Festival Hydro Inc. is a local electricity distribution companies in South West Ontario, providing service to over 19,500 residential and business customers in the municipalities of Stratford, Brussels, Dashwood, Hensall, St. Marys, Seaforth and Zurich. It is an incorporated entity, owned by the City of Stratford.

Forward-Looking Statements

This press release contains forward-looking statements relating to expected future events which reflect management's expectation regarding the Fund's growth, financial results and operating performance. Such forward-looking statements reflect management's current beliefs and are based on information available to them. Many factors could cause results to differ from the results discussed or implied in the forward-looking statements and these differences may be material. Although the forward-looking statements are based on what management believes to be reasonable assumptions, there are many risks and uncertainties that could affect the results discussed or implied in the forward looking statements. The Fund therefore cannot assure investors that actual results will be consistent with these forward-looking statements. The assumptions include but are not limited to: terminations, replacements, rental rates and service costs. These risks and uncertainties include, but are not limited to: billing arrangements, social or technical changes, regulatory changes, product faults, geographic concentration, competition, lack of written contracts and Income tax matters. A summary of these risks and uncertainties can be found in the Fund's most recently filed management's discussion and analysis and current annual information form, both of which can be found on SEDAR at The Fund is under no obligation (and expressly disclaims any such obligation) to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

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