Tree Island Wire Income Fund

Tree Island Wire Income Fund

July 06, 2007 18:03 ET

Tree Island Completes Acquisition of US and Chinese Wire Products Manufacturers

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 6, 2007) - Tree Island Wire Income Fund (the "Fund") (TSX:TIL.UN) today announced that it has completed its acquisition of Universal Metal New Material Co., Ltd. ("UM") and the assets of Baoan International Investment Co. ("BII") for US$17.5 million.

The acquisitions, described in the Fund's news release of April 2, 2007, are a key step in Tree Island's strategy to establish operations in Asia, and enhance its product offering to customers in North America and abroad.

UM, a Hong Kong holding company, owns and operates two wire products manufacturing facilities in Tianjin, China, and a branch office in Beijing, China. It will become a subsidiary of Tree Island Industries Ltd.

BII owns Universal Sourcing of America Industries Inc. ("USA Wire"), a wire products business with a manufacturing facility in Corona, California, and corporate offices in Covina, California. The BII assets were purchased by Tree Island Wire (USA), Inc. and will be operated by this subsidiary.

Tree Island also announced today that it has entered into a CDN$44.5 million credit facility and a US$44 million credit facility with its Canadian and US lenders. These new facilities replace the Fund's existing credit facilities and will be used to finance the Baoan acquisition and fund future growth opportunities, as well as for general corporate purposes.

Fund Profile

Tree Island Wire Income Fund was launched on November 12, 2002, with the completion of an Initial Public Offering. There are currently 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 and Industrial Alloys brand names and, subsequent to the acquisition, also under the USA-Wire brand name. Tree Island Wire Income Fund owns a 100% ownership interest in Tree Island Industries.

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