Tree Island Wire Income Fund

Tree Island Wire Income Fund

December 17, 2007 18:53 ET

Tree Island Sets Date for Special Meeting of Unitholders

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2007) - Tree Island Wire Income Fund (the "Fund") (TSX:TIL.UN) announced today that it has called a special meeting of unitholders for March 4, 2008 at the request of The Futura Corporation, a significant unitholder of the Fund. Futura has requisitioned the meeting for the stated purpose of replacing certain of the current trustees with nominees that will be proposed by Futura.

"The Board of Trustees unanimously believes Futura's actions are not in the best interests of the Fund or Tree Island unitholders," said Keith Purchase, Chairman of the Board of Trustees. "We urge unitholders to vote for the slate of directors that will be included in an upcoming Trustees' Circular and to support the Fund as we work to create and deliver value to our unitholders."

"Futura's request for a special meeting will impose significant costs on the Fund. Futura could have waited until the Fund's regularly scheduled annual general meeting in early May and voted with all other unitholders in the selection of the Trustees rather than forcing the Fund to incur the additional costs and distractions of this special meeting at a time when management and the Board are focused on executing Tree Island's strategy. That strategy, which involves a repositioning of Tree Island's market focus both in North America and internationally, is well underway and showing signs of success, but needs more time to achieve the full financial benefits that will result from complete implementation."

Since 2006, when Futura acquired more than 19% of the Fund's units, the Trustees have welcomed a dialogue with Futura and its principal, Amar Doman. In May 2007, the Trustees of Tree Island included Mr. Doman on the slate of Trustees presented to the annual meeting of unitholders, and he was elected to the Board. He remained on the Board until July 2007, when he decided to resign.

"As will be outlined in more detail in the upcoming Trustees' Circular, Tree Island's current board and management have the necessary skills, experience and strategy to guide the Fund for the benefit of all unitholders," continued Mr. Purchase.

Unitholders need not act at this time

There is no need for unitholders to take any action at this time. The Trustees' Circular will provide more detail regarding the Fund's strategy and Mr. Doman's past activities as they relate to Tree Island. The Trustees urge unitholders to read the document carefully before making a decision with regard to the Fund's Board.

Questions and requests for assistance about the meeting may be directed to Georgeson Shareholder Communications Canada, Inc., the Information 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.
    Brian Irving
    Chief Financial Officer
    (604) 523-4516
    Longview Communications Inc.
    Josh Pekarsky
    Media Contact
    (604) 694-6030
    Longview Communications Inc.
    Alan Bayless
    Media Contact
    (604) 694-6035
    Georgeson Shareholder Communications
    Unitholder Information
    Toll Free: 1-866-725-6498