Tree Island Wire Income Fund
TSX : TIL.UN

Tree Island Wire Income Fund

February 26, 2008 07:00 ET

Tree Island Receives Broad Support Including ISS and Urges All Unitholders to Vote Before Deadline

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 26, 2008) - Tree Island Wire Income Fund (the "Fund") (TSX:TIL.UN) today announced that it has received support for the incumbent Board from a broad array of independent unitholders as well as from ISS Governance Services. Tree Island urged all unitholders to vote their blue proxy AGAINST dissident The Futura Corporation prior to the cut-off date of February 29, 2008.

As previously disclosed, ISS, a highly respected and neutral third party, recommended last week that Tree Island unitholders vote AGAINST Futura. ISS, after discussions with Tree Island and Futura, determined that:

- The incumbent board has put a strategy in place that is showing positive results; and

- The dissident (Futura) has proposed no new strategy or capability to generate results.

As an example of the broad unitholder support that the incumbent Board is receiving, Mr. Alex Kisin, one of the Fund's largest retail unitholders, stated that he and his family are providing their support to the current Board and voting AGAINST Futura. "We are outraged by the raid on the Board of Trustees attempted by Futura," said Mr. Kisin in a letter to Tree Island. "It accomplishes nothing other than to hurt the Fund through unnecessary cost and distraction. We have of course voted against it."

Keith Purchase, Chairman of the Board of Trustees of Tree Island, stated, "It is evident that ISS and many others support the incumbent board and do not believe in Futura's message. It is important for all unitholders to actively deliver their proxies, no matter how large or small their holdings, to prevent Futura from seizing control of the Fund without paying a premium to unitholders."

For more information or a copy of the Trustees' circular, visit www.treeisland.com.

The proxy to vote is BLUE

A special meeting of unitholders is scheduled for March 4, 2008, at which time unitholders will decide the composition of Tree Island's Board of Trustees. You can support the Fund's Board of Trustees by voting the enclosed BLUE form of proxy you received in the mail, with a VOTE AGAINST the resolution to remove certain of their members and to WITHHOLD your vote in connection with Futura's nominees.

You likely also will receive a proxy form in the mail from Futura. The Board recommends that you discard any such materials. By using the proxy form sent to you from Futura, you risk voting in favour of the proposals by Futura. Even if you have already voted using the dissident proxy you have every right to change your vote by simply executing the BLUE proxy as it is the later dated proxy that will be counted.

Your vote is extremely important - no matter how many or how few units you own. Unitholders must execute and vote their BLUE proxies on or before February 29, 2008 at 2:00 p.m. (Vancouver time) for their votes to be counted.

The Trustees' circular is available on SEDAR (www.sedar.ca) and the Tree Island website (www.treeisland.com). Questions and requests for assistance about the meeting may be directed to Georgeson Shareholder Communications Canada, Inc., the Proxy Solicitation Agent for the Fund, toll-free at 1-866-725-6498. Unitholders can also consult their broker or financial advisor for further information.

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.

Contact Information

  • Tree Island Industries Ltd. - Corporate Contact
    Brian Irving
    Chief Financial Officer
    (604) 523-4516
    Email: birving@treeisland.com
    Website: www.treeisland.com
    or
    Longview Communications Inc.
    Alan Bayless
    Media Contact
    (604) 694-6035
    or
    Georgeson Shareholder Communications
    Unitholder information
    Toll Free: 1-866-725-6498