Tree Island Wire Income Fund

Tree Island Wire Income Fund

September 18, 2007 16:47 ET

Tree Island Announces US Plant and Office Consolidations

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 18, 2007) - Tree Island Wire Income Fund ("The Fund") announced today that it will consolidate operations at its US plants and offices as it realizes efficiencies resulting from its recent acquisition of USA Wire and Baoan International.

The consolidation will include the closure of two of Tree Island's six US manufacturing plants. The Corona, California manufacturing facility will close by year-end with mesh wire production moving to the TI Wire Plant at Etiwanda, California and stucco wire production moving to Tree Island's K-Lath plant in Fontana, California. The Ferndale, Washington plant will also be closed with collated nail production moving to Tree Island's manufacturing facility in Richmond, B.C. In addition, the Fund will consolidate its US sales, purchasing and administrative functions, closing the Covina, California office.

"Cost reduction and operational efficiency continue to be key components of Tree Island's business strategy," said Daniel McAtee, President and CEO of Tree Island Industries, and a Trustee of the Fund. "The Baoan acquisition has created additional opportunities to reduce our costs and optimize plant utilization with no impact on our product capacity or customer service. We're acting on these opportunities, and expect to complete this program by December 31, 2007."

The Fund anticipates that all costs associated with the consolidation will be incurred in 2007, with full cost recovery and benefits realized in 2008. The consolidation is expected to provide significant ongoing savings thereafter. No production capacity will be lost as a result of the consolidations.

About the Fund

The Fund was launched on November 12, 2002, with the completion of an Initial Public Offering. There are 21,918,400 units of the Fund outstanding, representing a 100% ownership interest in Tree Island.

The Fund's performance depends entirely on the performance of Tree Island.

Tree Island Profile

Headquartered in Richmond, British Columbia, Tree Island Industries produces wire products for a diverse range of construction, agricultural, manufacturing and industrial applications. Its products include bright wire, stainless steel wire and galvanized wire; a broad array of fasteners, including packaged, collated and bulk nails; stucco reinforcing products, engineered structural mesh, fencing and other fabricated wire products. The company markets these products under the Tree Island, K-Lath, Halsteel, Tree Island Wire, Industrial Alloys and USA-Wire brand names. Tree Island also owns and operates a Hong Kong-based trading company that provides internationally sourced products to Tree Island and its customers worldwide.

Forward-Looking Statements

This press release contains forward-looking statements based on assumptions considered reasonable at the time they were prepared. Any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. These statements speak only to the conditions in existence as of the date of this press release, and the Fund maintains no obligation to update such statements.

Forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. Such risks and uncertainties include, but are not limited to, risks associated with operations such as competition, dependence on the construction industry, supplies of raw materials, dependence on key personnel, labour relations, regulatory matters, environmental risks, the successful execution of acquisition and integration strategies, foreign exchange fluctuations, the effect of leverage and restrictive covenants in financing arrangements, product liability, the ability to obtain insurance, energy cost increases, the ability to fund necessary future capital investments, and changes in tax legislation.

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