UE Waterheater Income Fund
TSX : UWH.UN

UE Waterheater Income Fund

July 15, 2005 17:23 ET

UE Waterheater Income Fund Announces Close of Protectron Holdings Inc. Acquisition and Conversion of Subscription Receipts into UE Waterheater Income Fund Units

TORONTO, ONTARIO--(CCNMatthews - July 15, 2005) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES.

UE Waterheater Income Fund ("UE Waterheater" or "the Fund") (TSX:UWH.UN) is pleased to announce the closing of its operating entity, Union Energy Limited Partnership's ("Union Energy LP"), acquisition of Gestion Protectron Inc./ Protectron Holdings Inc. ("Protectron"), Canada's largest privately-held security monitoring and installation company, for approximately C$135 million ("the Acquisition"). The Acquisition was financed through an offering of Subscription Receipts ("the Offering") and bank credit facilities. Holders of the Subscription Receipts received, for no additional consideration, one unit of the Fund with the closing of the Acquisition.

UE sold to a syndicate of underwriters led by CIBC World Markets Inc., 7,720,000 Subscription Receipts at a price of $13.60 per Subscription Receipt, for gross proceeds of approximately $105 million. The Subscription Receipts were offered by way of a short form prospectus filed in all provinces and territories of Canada. Closing of the Offering occurred earlier today. The net proceeds of the Offering, combined with bank credit facilities, fully funded the Acquisition. Since the Acquisition closed today after the close of the market the Subscription Receipts will be halted at the opening and for the entire day on Monday, July 18 and will be delisted from the Toronto Stock Exchange upon the close of the market on Monday, July 18.

"The Protectron acquisition enables us to expand our already large base of customers, who are increasingly looking to us for additional products and services," says Roger Rossi, UE Waterheater Income Fund president and CEO, adding: "Our acquisition of Protectron is expected to be accretive to distributable cash and is consistent with our business objectives of continuing to grow our portfolio of customers, leveraging our base of approximately one million customers, and maximizing operational efficiency."

About UE Waterheater Income Fund

UE Waterheater Income Fund is an unincorporated, open-ended, limited purpose trust established under the laws of the Province of Ontario, created to indirectly acquire and hold, through the UE Waterheater Operating Trust, the water heater rental business of Union Energy LP and its related commercial activities. Each Unit of the Fund represents an indirect ownership interest in Union Energy LP, which operates the Union Energy business.

Union Energy LP's main business is the rental and service of a portfolio of more than one million residential water heaters in Ontario, under the Union Energy, Ontario Hydro Energy and Reliance Home Comfort brand names. Union Energy LP owns and services Canada's second largest portfolio of rental water heaters in a program that was initiated in the 1960s. In addition, Union Energy LP has related commercial activities that complement the water heater rental business, being the retail sale, rental, servicing and financing of heating, ventilation and air conditioning equipment.

For more information on the UE Waterheater Income Fund, visit the web site at www.ueincomefund.com.

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