Tree Island Wire Income Fund
TSX : TIL.UN

Tree Island Wire Income Fund

June 11, 2008 17:25 ET

Tree Island's Strategy and Pricing Actions Gain Traction

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 11, 2008) - Tree Island Wire Income Fund (TSX:TIL.UN) (the "Fund") today announced that its three-step strategy, along with pricing actions designed to recover higher raw material costs, are supporting improved financial performance.

"While we anticipated our initiatives would have a positive impact on results in the second quarter, our April and May results are proving stronger than expected," said Daniel McAtee, President and CEO of Tree Island Industries and a Trustee of the Fund. "Our sales volumes are continuing to build, month-on-month and year-on-year, with significant gains in some of our higher-margin sectors. Our gross profit per ton has trended steadily favorable from the beginning of the year with sharp increases seen in both April and May. Despite the continued challenging market conditions, year-to-date gross profit per ton is nearly $28 ahead of where we were at this time last year, applied across roughly 27% more volume."

Traction of Tree Island's pricing actions is playing a key role in the improved gross profit results as market awareness of sharply higher raw material costs grows. Ongoing strategic initiatives aimed at balancing the company's product mix and fine-tuning sector profitability are also having a positive impact. As an example, commercial construction products represented 10% of sales in April and May 2008, compared to 6% during the same two months last year. Tree Island is benefiting from the added welded wire mesh capacity and the addition of imported PC strand concrete reinforcing products made possible by last year's acquisition of Baoan International and Universe Metal New Material Company. The company's new international trading operations are also contributing to higher sales volumes, while supporting alternate product strategies within specific markets.

"Although the residential construction market remains challenging and much work remains to be done, we are seeing clear indications that the third step of our strategy is working as intended. We are starting to turn the corner," said Mr. McAtee. "In addition, the Board of Trustees is making good progress in its efforts to maximize unitholder value. We have seen strong interest and are currently in discussions with parties interested in purchasing the surplus lands at our facility in Richmond, BC."

Tree Island Wire Income Fund will provide further detail on strategy implementation and results at its Annual General Meeting to be held at 1:30 pm Pacific on Tuesday, June 24, 2008 at the Fairmont Waterfront Hotel in Vancouver, BC. Concurrent with the start of the meeting, a copy of the AGM presentation will be available on the company's website at www.treeisland.com.

Fund Profile

The Fund holds a 100% ownership interest in Tree Island Industries Ltd., one of North America's largest producers of wire and fabricated wire products. The 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. 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, TI Imports and HK Universe 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 includes forward-looking information with respect to the Fund and the company, including their business, operations and strategies, as well as financial performance and conditions. The use of forward-looking words such as, "may," "will," "expect" or similar variations generally identify such statements. 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. Although management believes that expectations reflected in forward-looking statements are reasonable, such statements involve risks and uncertainties including the risks and uncertainties discussed in the Fund's annual information form dated March 26, 2008 and management's discussion and analysis for the fiscal year ended December 31, 2007.

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, market conditions for products, supplies of and costs for 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, changes in tax legislation, other legislation and governmental regulation, changes in accounting policies and practices, operations in a foreign country, and other risks and uncertainties set forth in publicly filed materials.

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